How Blockchain Becomes Inevitable for Real Estate?

As it emerged, blockchain was viewed as a potential technology with the ability to transform the real estate sector. It was taught to play a critical role in bringing down the incidences of fraud, avoiding unnecessary paperwork, enhancing the possibility of transparent deals, and providing increased access to information.

In the past, unlike many other sectors, real estate was slow to adapt to technological advancements quickly. The industry has always shown heavy reliance on personal contacts building and manual works for driving its operations. However, concerning real estate blockchain solutions, the acceptance was surprisingly faster.

The scenario will undoubtedly prevail as the industry is slowly moving towards an immediate future wherein abilities offered by technologies such as blockchain would become inevitable.

The blockchain is totally electronic and can avoid the requirement for printed mailings, scanned papers, and problematic files. Blockchain technology can be equally beneficial for both residential and commercial real estate transformation.

Here is a look at some of the critical ways wherein blockchain can play a pivotal role in transforming real estate towards the future.

Uncomplicated Processes

The procedures involved while purchasing or disposing of a property can be quite complicated and too time-consuming. These often involve several approvals besides piles of documents. For years, people dealt with these as there was no other option. Real estate has been resistant to many of the changes in the past and present.

However, blockchain is a perfect solution here as it functions as a ledger for real-time clearing of documented transactions. Further, critical information is accessible for all parties involved through a peer-to-peer series. This is through the removal of the need for correspondence between the parties involved.

Escape from Unneeded Middlemen

Traditionally, even a small-level real estate deal has been a cumbersome process. Several parties ranging from mortgage lenders, real estate agencies to title professionals are involved until a transaction is completed. Usually, such transactions involve a tremendous amount of money. For more prominent deals, the money involved would be higher. Only technological advancements can be a solution here. Technology can bring in automation into key processes to save more time, enhance security and ensure optimized buying and selling experiences.

In a blockchain-powered real estate deal, transactions are managed by distributed nodes. People are allowed to leave or join the network based on their discretion without impacting the networker’s capacity to give consent on transactions. Instead of a single network, multiple networks are used to manage financial transactions effectively.

For example, the Ethreum platform, if used for real estate deals, would be able to run smart contracts and applications that can function exactly as scheduled without any occurrence of censorship, downtime, third-party involvement or any fraud. In other words, Ethereum users are able to exchange with confidence and trust.

Ethereum tokens are an implementation of smart contracts that are accessible globally. Further, such tokens can give exposure to a market that can function without intermediaries.

Individuals can directly sell the tokens to the public instead of having to deal with investors to get their projects funded. Individuals could participate in these businesses from across the globe.

In an economy without intermediaries, things turn highly efficient in different ways. A 1 percent transaction rate may not be high, but it adds up across a multi-step supply chain. Consequently, there is an enhanced dependency on smaller supply chains and real estate transactions carried out by container loads.

Streamlining the Process of Title Transfers

The process of documenting and changing the ownership of titles can be unnecessarily long. To add to the complexities, amendments to existing titles are required in many cases. This again makes the process of title transfer much longer.

Moreover, once a precise title becomes a part of the blockchain, the subsequent chain of the titles gets updated automatically in each and every transaction and is protected continuously, resulting in a fraud-proof and error-free title transfer.

Blockchain-enabled real estate along with smart contracts solutions can extend proven value-generation opportunities for the sector both in the immediate future and long-term. Blockchain is perfect for a sector that involves high-value transactions, including complex contracts and business agreements.