As per a study conducted by PwC, “Blockchain technologies could boost the global economy US$1.76 trillion by 2030 through raising levels of tracking, tracing and trust.” Blockchain is truly one of the most innovative technologies of the recent decade. It’s raising profound questions about how the world will be shaped by the changes it will bring. It has already started making waves in many industries. Every business is looking for ways to make its processes more innovative and efficient. And real estate is no different.
There are several ways the Real Estate industry can leverage blockchain to make its business processes better.
This blog will look at the benefits of using Blockchain technology in Real estate.
More transparent land ownership
It is fascinating to see how investors are exploring the untapped potential of Blockchain technology. In a Forbes article, Georgia is reportedly the first country to use Blockchain technology to record land titles.
- The project is part of a collaboration between the Georgian National Agency of Public Registry and BitFury Group, a well-known data infrastructure provider.
- This pilot project marks a significant step forward in pushing for a more transparent system of land ownership.
This is a huge deal in a country where corrupt land ownership registries have led to a crumbling banking system and a significant capital flight.
Processing finance and payments for Real Estate
With blockchain, financing banks and borrowers can eliminate redundant processes and simultaneously update operations. Thereby reducing errors and risk.
During the loan application, documentation, due diligence, and servicing stages, blockchain can simplify financing procedures, and ensure that information does not get lost.
China CITIC Bank adopted this technology for the first time in China for the CITIC District Bank. It also created a revolution in the financing industry.
Enable smart decision-making in Real Estate
Blockchain can serve as a link between commercial real estate businesses and the technology systems of other participants. How? In a leasing transaction by offering a more open and shared database for all parties participating in a leasing transaction.
It’s already being used in real estate in Sweden, where the Swedish Land Registry authority, The Lantmäteriet, is using blockchain to record property transactions in a more secure, efficient, and transparent way.
Efficient and reliable property search
The real estate industry is a very traditional one. In the U.S, buying or selling a home or property involves the local Multiple Listing Service (MLS). This would be the primary location where buyers and sellers seek out their next home.
- The MLS is controlled by the local real estate brokers, who have complete control over which listings are made public and which are kept private.
- Since these local brokers control these MLS databases, the MLS for each real estate brokerage operates independently.
- A blockchain-based MLS would enable data to be distributed across a peer-to-peer network to allow brokers to have more control over their data, along with increased trust, as listings would be more freely accessible.
- The blockchain would also allow for more efficient data sharing and transmission. Information could be shared in real-time across a network and be andle realtors without requiring an intermediary.
Access to global asset distribution
There are plenty of crowdfunding sites like Estateguro, Fundrise, and RealtyMogul where people can participate in property investing pools and get a yearly return. However, they have their limitations. Blockchain-based crowdfunding organizations are able to access more markets and benefit both countries and individuals.
Tokenization of Real Estate Assets
Imagine a world where Real Estate assets can be traded just like crypto. It might not seem possible yet, but it could eventually happen! If Real Estate assets were tokenized in the form of NFT, it would make them more accessible than ever before. The potential for this innovation is huge- not only does trading these Real Estate ‘tokens’ offer a new way to invest but also greater liquidity will lead towards increasing values over time!
Automation through Smart Contracts
The real estate industry is changing forever with blockchain. The technology could make a world of difference for homebuyers, sellers, and renters alike! With smart contracts, the need for a middleman – an agent or broker – could eventually disappear as this new technology takes over all aspects of buying and selling property. This would expedite the buying and selling process and make transactions extremely efficient and cost-effective.
Final thoughts
We have all heard about the great benefits of Blockchain technology and how it will help to revolutionize the real estate industry. And it’s relevant since the real estate industry is under the spotlight due to its rapidly changing nature over the last few years.
There are concerns about over-reliance on technology. But, that’s not the case at all. Blockchain will only boost the Real Estate industry and satisfy property investors, real estate agents, and renters.
Blockchain is revolutionizing the Real Estate industry and will no doubt make it easier than ever before to invest.
About Peerplays
We are dedicated to empowering people’s freedom to create greater outcomes, giving them control over how they own and collaborate worldwide. The core foundation for Peerplays success in 2023 relies primarily on the release and promotion of mechanisms incorporating decentralized ID, gamification, and ‘handshake’ like onboarding that is easily accessible to people who use smartphones. At Peerplays, we are on a mission to revolutionize the world of blockchain technology and empower individuals with the freedom to take control of their digital lives. To achieve this ambitious goal, we are constantly on the lookout for the most talented individuals who share our passion for innovation and our commitment to decentralization. If you believe in the transformative potential of blockchain technology and are eager to contribute your skills and expertise to this groundbreaking project, we want to hear from you.
