Blockchain technology brings significant advantages to the marketplace and it is no surprise that this game-changing technology is seeing massive adoption on a global scale. Industries are looking to this technology to help improve the security and efficiency of their current wasteful business models. One industry, in particular, is already seeing a huge push towards blockchain integration – real estate.
The real estate sector has been plagued with wasteful business practices and outdated technology for years. In some instances, this can lead to issues involving the true ownership of a property in question. All over the world, you are now seeing real estate investors teaming up with blockchain-based firms to improve their business systems. Here are a few ways blockchain technology is changing the real estate market forever.
Currently, real estate professionals must rely heavily on the MLS (Multi Listing Service) to receive their property data. The subscription-based MLS provides real estate professionals the ability to further research a property in detail. The problem is that this service is expensive and the data often gathered through the MLS can be outdated. The MLS is also very compartmentalized to restrict information to non-real estate professionals.
Blockchain technology could transform this service into a robust and fully transparent entity. Blockchain technology could make it possible to provide a national or even global database of highly detailed real estate property data, including financial information. The costs incurred would be greatly reduced and functionality would reach new levels on a blockchain-based platform.
Imagine that your relative passes away and leaves you their Caribbean vacation home in their will. The only problem is, when you go down to inspect the property, you find that other people have been living in the home for years and they are attempting to claim rightful ownership. Due to the countries shabby title laws, you now have to spend months debating your case to foreign court.
This scenario plays out all across the globe and even more so when dealing with smaller countries with less accurate data keeping technologies. Blockchain title records would be undisputable; rendering this scenario as non-existent in the future.
Last year, Cook County, Illinois became the first in the country to integrate blockchain technology into their property title system. It has been a huge success over the previous system, which was only locally-based and offline.
Imagine if transferring a property was easy as sending a BTC. This could be the very near future as numerous blockchain professionals have announced plans to “Tokenize” real estate. When something is tokenized it is integrated into the blockchain via a unique digital representation. The token that represents the property also represents ownership of the property. Whoever is in possession of the token has clear ownership of the property. Companies such as Brickblock have been offering this service for over a year with huge success.
Blockchain + Real Estate = $
It is truly exciting to see the real estate market changed so significantly by blockchain enthusiasts. You can expect to see further advancements in the real estate sector as the cryptocurrency market continues to develop and one day in the near future, you could be buying your next home via a cell DApp.
What do you guys think? Are you ready for your home to be tokenized? Let us know in the comments below.
By D. Hamilton, BIG Writer