How Blockchain is Quickly Altering Real Estate

In the last several years, the blockchain has expanded widely into various industries and sectors. Although a close connection exists between cryptocurrency and the blockchain, major corporations that may not support the former are enthusiastic about the latter. One sector where blockchain is just beginning to thrive is real estate.

Investors are always seeking diversity for their portfolios, and real estate is a worthy addition

However, the main problem is the lack of liquidity.  Blockchain technology solves this issue by tokenizing shares.  For instance, every building could have its own token, and investors could buy them as equity.  At any time, if someone wishes to back out, they can sell their shares quickly and easily.

Of course, you are free to keep them as well.  Ideally, this freedom could attract a lot of investors otherwise hesitant to deal with the usual headaches.  Likewise, it could attract investors otherwise hesitant to try crypto due to the partial centralization these real estate services.

Currently, standard real estate investment is not without its problems

The process is steeped in paperwork and rife with fraud.  News about real estate scams are common.  In some cases, people are posing as agents or brokers.  In other instances, buyers, sellers, and investors are cheated by shady contracts or undisclosed problems and damages.  This often means having to pay for legal advice, as well as safety.

To address these issues, the blockchain offers an immutable, public ledger.  It stores information about property history and can use smart contracts to reduce costs and increase efficiency. Smart contracts have a strong track record as a scalable solution allowing two parties to make deals independently.

Currently, there are already a number of companies offering such services

Recently, billionaire investor Mike Novogratz has been advocating for a wider adoption.  And not long ago, Bank of America analyst Kash Rangan predicted that Zillow and Redfin would soon be using the technology.  So far, it has mostly been a matter of existing agencies adopting crypto and the blockchain to offer customers enhanced services.

Therefore, for a truly giant real estate company like Zillow, switching over to the blockchain would be a massive project. Loading data for so many properties would be very expensive. However, Zillow could reduce costs and reap the rewards of blockchain technology in the long run. In all likelihood, it could take a little longer for big real estate companies to fully commit to this technology precisely for this reason.

 

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The post How Blockchain is Quickly Altering Real Estate by Eric Van Orman appeared first on BittPress.