Blockchain technology has disrupted almost every industry in the world. Subsequently, widespread application across the different industries of the world has made it very difficult to find a particular industry where blockchain technology has not been put into work. Since its inception, cryptocurrency has profoundly impacted the payment and remittance system. Initial coin offerings and other kinds of investment opportunities have now been made sophisticated with the help of Blockchain on meta-profit.app. Moreover, the supply chain industry has depended on Blockchain already. So, it is very sophisticated to see that the Blockchain has entered everywhere and revolutionized almost everything.
Real estate was earlier not the industry expected to have the disruption through the Blockchain, but it did not manage to escape the blockchain disruption. Previously, making real estate transactions was very complicated, but now, it is very sophisticated using Blockchain technology. The people who traded in the real estate had preferences for making the real estate transactions by meeting personally and face-to-face engagements. But, today, things have been changing. With the introduction of smart contracts in real estate through the Blockchain, people now can rely on virtual transactions. They can also tokenize the real estate, and they prefer transacting the real estate through bitcoins.
There are multiple advantages of Blockchain technology in real estate; we will specify a few of them further.
- Platforms and marketplaces
The real estate industry was always Paradise by the availability of marketplaces for selling and purchasing these commodities. But, there was no fixed place where anyone could visit and purchase the amount of land or property they wanted. Well, today, it has been made very easy by the implementation of Blockchain technology into it. With the help of decentralized Blockchain technology, now, companies can create their real estate applications. So, the people who want to trade or purchase real estate for their use, we can easily do so with the help of the decentralized platforms. Moreover, there is a higher degree of security in the payments making people trust the system.
2. No intermediaries
The involvement of multiple intermediaries in real estate transactions can be very drastic. It can sometimes lead to false information and also can deteriorate security. You cannot trust your real estate documentation to any person in the physical face-to-face meetings. So, there was a requirement for somewhere safe to make real estate transactions, none other than the Blockchain. Through the Blockchain, every intermediary is eliminated from the real estate transaction, making it a safer place to purchase and sell.
3. Liquidity
The amount of liquidity you need to make a real estate transaction needs to be very good. If you want to purchase a piece of land, you would have a large amount of cash in your pocket. So, liquidity can sometimes be a significant issue when selling properties. Some properties are not readily saleable, and therefore, here comes the use of Blockchain. When every property is listed on the decentralized platforms, anyone interested can purchase it. In the physical world, you may not find such a large audience for purchasing your property and providing you with funds.
4. Fractional ownership
Whenever there is a large area of property available for sale, people are interested in it. However, they do not have adequate funds to purchase all of it, and therefore, they wish that they can purchase a small fraction of it. Well, through the Blockchain, it is now possible. By the implementation of Blockchain, this large amount of properties can be converted into non-fungible tokens. But, small proportions of the land must be converted into different non-fungible tokens. Doing so will make a tiny fraction of a vast land available for sale to marginal investors.
5. Cost
Cost is a very significant factor when it comes to real estate. The intermediaries involved in the purchase and sale of real estate charge you a very high amount. Moreover, you can be scanned by any other person selling a particular piece of land. So, you must know the actual cost of purchasing a real estate item. Through the Blockchain, you can get transparent information about the property you want to purchase. So, there is no room for unnecessary costs or scams with the Blockchain. Moreover, the real estate industry is made safer by Blockchain technology.
READ MORE: Who are the beneficiaries of Blockchain in the real estate industry?
