Given the blockchain’s acceptance in financial services across the world, it is hard to find a segment or industry that is not influenced by the technology. Blockchain services bring potential benefits for businesses to grow and maintain a safe and secure environment. Cryptocurrencies have made a very strong impact on foreign exchanges, payments, insurance, and remittances. Just the way blockchain is transforming healthcare, supply chain, eCommerce, or other sectors, real estate is also experiencing innovation with full stack blockchain development services.
In this article, we will look at the potential use cases of blockchain in the real-estate sector and what possibilities could be seen in the coming years that can exceptionally change the way real estate used to operate.
Blockchain Technology in the Real Estate Sector
Real estate is all set to disrupt blockchain technology in all of its vertices. Starting from the payments, the traditional real-estate processes involve the physical exchange of money through face-to-face agreements with the entities. There was no concept of processing transactions through digital channels. Blockchain’s and hire hyperledger developer have introduced innovative means to change the workflow by introducing smart contracts that allow digital platforms to automatically conduct transactions and operational activities in a matter of seconds. The processes now involve cryptocurrencies like ether and bitcoin to process the transactions and move towards a more secure and quick environment.
Below are the use cases of the real-estate sector that can be transformed with blockchain.
- Marketplaces & Platforms
Real estate activities involve the connection of buyers and sellers with all the concerned listings and prices. Blockchain solutions development replaces these traditional processes with automated ones by introducing new ways to trade in the real estate market. It develops online marketplaces and trading platforms through which trade could be made easily followed by seamless payments and transfers.
To quote an example, ATLANT is one developed blockchain-based real estate platform that handles stock sale, asset liquidity, and token sale and facilitates rental property transactions.
- No Middlemen or Third Parties
Blockchain eliminates all the intermediaries with its decentralized property. A real estate built on a blockchain platform automates the processes through smart contracts that do not require any help from central authorities or third parties. For instance, lawyers, brokers, and banks have always been a core part of the traditional real estate system. Blockchain operates on its own while providing a number of benefits to both the buyers and sellers including low transaction costs, high transaction processing, and immutable record of transactions.
- Liquidity
As we all know the real estate sector is always considered one of the most illiquid assets. Blockchain development companies make it more predictable through cryptocurrencies and tokens as it allows trading of fiat currencies through exchanges. Real estate can readily trade the tokens for which a seller does not need to wait for a suitable buyer to sell the property to get the value he wants.
- Fractional Ownership
Another major use case of real estate is that it offers fractional ownership. Generally, investors pool their money to get a significant advantage and buy ticket properties that are bigger. Blockchain makes it simple as it allows investors to simply access the trading app to buy and sell the fraction of tokens they want and find fit. Additionally, fractional ownership helps actors manage the properties without any intermediaries and maintain and lease accordingly.
- Decentralization
Decentralization is a core advantage of blockchain technology that allows users to trust the network due it =s secure, transparent and immutable nature. Blockchain Development services offer a very straightforward way of securing and tracing the record of transactions. The information can easily be verified by the people such as buyers and sellers and they can build more trust in conducting the transactions. Smart contracts make the ecosystem automated with their programmability power.
- Costs
Blockchain’s most prominent advantage for real estate is that it reduces the ultimate cost of transactions and their processing. It eliminates the intermediaries from each activity and manages all the operations on its own which means there won’t be any processing cost or fee charged by central authorities.
Conclusion
Blockchain redefines the scope for real estate businesses with its manifold use cases for real-world activities. If you are also looking to reform your business workflow, take help from the best blockchain development service providers to turn your traditional ecosystem into a modern one.