In recent years, Blockchain Technology has grown and become more popular, not only in the financial sector but also in a lot of other industries. It hasn't seen much use in Real Estate Industry just yet though. Experts predict that by 2037 AI will be able to perform most of the tasks previously assigned to humans.
A ripple effect of this is that various industries have adopted blockchain technology, even the most traditional ones like Real Estate. The increased use of Blockchain Development in Real Estate has made many investors and entrepreneurs interested in the technology. We'll dive deeper into the growing Impact of Blockchain Technology on the Real Estate Industry in 2022 and Beyond.
How Blockchain technology is changing the Real Estate Industry?
- Removing the need for the third party
The real estate industry is not one that avoids middlemen. Real estate agents, brokers, etc are all part of the transaction process and banking/legal requirements. These people work together to help a home sale. With Blockchain Technology starting to be used for property transactions, the role of these middlemen will decrease.
This will benefit buyers as well as sellers. They can save time & money and avoid unnecessary delays. The adoption of Blockchain Solutions in the Real Estate Industry could lead to a more transparent and efficient process, which would ultimately prove advantageous for the participants.
- Enhanced Security
Blockchain Technology can improve trust, security, transparency, and the traceability of data across networks. Real estate investing can lead to a number of security challenges, such as the requirement to secure sensitive personal data.
- Smart Contracts
The idea of "Smart Contracts" was first introduced in 1994. This is essentially a computer protocol that can be used to add extra reliability and certainty to contracts you sign. Smart contracts can do more than just revolutionize the real estate industry. They're also a cost-effective solution for sellers and investors with fast transaction times, transparency, and low friction rates.
They're effortless to track in real-time because they are part of the Blockchain Software. Financial transactions can be automated with their help, they offer secure e-signing and time-stamping abilities and can also function without a user.
By deploying smart contracts in real estate, you can eliminate delays, times, and defaults in contract execution while maintaining security and efficiency.
- Property Management
The asset management process is complex, especially when multiple stakeholders are involved. Asset management is either done offline through manual documents or some standalone software is used. For this reason, information is still limited to a particular database or individual.
However, with blockchain's growing role in real estate transactions, the future of real estate could be altered. A blockchain-based Real estate Management System using smart contracts for real estate can facilitate the entire process - from signing a lease to adjusting cash flow and submitting maintenance requests.
- Tokenization
Tokenization is a tool that can be used with blockchain technology. Tokenization is mostly used to divide up real estate assets into digital tokens. This can aid realtors in enhancing security, as protecting the asset is their top priority.
Similar to traditional stocks, any investor can purchase these tokens and claim a portion of the property. These tokens keep transaction histories, give ownership rights, and store regulations. Owners of these tokens can exchange them in the market like stocks because they are immutable. This increases security, lowers expenses, and increases liquidity.
- Decentralization
Future housing bubble crises like the one that occurred in 2008 can be avoided with a decentralized system. A blockchain-based ecosystem makes it far more difficult to commit fraud and other financial crimes, making the entire real estate industry safer and more reputable as a result.
Paul Vigna and Michael Casey, among other fintech writers, have long claimed that a lack of transparency caused the 2008 housing crisis and that more intrinsically transparent technology (like blockchain) could avert the occurrence of such circumstances in the future.
- Reduces Cost
The fields of files and payments have also seen a substantial Impact of blockchain technology on the Financial Services and Real Estate Industry. The process is now time-consuming, difficult, and expensive due to the significant documentation and involvement of third-party middlemen. And when there are mortgages for overseas transactions involved, this effect becomes more noticeable.
By offering verified digital identities for properties, blockchain, a new real estate technology, may now streamline the filing process and bring innovation to real estate procedures. The arrival of cryptocurrencies can also make it easier to use multiple currencies in various locations. Along with expediting the payment procedure, it can even reduce the applicable taxes and fees.
Will Blockchain Technology Eliminate Real Estate Agents?
While it's true that it isn't likely to replace real estate agents, they will always find themselves in a situation where they need to transact money and provide services. A difference is that the focus will shift more towards them providing ancillary services such as legal advice and financial counseling.
More than anything else, the Custom Blockchain Solutions is likely to impact real estate companies' revenue streams by providing them with new opportunities for revenue. This has caused a shift in the types of jobs and industries where people are more willing to work with blockchain technology."It's hard to predict how much-decentralized organizations will disrupt the traditional industry, but we can say that these organizations are constantly looking for freelancers to work with them.
How can Chapter247 Infotech help you Implement Blockchain Technology in your Real estate business?
Blockchain Technology is now widely being hyped and implemented in the real estate industry. It has a lot of benefits, like improved transparency, security, and a simplified process of buying or selling property.
Real estate is taking a big leap into the digital world and it's all thanks to this technology. Government & Industry leaders are already exploring and implementing this technology in their applications, which will result in increased safety, efficiency, as well as transparency.
If you want to incorporate Blockchain Technology into your Real Estate business, but are unsure where to start, Chapter247 Infotech is here for your rescue. Hire the best Blockchain Technology Consulting Services and get the guidance that you require. Connect Today!
