You are here:Home/How can Blockchain Digitalize the Real Estate Industry?
The blockchain is a technology that is set to disrupt the centralized systems for the better. Originally developed to support the cryptocurrency bitcoin a decade ago, this technology has grown to be something that has use cases in almost all industries. This unique technology has already developed millions of fortunes, launched hundreds of new organizations and raised billions of dollars in investor funding.
Also known as the middleman-killer, the blockchain technology helps people and businesses in making major transactions without going through an intermediary such as credit card service companies, banks stock exchanges, and governments that make transactions slow, illiquid and expensive or they may even open opportunities for fraud or crime, who knows?
Similarly, when it comes to real estate, we get many people running fraudulent housing schemes and real estate agents ripping off people just because they get trusted. This trend stops the flow of investment in developing countries as big investors don’t trust the people in the indigenous market. The middleman is always running the show and running it very poorly. Blockchain can end all these issues and can not only make the property transfer process secure but also speed it up. Here is how.
Tokenization is the key to making real estate secure and dependable. It democratizes ownership of assets by converting assets into Non-fungible tokens that are stored on the blockchain. Non-fungible tokens (NFT) are just as easily exchangeable as the fungible tokens on the blockchain, but they are so much more than the fungible tokens. An example of the fungible token is Bitcoin. All bitcoins are similar and have the same value. But when you turn to NFT, you get so much more. NFT are like digital assets on the blockchain that are safe and come with complete ownership documentation and history. Since they are on the blockchain, their blocks are undeletable and cannot be edited or changed. You can always create new ones but the originals ones are always there.
So if your title deed is tokenized, it is instantly recognized by the government if the government is also on the blockchain. You won’t have to go through the tedious and time-consuming procedures of property transfers and can do it within seconds. You will be directly in contact with the buyer or the seller and transferring property through government-approved method without having to pay anything to the middlemen. Isn’t it wonderful? What are your views?