Critical uses of blockchain in the real estate industry

This complexity could only be solved in the past by managing multiple third-party service providers, which necessitated hefty fees. Any industry can embrace a more decentralized supply chain solution with blockchain. The website will assist traders in their bitcoin journey with the best trading tools, fast payouts, and phenomenal customer support. Blockchain technology is providing a new standard for financial record keeping and accounting to create transparency across industries. To trade efficiently, you can use a reliable trading platform like BITIQ.ORG

In short, blockchain creates an audit trail of transactions invulnerable to fraud or tampering and can potentially reduce transaction processing times. With these benefits in mind, let’s look at how critical blockchain will be to the real estate industry moving forward. Real estate is a dynamic ecosystem where multiple parties participate in aspects of the investment cycle, even across borders. 

Real estate transactions are particularly complicated, often requiring numerous parties to execute a single transaction. For example, a real estate investor may purchase a property for $500,000. The property is then sold to another party for $550,000. In the US, each party involved in the transaction (the realtor, lender, and government) requires a fee of approximately $10,000 at closing time. 

Will blockchain be successful in real estate?

In recent news, CNBC reported that the real estate industry faces a global shortage of qualified professionals. This shortage of skilled professionals is responsible for the fact that no standardized course or license is required to enter the field, making it challenging to find people willing and able to work in it. 

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  Real estate agents require a degree, work experience, and licensing; these requirements are expensive barriers to entry into many markets. In addition to the expense of education, real estate agents have additional costs associated with renting office space, paying credit card fees and the unnecessary maintenance of a costly office.  

Through blockchain technology and its decentralized ledger system, the industry has the potential to solve several problems. First, it improves the odds of preventing transactions that were fraudulently rated or were otherwise incomplete. The second benefit would be lowering transaction processing time for buyers and sellers by eliminating intermediaries and reducing fees for everyone involved.

The Real Estate Tokenization:

The true power of blockchain technology can be harnessed and applied to the real estate industry through tokenization. Tokenization allows individuals and businesses to access previously untapped financing markets while providing a transparent record of ownership. 

Blockchain will drive real estate development, enabling transparency and trust throughout the supply chain. An initial coin offering (ICO) will allow investors to acquire property beyond their immediate reach.

The tokenization process starts with converting the asset into its equivalents in digital value. Then, it is on a blockchain network as an intelligent contract capable of storing the value and executing transactions autonomously. 

Issuance of contracts:

In real estate, blockchain technology can have a use case to store and record all real estate contracts as a token on a blockchain platform that is publicly available. e ca This includes information about property ownership or company shares.

Any time a transaction between parties occurs, it will have to be validated by all participants in the network based on consensus. As a result, the transaction will fail and be rejected if the agreement is not at the destination.

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Real Estate Exchanges:

Real estate exchanges are another use case for blockchain technology. While exchanges are a fundamental part of any market, and investors can find them anywhere (stocks, bonds, commodities), there has been no such thing as an online real estate exchange. 

Whether it be the sale, rental, or purchase of real estate, a blockchain-based exchange alleviates the need for an intermediary to complete the transaction. It is crucial as it guarantees transparency and enables all participants to have complete visibility over the status of their transactions at all times.

The immutability of real estate ownership will help resolve many issues that have been plaguing investors for years. In addition, blockchain technology will provide trust in ownership records and allow them to quickly access critical data from anywhere in the world.

Determining the price of land:

Determining the price of land is a complex process. It’s based on several factors, including an assessment of the value of the land in terms of its size and location, as well as the building rights attached to it. In addition, any improvements made by other parties also affect its value. As a result, the only way to accurately determine the value of land is by valuing it based on a thorough inspection, which would involve significant expense.

Blockchain technology and smart contracts will allow this process to get completed faster and more transparently. No longer would we need to rely on a third-party lawyer or appraiser and be held captive to the results they may reveal. Instead, the negotiation process will occur directly among all parties in real-time, with all information being made available at all times.

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