The Progress of Blockchain in Real Estate

If asked two decades, you would have thought have thought the influence of blockchain in real estate would be this huge. The offline real estate transactions that involved face-to-face interactions with numerous parties are almost becoming extinct because blockchain technology. Since blockchain systems now support smart contracts, it is feasible to tokenize trade commodities such as cryptocurrencies such as ether and bitcoin in exchange for real estate.


Here are some groundbreaking achievements of blockchain in real estate.


Marketplaces and Real Estate Blockchain Platform


The main goals of real estate technology have historically been to connect sellers and buyers and to list properties. However, blockchain opens up new possibilities for real estate dealings and helps online marketplaces and trading platforms provide more extensive real estate products. For example, real estate can be tokenized, and then transacted online like equities on a stock exchange.


Some platforms enable sellers to tokenize assets, effectively treating them like a stock sale, and then liquidate that asset through a token sale if the need arises. With buyers owning a portion of the property, the accumulated tokens can be converted into fiat money.


No Market Intermediaries


The real estate ecosystem has always included attorneys, banks, and attorneys. According to a Deloitte analysis, blockchain might soon bring about a change in their participation and roles in real estate transactions. Over time, new platforms may take over duties like listings, payments, and legal documents. By eliminating the middlemen, sellers will receive more for their real estate sales because they would pay less in commissions and other costs. Additionally, by eliminating the back and forth between these intermediaries, the process becomes considerably quicker.


Liquidity


Real estate has conventionally been regarded as an illiquid asset due to the lengthy sales process. This isn’t the scenario with tokens and cryptocurrencies because, they are easy to exchange to fiat money. With the introduction of blockchain, real estate can now be easily traded as a token. A seller is not need to wait for a buyer who can purchase the entire property in order to extract some value from their property.


Fractional Ownership


Blockchain also decreases the obstacles to real estate investment by permitting fractional ownership. Investments typically require a sizable down payment to purchase real estate. As an alternative, investors might combine their funds to buy more expensive properties. With blockchain, investors would only need to open a trading app and use it to purchase and sell tokens of any denomination.

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