The concept of blockchain has gained huge popularity in recent years. Understanding, its importance, more and more industries are now trying to enjoy its benefits. Now the question that arises is “What is Blockchain?” In simple words, it is a database related to some information that is recorded in a computer system. This database is recorded in a table format so that it is easier to access any information without any difficulty. It is also to edit the data according to need.
But there is a huge difference between the data stored normally and stored in blockchain. The data of blockchain cannot be edited or hacked. To make any change in the data it is important to take permission from all the members linked in the chain. This not only protects the data but also increases its reliability.
A blockchain-based system provides fully transparent information on rental value, payment frequency, tenant and property history, and contractor agreements.
Benefits of Blockchain Technology in Real Estate:
The use of blockchain technology in real estate offers lots of benefits starting from the transfer of title to price. With the help of blockchain, it is easy to complete complicated transactions in a simple way. The most important benefit of this technology in real estate is that you can view the property without any help from the agent. Moving ahead, the use of this technology makes the process of buying a property simple and protected from any complications.
Some of the benefits of using blockchain technology in the real estate business are:
Normally there are two parties involved in any real estate contract. One is the buyer and the other is the seller. The terms and conditions are mentioned mutually. In blockchain technology, these terms and conditions are decentralized and shared between the concerned parties. The codes of blockchain keep a watch on the processing of the contract. Every transaction that takes place within the parties is easily accessible. Some of the items stored in the blockchain are letters of intent, closing documents, offer sheets etc. Signing a smart contract is instant and simple than paper contracts. Moving ahead there is no need of meeting and negotiating with the broker or a middleman. In short, every activity is performed online in a secure way.
It is Easier to Access Investment in the Property:
Investment in real business is time-consuming. Whether you are buying a single home or investing in a property with multiple owners. You need to meet everyone associated with the dealing individually. Moving ahead you also need to be financially strong before making any investment. With the help of blockchain technology, people willing to invest in a particular property can buy tokens and become co-owners. This whole process is known as tokenization, making everyone equal owner of the property. The use of tokenization makes the real estate business more flexible and makes it easier for the owners to sell or buy their shares instantly and simply. Going through this benefit more and more investors are attracted towards the use of this technology. Moving ahead the decentralization of all the activities make this technology more authentic and reliable.
Transparent and Secure:
Nowadays, most of the properties are owned privately and for which there is no centralized record available. In the real estate business, it is difficult to track the record of such properties. Making a decentralized database of these properties makes it easier to track their existing status. Moreover, due to the decentralization of data, it is impossible to make any change in the data set.
To enjoy the benefits of blockchain technology. There are lots of blockchain service providers. That can help the real estate business operators to introduce this technology in their business and enjoy its benefits.