Real Estate is an industry that started using IT technologies actively within the last 10 years. The industry’s market revenue as of September 2021 was different in various global markets.
For instance, the largest Real Estate market growth was observed in North America – $1.59 trillion. The second place belongs to the Asia Pacific – $1,50 trillion. In Europe, the Middle East, and Africa, Real Estate counted for $797 billion. And the lowest market revenue appeared to be in Latin America – $51.5 billion.
With the evolution of the Real Estate industry and the trendy advancements, it became essential to use software development technology in the domain as well. What is the industry implementing to stay competitive in the market? Mainly, automation of Real Estate processes, personalization, customization, and security. Here the latter shifted towards blockchain. What does blockchain in Real Estate do? What are the benefits of blockchain technology in Real Estate? Let’s explore!
What is Blockchain in Real Estate?
Have you heard about blockchain? Where did blockchain come from?
The first to introduce blockchain technology was Satoshi Nakamoto in 2008. It aimed to transfer cryptocurrencies (bitcoin, ether, etc.) among the public. Using blockchain in Real Estate became possible starting from 2016. Blockchain started initial coin offerings (ICOs) and security token offerings (STOs), also sometimes called digital security offerings (DSOs). So,
Blockchain is the system that works with transmitting digital information. It records data to make it impossible to hack it, change it or compromise the system itself. So, most of the global transactions are made using blockchain technology. Especially, the ones involving finances (cryptocurrencies). Most of the Real Estate transactions have always been made offline, i.e. face-to-face. But, recently, and with all the Covid-19 pandemic, online transactions became a priority. So, the industry was introduced with smart contracts. What did these contracts change? Perhaps, Real Estate became a token that is now transferred online like cryptocurrencies. And, on top of it, these transactions are extremely secure.
Traditionally, Real Estate has been all about making buyers and sellers connect via listings. But, with the introduction of blockchain platforms, this aim became easier to achieve. Also, brokers, lawyers, and banks that belong to the industry can soon be gone. But would they? Can humanity experience listings, payments, and legal documents on a blockchain platform? So, there is a possibility intermediary might no longer exist. What does that make the Real Estate transaction like? No fees, commissions, and a faster process in the end. Is it our Real Estate future?
Where does blockchain in Real Estate sector change the industry?
- In money transfers
- In property, transaction, and title ledgers
- In smart contracts
- In voting
The way any transaction is being carried out is precisely explained below:
Users request transactions, which are later sent to a peer-to-peer network of nods. The nods validate transactions and encrypt them. Then these transactions combine with the other ones in the new block of data. And this newly created block forms the blockchain system by adding it. Sounds easy and innovative!
What are the benefits of blockchain in Real Estate?
Giving extra security, the easiness of digital asset transfer, and many other features are not the only benefits of blockchain in Real Estate. There are also the following advantages:
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