As Bitcoin and other currencies are adopted on a global scale, the applications of blockchain technology in the real estate industry are no longer just a theory; they have transitioned into reality. The technology that powers some of the most popular cryptocurrencies these days can revolutionize the real estate industry and others. The applications of blockchain technology in the real estate industry can change the housing space for the better.

It has garnered attention because it represents a shift in how things are done in the every industry. With cryptocurrency brokers and exchanges becoming rampant, people are also taking a close look at blockchain. After all, blockchain technology has the potential to change the whole foundation of real estate because its applications can democratize the space and make it accessible to everyone, while facilitating secure and faster exchanges. Some of the changes this technology can bring are listed below.

• Online platforms and marketplaces

Thanks to technology, the development of online marketplaces and platforms have also changed the real estate space. Transactions have become feasible and accessible for everyone who wants to participate in the market. With the real estate applications of blockchain, people will be able to engage in the industry without worrying about malicious platforms and exchanges. In addition, the platforms will also be quicker and more secure, thereby saving holding costs and headaches.

• No intermediaries required

One of the most appealing features of blockchain technology is the decentralization element i.e. there is no reliance on a centralized authoirty. It will remove the role of the ‘middleman’ from the real estate market and others, which not only speeds up transactions, but also helps in cutting down costs. Blockchain technology is considered immune to tampering and this has allowed it to become a superior version of escrow.

Essentially, it works as a digitized marketplace that can be used by parties for exchanging goods without worrying about the intentions of the other side. These real estate applications of blockchain can be used for exchanging everything, from payments to legal documents, without any worries. Moreover, when intermediaries are eliminated, it allows buyers and sellers to skip the hassle of fees and commission and exchanges can be quicker.

• More liquidity

One of the best things about blockchain technology in the real estate industry is that it allows tokenization and this can add more liquidity to the market. Before tokenization, people had to physically sell their property in order to get cash and this is a lengthy and time consuming process, which means reduced liquidity.

With tokenization, this problem is eliminated because digital tokens on the blockchain are used for representing ownership of a property. Hence, the tokens can be sold by owners to get cash and not have to go through the traditional method of selling a house. Thus, they would not have to wait for weeks, or even months, to sell and buy real estate.

• Automated transactions

Another perk of blockchain technology’s real estate use cases is that it can function as an escrow autonomously. There will be no need to seek professional services for executing transactions because the blockchain does it itself. Furthermore, you will not have to pay any exorbitant fee, which is usually associated with escrow agencies.

• Real estate smart contracts

If you keep up with blockchain news, then you have probably heard of smart contracts. These can also come in handy in the real estate industry, as these are better than their traditional counterparts. Blockchain technology can be used for creating, auditing and authenticating contracts in real-time, without requiring a middleman and in any part of the world. As instructions can be added in the transactions, so payments will only be executed when all instructions have been followed. This can ensure complete transparency and reduce the chances of payment disputes.

Blockchain technology can bring groundbreaking changes in the real estate industry and help it progress and expand.