Blockchain has been widely recognized as having a huge potential to transform the payments industry. The technology has been successfully integrated by banks, exchnages and other financial organizations. Its benefits allow companies to quickly and securely conduct transactions from people all over the world.
There is currently a strong hype around the blockchain technology. More and more companies start investigating how the use of the distributed ledger would help to improve their businesses.
But there is still a sector, according to TechCrunch, that could be positively affected by blockchain: the real estate.
The market is demonstrating a huge pace of growth now. Given the increased demand for property and a shortage of new houses under construction, the prices are rapidly rising. Some experts predict that the growth of prices will only continue in the near future.
However, acquiring real estate can be quite a cumbersome and time-consuming procedure, as little has been done to improve the system.
There are a lot of bureaucratic hurdles to overcome, including excessive paperwork and signing agreements. Although the world is becoming more digital today, a lot of time is still being spent on administrative work.
The government creates additional barriers by putting limits on real estate transactions. Besides, there is always the risk that one part of the deal will get out of the contract at the last moment.
While the blockchain can’t change governmental restrictions, it can simplify the verification process by eliminating the third party. The use of the distributed ledger database will allow sellers to instantly transfer ownership avoiding the need to spend money on middlemen participation.
In addition to increased speed and transparency, the blockchain could reduce the risk of fraudulent activities, such as falsifying documents or the sale of fake property, to a minimum.
“Bitcoin is the greatest technological breakthrough for real estate since the wax seal 400 years ago. Using Bitcoin’s currency and blockchain will take real estate from the 17th to the 21st century,” Ragnar Lifthrasir, President of the International Bitcoin Real Estate Association, told OPP.Today.
Lifthrasir believes real estate agencies will begin incorporating the digital currency system this year, as the cryptocurrency technology is ready for adoption.
“We’ve reached the critical mass now, where we have enough real estate industry decision makers who will use Bitcoin technology in their deals, applications, and start-ups. Unlike the banking sector, real estate doesn’t face the regulatory hurdles to use Bitcoin. The technology is now mature enough. Everything is in place for adoption.”
“International property agents and developers will benefit from Bitcoin adoption because it provides a borderless, non-proprietary platform for payment, escrow, and title recording.
However, the integration of blockchain by real estate businesses is a long process and is likely to take a few years to complete. But there will definitely be a lot of exciting opportunities offered by the technology.