Blockchain technology and cryptocurrencies have the potential to become key technologies in the real estate market. Blockchains enable faster and more secure transaction processes and more accurate in selling a house.
Blockchain technology and cryptocurrencies are having a growing influence on various industries and in everyday lives.
“Tokenization” of real estate
A blockchain is a type of decentralized booking system in which every user who is part of this blockchain system can view the whole database with all information excerpts or chains from it. The data stored in a blockchain and instantly encrypted is available to every network participant and must match the data copies of other participants. Consequent manipulation of data, balance sheets, and ratings is almost impossible. In addition, data recovery is easy since you can retrieve the entire transaction history from any network node.
Crypto technology allows sellers to “tokenize” individual parts of the property or to sell a house as a whole. Therefore, numerous people can obtain digital shares in real estate. Each of these people becomes a co-owner of the property by possessing the tokens. The seller could make liquidity from his property as needed.
The buyers can resell the tokens successfully at any time, for instance after a rise the prices of in real estate. This way, the blockchain lowers also the obstacles for real estate investments by a wider audience. This is precisely what many blockchain platforms and trade apps in the real estate business are based on. Also, financing in real estate is becoming more easily accessible and transparent for small investors.
More accurate property valuations and forecasts
In contrast, decentralized blockchain technology permits current market information and comprehensive availability of large amounts of data. Immense amounts of information like demand trends, location-related rental and purchase prices, and comparative data are already available into the process for online property valuation.
More and more companies are opening up to digital currencies as a means of payment. In addition to buying with cryptocurrencies, blockchain technology also allows interested parties and real estate companies to have more transparency and security.
Brokers will be able to survive on the market in the future. Soon, technological financial knowledge will also play a significant role in the brokerage profession.