Insuranceciooutlook

Simplifying Cryptocurrency, Blockchain and Its Real Estate Applications

By Insurance CIO Outlook | Wednesday, November 21, 2018

Buying and selling property is a hassle. There are intermediaries to sell the house and untrustworthy people involved in purchasing a piece of land. The blockchain is a platform where the seller or the buyer has to present all the necessary information, and they are linked to potential buyers and sellers directly.

Blockchain in the Real Estate Industry

Safe transactions are done through blockchain because the technology supports trusted transactions through a shared network. The information on the blockchain cannot be corrupted. These characteristics make it useful and safe for real estate payments. The technology creates a decentralized database that holds the record of all properties across the world. This creates transparency that has never been seen before. Real estate industry may go through a real change with the help of this technology.

International Blockchain Real Estate Association (IBREA) currently has 400 members who are working on the advancement of blockchain in the real estate industry. The network created would be cost-saving, efficient, and fraud-free.  Blockchain will completely change the way information is stored and exchanged digitally which in turn changes the way real estate is managed.

Benefits of Using Blockchain in Real Estate

The impact of blockchain on real estate industry will be powerful. Here are some benefits of blockchain on real estate.

Title Deed

All the title deeds on the blockchain will create a robust and secure platform for the land owners. The access to all the data will be easy because no third party permission is required for the same. Land owners can rest assured that their title deeds are secured as the deeds will be verified by the system. This can end land grabbing. Whenever someone buys land, a token will be issued to them as a proof of ownership along with the deed.

Ease in Buying and Selling

The information about a property on sale will be transparent and will be available to all the buyers interested in the property. Similarly, the seller will have all the necessary information of the buyers because of the quick exchange of data. A transaction can be done quickly without any hassle.

Digital Currency

There are no cheques or cash involved in the transaction, and there are no intermediaries or middlemen to pay. Thus, the deals are more cost-efficient. Each user has their unique identification number (UIN) on the blockchain which can be shared securely. The exact amount is transferred from the buyer to the seller. Additionally, the chances of theft and fraud are reduced because of digital currencies.

Cross-Border Transactions

Blockchain stretches the geographical boundaries. Expats who find it difficult to apply for rentals and buy properties outside their home country can easily do it with blockchain. Transactions can be done seamlessly, and without any stress, no matter the buyer and the seller are located.

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