How Blockchain Technology Is Transforming The Real-Estate Sector?

Blockchain can be defined as a peer to peer ledger technology that includes encrypted blocks with all the important transaction records. Each of these blocks are connected to each other in the form of chains and it is impossible for anyone to modify or erase them. Any person out there can download these blockchains onto their high speed computers and become a part of this network.

Role of these high speed personal computers is massive as it allows you to validate & add transactions which allows blockchains become a distributed system with no baggage of central authority over it. "Mining" is the name of the process given to validation of transactions. Reward earned over validation of transaction plus adding that to a block is actually Bitcoin. There is no central authority control over it.

The blockchain technology has taken the industry sector by storm in recent times. It has overhauled the name and fame of some major industries and after looking at its effect , some real estate companies also wants a bite of the cherry by including blockchain in there system.

Rise of the real estate sector is evident and some of the surveys done in recent times produced the stats that support this cause. A revenue of $200 billion was generated by a total of 210,000 companies that specialize in residential brokerage and management.

The word out there is that block chain is not going to prove that successful in real estate sector. But if it has to be successful than the sector has to go through some major overhaul. But with the plus points like increased speed transactions, more efficient transparency, reducing the workload in terms of paperwork, it certainly can turn things around.

How Blockchain can turn around Real Estate sector?

In many a ways, Blockchain has proved to be significant for this sector and here we have mentioned a few of them.

Reduction in forgery

Illegally snatching someone's property in real estate or real life is not that shocking as it has increased in the magnitude with the passing time. It has become more of trend where a person presents false documents and claims to be the real owner of the property and he can do this in various ways and with minimum ease now-a-days.

But with the entry of blockchains, the factor of forgery has been thrown out of the picture. This is because blockchain contains evidence of you purchasing or selling a property with proof of exchange, ownership and transaction. With the digital document trust, the extra load of paper works has also been reduced. For the actual proof that a person is actual property owner, it uploads the documentation.

Undermine the role of an intermediator

Role of an intermediator in the arena of real estate is very important it strike deal between interested parties. The brokers take a good share of amount when he helps you buy or sell a property, as a part of his service.

But with the introduction of blockchain the role of middlemen has been eliminated. As you are doing the trade in terms of cryptocurrencies like Bitcoin or Ethereum, you don't have pay the extra fees for a deal being finalized.

Maintenance of Transparency

It is very rare that people buy a property without the assistance of a loan or mortgage. And for the people who turn to banks for availing loans, has to go through a rigorous process to get one.

It usually takes a long period of time for your loan application to be processed and for the amount to be sanctioned. But in blockchains you have the leisure of smart contracts that help you reduce the extra headache. Though it’s not as simple as you think it is. In order to get the best possible outcome in this matter, you have to contact an experienced blockchain developer.

Liquidity

Every person associated with any form of business wants his investments uncorrelated with S&P more of in a partial way, which will allow him to develop diversified portfolio. This is certainly offered by the real estate. But the effect of it would be, lengthier hold periods varying from 3-10 years in accordance with the investment strategy. And because of these lengthy hold periods, your liquidity options goes up for a toss.

Either you will get no liquidity and even if you some chunk of liquidity, it will arrive with some type of penalty. Secondary market could decrease your restlessness regarding liquidity as it offers the much needed liquidity. It give power to the already existing investors to break out of whenever they feel the need plus it also opens the doors for new investors to try their luck. If a person register some investments in blockchain, then it will become easy for him to trade shares among investors.

Ensures Reliable Voting

People living in a particular building, follow the method of voting if they have to come to a conclusion regarding an important decision in terms of infrastructure and maintenance. Blockchain ensures that this voting done between a set of people is reliable and unbiased.

Cost Effective

By validating transactions via blockchains yourself a lot of money. As we have already shared that it has eliminated the role of mediator, it becomes cost effective as you are not bounded to pay any extra amount.

In this way interested users can view it and also verify it.

Now let us talk about the process.

You can get a digital ID developed for a particular property as a seller or a buyer, it makes the transference of ownership a lot easy and smooth. Another benefit of this feature is that this is not possible to replace, erase or tamper them as they get permanently stored.

Conclusion

Blockchain has been boosting up a lot of industries and real estate is also going with the flow. It has reduced the burden from the shoulders of investors by rescuing them from the traditional method of old age property investment. For more information about real estate IT solution development services and blockchain powered real estate mobile app development, Please visit Octal IT Solution