The emergence of blockchain technology has dynamically changed the working of various industries the real estate is no exception to this. With the real estate business rising at jet dynamic speed across the world, the sector is understanding the relevance of blockchain technology for its development.
The introduction of blockchain technology in the real estate business has controlled the dominance of corporate houses and big property owners. And now the terms and conditions of the real estate market are decentralized.
The transactions in the real estate business are now more transparent, performed instantly, and minimize the use of excessive paperwork. It would be interesting to know that with an increasing practice of blockchain technology, most of the transactions are now done through Bitcoin. The use of cryptocurrency Bitcoin now speeds up the process of payment but also minimize the charges in the transactions.
The blockchain is a ledge system that encrypts every transaction which takes within the network. Here every block is connected, and any transaction recorded once cannot be edited or modified. There is no place for the third party in the transaction and the whole process is decentralized and not in the control of one centralized authority.
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How does blockchain help real estate?
No Necessity of a Middleman
The days have gone back when a middleman is playing an important role in finalizing the deal between the buyer and the seller. Till, a few years back, anyone willing to buy the property had to take help from a broker to buy a property. The use of blockchain technology eliminates the need for a middleman or a broker. This is due to the use of cryptocurrencies like Bitcoin or Ethereum in the transaction. The buyer and a seller don’t have to pay any fee or brokerage to finalize the deal.
Controls the Fraudulent Practices
There are incidents when people adopt fraudulent practices to take the property of a person unethically and illegally. They get the fake documents of the property are developing on their name and claim for its ownership. Doing this is very easy. The use of blockchain technology in the real estate business assures that you have purchased or sold the property with full evidence of its ownership.
The use of blockchain technology helps in saving lots of money in the transaction. The use of this technology eliminates the need for a broker or a middleman. The buyers don’t have to pay any extra money to the broker.
With the help of blockchain technology, an investor can sell the shares of his property simply at cost-effective prices. You have the facility to convert your assets into marketable securities equivalent to their market value. Liquidity helps you in simply accomplishing the transaction. With the help of blockchain technology, investors can change their portfolios according to the existing conditions of the market. It is because blockchain technology makes the flow of capital easier. The investors can decide to sell or buy the property without any fraudulent practices.
Only a few people prefer to buy property in cash without any loan or keeping their assets as security. The process of applying for the loan, getting approval and finalizing other formalities are time-consuming tasks. With the help of the Smart Contracts feature available in blockchain technology, the process is accomplishing simply. But developing Smart Contracts is not an easy task. For this task, you need to hire an expert blockchain development services provider to finish the tasks. The use of Smart Contracts facilitates you to develop a Digital ID either as a buyer or a seller. With the help of smart contracts, it is easier to transfer ownership simply.