How Is Blockchain Helping The Real Estate Industry
You must have heard of Cryptocurrency and Bitcoin. They have turned out to be instrumental in providing business with some real thrust. Millions of people are trading Bitcoin. Do you use Bitcoin? If not, trade Bitcoin and feel the change in your economy. If you start trading, take help from the bitcoin era. They can help you out with trading; you don’t need to really worry much.
Moving on, Bitcoin uses Blockchain technology. This really made Cryptocurrency all that powerful. Different sectors are trying its utility Bitcoin and among them real estate one such. In this article, we are going to discuss the way in which the real estate industry can leverage Blockchain technology to effect.
Facts And Stats On Real Estate
Prior to understanding the application of Blockchain Technology, let’s share some facts and data on the real estate industry in the USA.
1. The average price of the newly listed homes has climbed to 3.5%. So the effect of the recession has contributed to this development.
2. According to data provided by the Federal Reserves, interest rates from 2020 to 2021 to
3%. Interest rates climbed to 4.17% as of March 2022.
3. Home Buying power, that is, buying propensity, though increased to 21%, plummeted significantly in the year 2022.
4. According to the FBI, around 13600 people fell victim to real estate fraud.
These data and figures provide ample reason to establish the fact that the real estate sector in the USA, though robust, is facing the heat of the pandemic. People are facing fraud.
How Blockchain Can Be Implemented In The Real Estate Sector
Blockchain technology is very promising, and it can be used in the real estate sector to gain benefits. Let’s discuss some of the areas where Blockchain can be utilized.
Decentralization is one of the most prominent characteristics of Blockchain. Whenever information is recorded in Blockchain, it gets recorded in a large network of computers. The records are immutable and hence transparent. Since information can be verifiable, there remains no question of forgery and theft. Information, once it gets into the system, completely gets sealed.
You know that the transactions in the real estate sector are generally lumpsum amounts. When you use some third-party system of payment processing like debit cards and credit cards, they have some money. This is a service against which payment is processed. Now, if you use Blockchain, you are going to get deductions on the processing costs. With Blockchain, the middlemen get reduced significantly. The stakeholders are able to save money.
Issuance of a No Objection Certificate (NOC) and other compliance certificates can be recorded in Blockchain technology. Now, if important papers and certificates are stored in Blockchain technology, they automatically bring trust and transparency.
Now that these certificates are safeguarded in Blockchain, there is a total guarantee of safety and security. Trust is one issue that needs to be kept between the developers and the customers. From the developer’s point of view, commitment is all about delivering prosperity at the right time. From the part of customers, it’s all about timely payment of installments.
4. Platform For The Traders
According to a report published by Enterprise Ethereum Alliance (Real Estate Use Cases for Blockchain Technology), asset management investors are constantly looking for ways of increasing liquidity options. Now the role of Blockchain here is that the technology can be utilized to build an investment block. Here a platform can be created between the buyers and the sellers. Blockchain, like Cryptocurrency, can be helpful in tokenizing real estate.
Blockchain is one technology that has huge potential ties in the real estate sector. With this technology, the stakeholders try to gain benefits. The real estate business is moving through low confidence.
Under the circumstances, people are searching for some technology that has the capacity to not only benefit the business in general but also create opportunities for further growth of the sector.
Remember, Blockchain Technology is in its infant stage of development. But it already shows great promise. No matter why the real estate sector is trying to utilize the innate characteristics of Blockchain to earn substantial profits.