Cryptocurrency is still the most exclusive & hot headline in the tech world; but, there is a little attention over the latest technology — Blockchain. There is a lot being written about blockchains, bitcoin and related technologies, and for many real estate experts, this is part of a innovative, new, confusing world of technology. Like the online business world, the blockchain is a uprising in technology that will touch all kind of people and all kind of businesses. So people are paying more attention, but many still don’t know what the blockchain is.
If you’re unfamiliar with blockchain technology, check out step by step introduction for blockchain technology beginners guide here.
The technology of blockchain can revamp several industries, including real estate, to turn the related processes and transactions more transparent, contemporary, and well-organized.
So, what are the advantages of using blockchain?
Basically, when transferring money in an foreign account or other account, the transaction would include an extra fee charged by your financial institution like banks or other sectors. The party at the other end will receive it after the complete online verification, which may take a few days.
But Blockchain is here to change the entire platform. It allows transferring assets digitally without any requirement of a middle authority that verifies the transactions. There is no need of third party, which means faster & secure transactions without extra commissions like additional charges.
And inside of no involvement of a third party or central authority, the whole online transaction is permanently recorded on a public ledger, which means things will be extremely transparent, accurate, fast and secured.
Also, using the blockchain technology in real estate background will reduce legal and title based costs, as well as quicken settlement processes.
Blockchain technology: the next big thing in commercial real estate Industry
Blockchain technology has recently been accepted and used by the commercial real estate (CRE) sectors. CRE professionals are finding that blockchain-based smart contracts can play an important role in their industry. Blockchain technology can potentially revamp core CRE processes like as property transactions alike property purchase, sale, financing, leasing, and complete management transactions.
Here are the ways Blockchain helps in building a completely transparent real estate buying-selling process.
1. Reducing Fraud
One thing that the blockchain technology is bringing to the real estate business is the best way of reducing off fraud, which has numerous advantages over the old way of doing things.
Based on the decentralization of records, Blockchain is a public ledger system so that it can keep your records like proof of ownership, proof exchange, proof of transaction and proof of existence more securely and transferenly so that no one can earse it.
“One big advantage of a blockchain system is its ability to avoid risks such as fraud. This in turn provides process principles, transparency, high quality record, faster transaction and lower costs.”
2. Technology of Transparency
Speaking of transparency…In a common real estate transaction, there are numerous stake holding members. There are the buyer and seller. There’s the real estate registry. There are the mortgage people. There’s the real estate company. And every ones got a advocate. But the advocates could possibly be ignored altogether by the transparent trust and integrity of the blockchain. For the additional stakeholders, this would mean lowered costs and boost-up transactions.
3. Simple to Secure Property Rights
land and buildings registry, which means clearly explain “title” or “property rights”, will become so simple to secure, thereby releasing up a lot of capital. With the Blockchain technology – it can keep your all digital asset data’s so no one can remove it.
4. More Stable Data at Lower Cost
When it comes to CRE property, agents, owners, tenants, buyers, and sellers rely on MLS(Multiple Listing Service), which is approval-based and expensive. Because the data’s made available is dependent on what the agents want, there’s no set standard for accuracy of information. But with its p2p, freely usable nature, “blockchain-empowered Multiple listing service(MLS) market would likely have access to more reliable & stable data at a lower cost.
5. Real-Time Accessible Database
Furthermore, the massive part of CRE processes and systems don’t overlap, leaving information diffused and not revealed in real-time. But the blockchain would provide a shared and open database expanding in real-time for all members in the transaction. Enhanced decision-making efficiency for parties involved will be the result.
How blockchain-based smart contracts could revamping the commercial real estate?
Smart contracts can be used when buying or renting a property. Smart contracts work in apartment leases in the following method: both parties conclude a contract for a particular period of time; an amount or rent is placed into a blockchain, after which the online transaction is considered successful, and the renter receives the keys to the physical property. Some property owner link the apartment lock to the Internet, and if the following payments are not made, it is simply blocked. The deposit is returned to the leaseholder upon the integration of the contract term or is transferred to the property owner’s account if non-compliance with the lease conditions has been recorded.
Here are just some advantages of using the smart contracts in the real estate sector:
Reduction of over expenses
Transparency and decentralization
Keeping intermediaries Away
Isolating of immovable objects
Blockchain technology provides the best opportunity for more exact tracking of customers and owners records, over borders and banks, reducing the risk of defaulters. Blockchain technology can contain a large amount of data, including entire smart contracts. The impact of “smart contracts” will have a wise impact. Smart contracts ignore the middleman, such as a legal industry, as transaction will happen based on certain milestones being met. By its very common, the smart contract is easily enforceable electronically, creating a powerful escrow by taking it out of the control of a single party.
How Pulsehyip can help the Commercial Real Estate industries?
Pulsehyip is the leading blockchain development company in India. We provide the services for multiple business industries to integrate the latest Blockchain technology. Our tailor-made Blockchain-development solution that helps business industries to comfort involvement of business management and reduce cost by eliminating the physical resources. We have successfully developed the most secure and protected blockchain based decentralized applications for your business all over the world.
Inquire Pulsehyip Team for more reference / Get free consultation @ Whatsapp - +91 97512 65651 / Skype live:talktous_69