Blockchain first made its debut when the world was introduced to bitcoin, the first ever cryptocurrency. Today, blockchain technology goes far beyond crypto.
Better known for its online currency, blockchain uses cryptography to ensure exchanges that are done online are secure. It provides a decentralized database, or “digital ledger”, of transactions that is transparent to everyone. In other words, all transactions done must be approved by all computers before it is being recorded and verified.
Because of its high-security, Commercial Real – Estate (CRE) are now adopting blockchain in aiding them with the development of Smart Contract – a self-executing code on a blockchain that automatically implements the terms of an agreement between two or more parties, making transaction and contract agreement as secure and transparent as possible.
However blockchain is doing more than just producing secure contracts, it is also helping buyers and agents to keep track of properties. A blockchain-based digital identity can include a property’s history, location as well as any modification work done which may impact the market price. With this system in place, it will be hard for irresponsible party to commit fraud or tamper with any related document.
On top of that, Blockchain technology can also help improve the process of property hunting. Blockchain-based multiple listing service (MLS) enables data to be widely distributed across a peer-to-peer network. This way, property developers as well as agents will have more control over the information that is being put out, enabling property information to be accessed by everyone. Like the digital identity, potential buyers will also be able to go through history, location as well as compare rent rates for their prospectus property.
In short, blockchain offers more security and transparency in the buying and selling of property. The process of property purchasing can be overwhelming enough and blockchain can help ease the weary in a lot of areas.