21st century has seen the invention of many technologies which has improved the way a task is performed. These inventions have made human life easier. Moreover, the use of these technologies in various areas of business has further revolutionized the industry. More and more companies and businesses are adopting new technologies to make their company a success. One of such inventions is the blockchain technology.
Blockchain basically is a digital ledger where information can be stored and transmitted without any loss of data. Data is stored in the form of blocks which upon transmission is checked by loads of computers. After the check is complete the information becomes part of a network also termed as a chain that can be further accessed by any authorized party. Initially, it was used to transmit cryptocurrencies i.e. digital currency. But with the passage of time, people found other applications of it. Block chain in real estate industry is one such application.
The real estate industry is completely dependent on paper-based transactions. Various tasks like Change in the title of a property, loan approval, and registration of the property acquired and payment transactions require a lot of paperwork and record-keeping. This paperwork needs to stored and managed efficiently to ensure workflow is not disrupted. Blockchain technology tends to revolutionize this industry by eradicating the need for papers completely. All the records can be kept online in a block which then can be transmitted easily to anyone.
Companies, working in the real estate industry, have following benefits from this technology:
1. Paperless record keeping
2. Live to track of the change in ownership titles
3. Reduction in fraud – the authenticity of the ownership title can be checked from the online records. The use of fake ownership title papers is reduced.
4. Increase in the speed of transactions like sale and purchase of property
5. Creation of unified real estate market – transactions like sale, purchase, and leasing of property across the globe become easy. Quick payment and transmission of title papers ensure smooth property transactions.
6. Reduction of costs – the need for middlemen like a broker or property consultant gets eradicated. A buyer only has to pay for the rental or the actual cost of the property without any brokerage fees or commission. The process becomes automated which reduces the need for several hands in transactions.
7. Security – blockchain technology is a decentralized method of storing and receiving information. It means the information once stored by a party cannot be erased from the online database. Moreover, the information stored can only be viewed if the party has permission to access it.
8. Global access – information like property listings can be stored using blockchain which further can be viewed by the customers worldwide eradicating the need for property dealers. Global listing speeds up the process of buying and selling of property.
The adoption of new technology in any business requires planning and support from the whole management. However, once adopted the upgradations can help in managing them more efficiently. Real estate blockchain companies that have adopted this method successfully are enjoying its benefits like increased profit.
It is important to make other companies understand the benefits and opportunities connected with adoption. Mass adaptation by the companies is essential so that the whole commercial real estate industry can benefit from it.