How The Blockchain Will Change Real Estate
Blockchain technology can be used for a wide variety of real life purposes, ranging from finance to databases and transferring ownership. One area often overlooked in this regard is the real estate market, even though this industry stands to gain a lot from distributed ledgers. Transparency, removing the risk of fraud, and speeding up the process associated with buying or selling a property can all be achieved through the blockchain. The main question is: who will be the first to jump on this innovative protocol?
Everything Goes Smoother On The Blockchain
It goes without saying that buying or selling real estate can be a very tedious and painstaking process. Not only is there a ton of administrative work to deal with, but there is always the chance of a buyer or seller backing out of the deal at the last moment. Furthermore, why are these real estate prices at the level they’re at that time? Some more transparency would help clear things up, and the blockchain can provide exactly that.
The biggest hurdle to overcome is speeding up the real estate process in general. Rather than making an appointment, waiting for the agent to show up, filing and verifying paperwork, and signing contracts, a smoother experience is needed. While all of these tasks will still need to be completed, there is a notable amount of time to be gained from using distributed ledger technology.
Administration could eventually become the downfall of our society as we know it. Even though it is important to create records of every meeting and transaction taking place, we are now living in a digital age. Time is money, and a lot of time is wasted on archaic administrative processed, which are utterly complicated and cumbersome.
One thing most people tend to overlook is how the real estate business is subject to fraud. There is an excellent reason both buyer and seller use an escrow service provider when dealing with such large sums of money. Despite precautions, the fraud rates cost the real estate industry several million per year, mostly due to forged documents and duplicated notary stamps.
Embracing The Blockchain One Step At a Time
The blockchain provides a technology that is incorruptible, as the transfer of funds is logged in real-time, and ownership can be transferred in a matter of minutes. Replication of digital ownership certificates is not possible, effectively reducing the fraud rates to as close to zero as humanly possible. Additionally, this protocol would allow for consumers to create a digital identity to speed up the mortgage process and transfer of ownership.
That being said, the change to a blockchain-based solution in the real estate business will not happen overnight. While the technology offers some exciting prospects for the future, streamlining such an innovative protocol with a very administration-based industry will take several years. Nonetheless, there are interesting prospects on the horizon for distributed ledger technology.
What are your thoughts on the future of blockchain technology in real estate? Let us know in the comments below!
Images courtesy of Shutterstock, Red River