Blockchain Technology Is Getting Ready To Revolutionize Real Estate
The real estate industry will not be able to escape from the blockchain disruption.
The real estate industry will not be able to escape from the blockchain disruption. Blockchain is changing the traditional way real estate transactions are usually conducted. For example, the introduction of smart contracts in blockchain platforms now allows assets like real estate to be tokenized and be traded like cryptocurrencies like bitcoin and ether.
Blockchain technology is again in the spotlight, but this time, the technology goes beyond Bitcoin and its cryptocurrency alternatives, or simply, its big role in transforming global banking. New ways to trade real estate are emerging and more online marketplace are facilitating real estate transactions internationally.
One of the companies playing the blockchain game is ATLANT -a global real estate platform that facilitates real estate and rental property transactions. By tokenizing real property, assets can then be traded much like stocks on an exchange and transactions can be done online
Another example is Propy, a new player in the international real estate market. According to Inman, the company announced that is had raised $15 million from backers by selling virtual currency tokens. Its goal is to simplify the way people invest in foreign properties.
“Early and widespread support for Propy indicates a clear demand for digitizing of the $217 trillion real estate market and turning it into commodity,” said Natalia Karayaneva, CEO of Propy.
The startup aims to create a Amazon-like marketplace. They utilize the Ethereum blockchain -a cryptocurrency rival to the better-known Bitcoin. In addition, Propy has also announced agreements with the government of Ukraine and the Chinese real estate company, Leju Holdings Limited. What does this mean? Foreigns buyers will be allowed to purchase public lands in Ukraine and private properties in China through the startup.
More and more government agencies and for-profit companies are exploring the opportunities of getting involved with the blockchain technology. According to Fast Company, Blockchain advocates in the real estate space are pushing the technology. It could potentially reduce transaction costs and errors, as well as fraud.
How could this new scenario revolutionize the real estate industry? For the most part, international real estate is dominated by the wealthy and large corporations. With the use of the blockchain technology, more people will have the opportunity to deal with a market where transparency and security are guaranteed. At the same time, decentralization is another important factor. The information stored in the blockchain is accessible to all people on the network making data transparent. Let’s not forget that the collected information can be verified by peers, buyers and sellers, which translates into more confidence when making transactions.
What about fraud or illegalities? Smart contracts are becoming more and more admissible records in the United States (Vermont, Arizona). One can hope that in no time, these contracts would have a legal foundation and become enforceable,