Blockchain for Real Estate

Blockchain technology in real estate is a computerized ledger that democratizes access and

increases confidence in the market by serving as a single source of truth. These developments

have significant repercussions for real estate investors. Blockchain is a cutting-edge technology

that can disrupt many industries, including real estate. By offering an unalterable source of truth

for information, Blockchain is a digital ledger that decentralizes access and encourages trust by

providing a single unalterable source of truth. Blockchain, which is sometimes mislabeled as a

cryptocurrency such as bitcoin, can completely transform the real estate sector in several

important ways. You may use our real estate applications for various purposes, including legal

contracts, finance, and the sale of a house, among others. The use of blockchain technology in

real estate transactions and leasing can provide an extra layer of credibility to the process. The

automation and digitization of traditional real estate activities will, in the long term, reduce the

amount of time and effort necessary to buy, sell, lease, or finance this commodity. (Cartier, May

22, 2020)

The introduction of blockchain technology in real estate transactions has important ramifications

for agents and brokers. Blockchain-enabled smart real estate contracts can enhance due diligence

while speeding up the lease process and saving time and money. Using blockchain technology,

one may authenticate one's identity and income. The Blockchain can regulate the whole process

of real estate transactions. Any transaction that involves a digital ledger may be verified and

codified using a digital ledger. Most real estate transactions are completed in person, with many

parties involved. Because of the advancements in blockchain technology, this is no longer the

case! The development of smart contracts on blockchain platforms has made it possible to
tokenize and exchange real estate in the same way that cryptocurrencies such as bitcoin and ether

can be exchanged. Traditional real estate technology was primarily concerned with creating

interactions between buyers and sellers and advertising available properties for sale on the

market. Real estate trading platforms and online marketplaces may provide more comprehensive

support for real estate transactions if blockchain technology is used. That is demonstrated by the

work of ATLANT, which has developed a blockchain-based platform to make real estate and

rental property transactions more convenient. Trading real estate, like stocks, on an exchange and

conducting online transactions is made feasible by tokenizing the real estate. Deloitte found that

blockchain technology may soon affect their responsibilities and level of engagement in real

estate transactions. (LIEBKIND, March 22, 2020)Thus, new platforms may one day take over

duties such as listing, payment, and the preparation of legal documentation. Buyers and sellers

will be able to spend their money more wisely due to eliminating intermediaries since they

would save on fees and other expenditures.

In the financial world, when a transaction takes that long to execute, it is referred to as a non-

liquid asset. Even though cryptocurrencies and tokens may theoretically be exchanged for fiat

currency through exchanges, this is not the case in practice. On the other hand, real estate may be

traded as a currency with relative ease. Even before an asset is sold to a buyer who can purchase

the item in its entirety, some value may be derived from it. Because it is a decentralized

technology, Blockchain instils confidence and provides peace of mind. The data stored in the

Blockchain can be viewed by any network member, making it unchangeable and transparent for

all parties involved. Even though real estate is precious, most of the world's real estate is owned

by wealthy individuals and large corporations. Because of the introduction of blockchain

technology, more people may take advantage of a market where transactions are more open, safe,
and fair, which will benefit everyone. There may come a day in the future when all real estate

transactions will be handled entirely on a blockchain-based platform, and this is something to

look forward.

In terms of speed and security, blockchain technologies linked to the real estate market have the

potential to reduce the risk of fraudulent activity significantly. This new technology impacts all

phases of the real estate transaction since it can reduce the time that elapses between signing the

preliminary sales agreement and submitting the deed to the notary public. Future advancements

in digital technology may make it possible to conduct real estate transactions, such as purchasing

new residences, using digital currencies. On the contrary, some companies are already bidding

on buying and selling real estate using cryptocurrencies. As a result of the rush of new sources of

money, internet markets are sprouting up everywhere. Some investors believe that these new

payment methods may be used to get over the limits on international transfers imposed by some

countries, which are necessary if buyers desire guidance and trust in the face of such volatile

currency markets. (Redolfi, Oct 27, 2021)The introduction of blockchain technology has

significantly increased the real estate business's speed. Real-time data and speedy confirmation

are provided by the Blockchain's access to all of the information contained within it, making a

property's title papers, land registration, technical data and surveys, co-ownership information,

and other information readily available at any moment. Real estate experts and investors alike

will find this to be a game-changer in their respective fields.

In recent years, the expansion of online marketplaces has altered the commercial sector; the

Blockchain can do the same for the real estate industry, particularly information flow and

dissemination. A broad spectrum of real estate professionals, from those involved in

recordkeeping and funding to those engaged in transactions to those interested in investing and
asset management, are becoming increasingly concerned about the possible influence of the

Blockchain on the economy. (Daley, December 31, 2021)Blockchain has huge ramifications in

real estate. Reduced intermediaries, more confidence between parties, better recordkeeping and a

simplification of contracting and leasing might improve efficiency. That is a significant shift

because many of the components are new. The real potential of Blockchain in real estate has yet

to be realized, despite some practical examples. All of those mentioned above should be

evaluated by investors looking to jump on the industry's anticipated changes.

Works Cited

Cartier, B. (May 22, 2020). Blockchain Real Estate: An Investor's Guide. Retrieved from
https://www.millionacres.com/real-estate-market/real-estate-innovation/what-is-blockchain-real-estate/

Daley, S. (December 31, 2021). 19 Blockchain Companies Boosting the Real Estate Industry. Retrieved
from https://builtin.com/blockchain/blockchain-real-estate-companies

LIEBKIND, J. (March 22, 2020). How Blockchain Technology is Changing Real Estate. Retrieved from
https://www.investopedia.com/news/how-blockchain-technology-changing-real-estate/

Redolfi, A. (Oct 27, 2021). The Future Of Real Estate Transactions On The Blockchain. Retrieved from
https://www.forbes.com/sites/forbesbizcouncil/2021/10/27/the-future-of-real-estate-transactions-on-the-
blockchain