• Blockchain technology can be used to make real estate transactions more efficient, transparent and accessible.
• Tokenization could help reduce minimum investment amounts and open asset discovery.
• Smart contracts allow for mortgages to be issued directly without going through a bank.
Real Estate and Blockchain
The use of blockchain technology is an effective way to make real estate transactions more efficient, transparent and accessible. Numerous well-known investors in America have traditionally invested heavily in real estate as it is seen as a good source of long-term wealth. A report from Citigroup states that due to the multiple players involved with overlapping data, blockchain could work as a single source of truth while tokenization could reduce minimum investment amounts and open asset discovery.
Smart Contracts for Real Estate
Trevor Bacon, co-founder and CEO of real estate investing platform Parcl, believes that putting real estate on the blockchain would ensure its future as a yield source through decentralized means. He explains that smart contracts are an efficient way of issuing mortgages directly instead of going through a bank, as they are governed by software rather than people. This allows for speculation, hedging, betting and trading on real estate prices much like stocks or derivatives.
Real Estate Accessibility
For over a year now, access to real estate has been virtually inaccessible due to restrictions put in place due to the COVID-19 pandemic. This has led many people who were hoping to invest in properties being unable to do so up until recently when restrictions have begun slowly lifting across various parts of the United States. With blockchain technology becoming increasingly popular amongst businesses looking for ways to improve their operations, it makes sense for them to consider how best they can incorporate this technology into their processes related to buying or selling property assets too.
Advantages of Integrating Blockchain
Integrating blockchain into the process helps keep track of all property ownership accurately while providing faster transaction processing times compared with traditional methods used today which may take weeks if not months depending on where you live in the world. It will also give buyers greater control over their investments with better transparency from start to finish so buyers can be sure they’re getting what they paid for without any third parties involved who might try taking advantage during the transaction process itself such as brokers or agents who might add additional fees onto already expensive assets like these ones tend to be anyways!
Conclusion
Overall there are plenty advantages that come with incorporating blockchain into your real estate processes which is why it’s become such an attractive option lately despite only being around since 2008 – just thirteen years ago! From increased efficiency thanks largely thanks its distributed ledger capabilities through reduced costs associated with intermediaries normally found within these types transactions; implementing this new type technology definitely looks like something worth considering if you’re looking at investing into properties soon!