Why The Blockchain A Big Game Changer For Real Estate Industry
Blockchain has shown that it has the potential to change every type of business. The new technology in real estate has made it clear that it can be used for more than just cryptocurrencies and could be just what the industry needs to solve its problems.
As a result, blockchain technology has spread to many different fields, even the most traditional ones like real estate.
The blockchain is the driving force behind a disruptive change in the real estate market. What used to be called a “pen and pencil” business is now starting to grow on a global scale, with better and longer-term results. This has led many entrepreneurs and traditional investors to want to learn more about how blockchain can be used in real estate. In this article, we will talk in depth about something.
How the Real Estate Industry is Changing with the Adoption of Blockchain?
Using blockchain technology can help in a lot of different ways in the real estate business. Some of the most common places where blockchain development services are being used to make changes are listed below.
1. Property Research
Multiple listing services like Zillow are used by brokers, property owners, renters, and buyers to look up information about any property.
You have to sign up for these platforms and pay a lot of money. Also, the property information they give is often wrong, out of date, or skewed in some way. This makes the process less efficient and often leads to disagreements.
But all of this can be stopped by using a real estate app that is based on Blockchain.
With a blockchain-backed application, data can be shared by everyone in a P2P network. It also gives brokers the chance to get more options for monitoring data and, in the long run, helps to lower the costs of doing so.
2. Finance Evaluation
Most of the time in the real estate business is spent doing research before buying or renting a home. Several middlemen are involved in checking property documents to make sure there won’t be any legal, technical, or financial problems in the future.
At the moment, all property information is kept on paper, which means that anyone can easily change or lose it.
But if blockchain technology is used to make real estate apps, this subdomain can also be made better. All property-related papers can be kept digitally on platforms that are powered by blockchain. Anyone can access them, but they can’t be changed. This will make the process of doing due diligence and evaluating finances faster and less likely to be wrong.
3. File and Payments
Files and payments are also affected by blockchain in a big way in the real estate world.
At the moment, the process is long, hard, and expensive because there is a lot of paperwork and third parties are involved. This effect is getting bigger when mortgages or international transactions are involved.
Now, blockchain, the new technology in real estate, can make the filing process easier and bring new ideas to the field by giving properties digital identities that can be checked.
In the same way, the use of different currencies in different places can be made easier with the help of cryptocurrencies. It can even cut down on the taxes and fees involved and make the payment process easier.
4. Property Management
In the traditional real estate market, property management is a very complicated process, especially when there are many people involved.
The property is either managed offline with paper forms or with software that is separate from the property. This means that the information stays in one database or with one person.
But the future of real estate could be different if blockchain is used more and more for property deals.
Using smart contracts, a blockchain-based property management system for real estate can make the whole process easier, from signing lease agreements to managing cash flow to filing maintenance requests.
A smart contract can set up rent payments between a landlord and a tenant in an easy and automatic way. When the lease is over, the security deposit can be transferred back to the tenant’s account automatically by the smart contract.
5. Deed Management
Deed management is another area where blockchain is changing the real estate apps market.
At the moment, property titles are written on paper. Because of this, there are more chances of mistakes and fraud. In fact, the American Land Title Association has said that during the transaction process, 25% of all titles are found to be wrong.
If there is a flaw, it is against the law to move forward with the deed management process until the problem has been fixed. This means that property owners have to pay high legal fees to make sure that their property titles are correct and real.
This problem can be easily fixed by using blockchain technology in the real estate industry to create digital records that can’t be changed. This makes the whole process clear and safe.
6. Real Estate Investing
Last but not least, tokenization and fractional ownership can make investing in real estate easier on a blockchain-based platform. Well, most businesses don’t know how to tokenize real estate, but some are doing it on a larger scale.
Tokenization is the process by which the owner of a property can give digital tokens to those who have a stake in it. Using blockchain, they can all keep track of their investments because each transaction is time-stamped and can’t be changed.
Using blockchain technology, this idea of “tokenizing” real estate can make it possible to reduce the risk of fraud in the industry.
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Here are some Blockchain-Based Real Estate Companies:
A few big companies that have been in business for a long time are betting on the growth of tech and forming partnerships to make high-quality systems for better real estate transactions. Here are some real estate companies that are making blockchain more than just a buzzword.
UBITQUITY is a SaaS (Software-as-a-Service) blockchain platform that helps keep track of the lifecycle of any property. The platform gives clear proof of ownership to title companies, the government, and value-added resellers. And in this way, use the benefits of blockchain, such as faster title searches in the future and more openness.
ATLANT is an ICO that was started in 2016 and is backed by blockchain. It makes it possible to tokenize real estate ownership and P2P rentals.
Propy is another real estate company that uses blockchain technology to give people better opportunities and to show end users the many ways in which blockchain can help the real estate industry. The company offers a global real estate marketplace where buyers, sellers, brokers, and notaries can meet and use the power of smart contracts for real estate to make sure that deals go smoothly.
PropertyClub is one of the real estate companies that uses blockchain. This changes how we think about the role of blockchain in real estate development. It uses smart contracts for real estate to make digital transactions in the real estate ecosystem using cryptocurrencies like Bitcoin or PCC (PropertyClub Coin), which improves the customer experience.
Harbor is a digital platform that uses blockchain to create a set of tokenized securities that are backed by real-world assets. This platform was started in 2017 and makes sure that tokenized security works with existing trade security laws, depending on where they are working.
RealtyBits is another platform for investing in commercial real estate in the United States. It is backed by Y-Combinator and uses blockchain technology. It was started in 2018 and helps real estate investment funds raise money from verified and authorized investors in a way that is easy, legal, and cheap.
Brickschain is a platform for managing data that gives a digital overview of the main parts of the building supply chain. It is also known as Briq. It makes it easy to add protocol layers to manage the flow of building materials and, eventually, to speed up the process of building real estate.
SelterZoom is also a real estate platform that works in real time and uses the blockchain to make transactions and management easier. It lets users keep track of their offers, get rid of paperwork, and do any transaction through a mobile app in real time.
9. The LendingCoin
This company started up in 2017 and uses a P2P-driven funding model to look into how blockchain could be used in commercial real estate.
The LendingCoin lets you pay with its token and also encourages the resulting monthly payments through any refinancing done on the platform.
So far, we’ve seen that blockchain is bringing new ideas to real estate through its transparency, ease of use, and security, among other things. Several companies have already built the technology into how they do business, and many more will follow suit in the coming years.
This makes it clear that blockchain is the future of real estate, and ignoring it won’t be an option if you want to stay in the market. Something that shows it’s time for real estate companies to hire a blockchain development company and update their business model.
So, let’s talk about how to incorporate blockchain into your real estate business model.
How to Use Blockchain Technology in Business Apps for Real Estate?
When it comes to investing in Blockchain app development for real estate, you can do one of two things:
1. Use LISK to make a smart contract.
LISK is a platform for building Blockchain apps that works as a PaaS. (Platform-as-a-Service). It has operating systems, databases, infrastructure for the cloud, and a runtime environment for programming languages. This lets you use your own code to make a side chain or a cryptocurrency token.
2. Make a real estate platform backed by Ethereum
In this way, the Ethereum platform, which has reached the Ethereum 2.0 level, can be used to build a blockchain platform for real estate.
Both ways are profitable when it comes to how to build a real estate app on Blockchain, but to get the best return on investment, it is best to contact a reputable Blockchain software development company.
When it comes to real estate, blockchain brings a new level of transparency, security, and ease to the buying and selling process. Real estate is making a big jump into a digital world that is not centralised. Industry leaders and governments are looking into blockchain and putting it to use in real estate applications. Blockchain and other new technologies, like Big Data and artificial intelligence, will be used together in the future of real estate. This will bring a huge change to the old ways of doing things in real estate.
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