Blockchain is the technology that is well-known for its association with cryptocurrencies like Bitcoin. However, its information storage capabilities are capable of much more than that. This tech can have a significant and positive impact on the real estate industry in a number of ways.
What Is Blockchain?
Blockchain refers to the technology designed to encrypt information without having a single owner. In other words, data is secure and allows multiple parties to access it. By creating an immutable record of transactions, the system is a strong preventative measure against fraud. Potential benefits for the real estate industry include transparency and trust, as well as efficiency.
Transparency and Trust
With the new tech, each property has its own digital address and footprint. This means that all the information that relates to that property, such as previous ownership, stays in one place. The platform allows multiple users to access information. This system can become the standard for recordkeeping and documenting property information.
Additionally, blockchain systems are highly customizable. They can be public or limited to administrator approval; of course, this depends on group needs. By using the system, blockchain can lower overall costs. This consensus method establishes enough trust for remote transactions, eliminating the third-party intermediaries. Having all of the information for a property in a digital location with a saved history reduces mistakes and potential fraud associated with manual entries. Blockchain speeds up the verification process.
Real Estate Contracts
Traditionally, real estate contracts are stressful, time-consuming, and costly, due to the need for numerous intermediaries. However, a blockchain system is programmable; it can automate payments and execute business agreements when the right conditions occur.
Overall, blockchain technology is extremely suitable for the real estate industry. Once the program is set up, it can meet the needs of a group of enormous size.