Blockchain Technology and How It Is Finding Its Way into Real Estate Use
Blockchain has always included in discussions regarding real estate and the disruption of existing processes. It wasn't always this way, however; CIO Review explores how the decentralized ledger-maintenance technology has become the trusted platform behind real estate apps, and how it became the preferred choice.
Real estate has been gaining huge benefits from the introduction of blockchain. New and existing players have emerged simply because blockchain had given them the chance to do so. Blockchain had entered the market and set about to disrupt most established practices--making it more vibrant than it's ever been before.
Blockchain helps cryptocurrency transactions--a suddenly-popular trend--because it is transparent, secure, and can be easily accessed by all parties. Client and agent alike can get real-time updates on different transactions because of blockchain and allows instantaneous changes in a properties' data, since it's available online.
It's transparency that makes blockchain a particularly perfect partner, especially in real estate transactions where money is involved. According to Captain Alt Coin, the 2018 edition of the Global Real Estate Transparency Index--as compiled by JLL and LaSalle Invesment Management--pinpointed how over 150 real estate markets and transparent cities have been the most preferred destination by real estate investors. Blockchain is no different.
Transparent environments in these cities accounted for 75 percent of the total real estate investment. Blockchain, meanwhile, is inherently transparent, since transactions can be accessed by both agent and client as a public record. That along makes blockchain a great partner in the advancement of real estate processes.
It's not yet clear how advanced blockchain technology used in real estate is. However, it appears that the future is now, when the development of the Initial Loan Procurement (ILP) means that blockchain companies can readily ask interested investors for funds through legally binding smart contracts.
Real Estate blockchain-powered transactions will also give people more access to cross-continent transactions--even cross-country ones. Two people don't need to meet to complete transactions and a witness can be easily included through simple chat processes. This is how real estate transactions will look like in the future.
The revolution powering the advancement of real estate technology is driven by blockchain technology. Entire enterprises have been built with blockchain as its basis. This is part of the technology's evolution, which means real estate will eventually adopt some more to include blockchain as an integral part.