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Blockchain is ready to redefine the way we conduct transactions in the same way that the Internet has redefined the way we communicate and share information.
Was originally created a decade ago to support the bitcoin cryptocurrency, but it has grown a lot more. Blockchain has led to the creation (and loss) of millions of fortunes, the launch of hundreds of new companies, billions of dollars in funding from investors and, more commonly for the non-technical, a lot of confusion around his real benefits.
In its simplest form, blockchain allows for the first time people and companies to make important transactions without going through an intermediary. Intermediaries such as credit card companies, exchanges, banks and governments can make transactions expensive, slow and illiquid and can open up opportunities for fraud or crime.
Access to offers, the amount of time needed to close, property errors, high taxes and frauds rage in real estate. It is the largest asset class in the world and has had minimal innovation in the way of increasing efficiency during transactions. Blockchain poses important opportunities for innovation in the real estate sector. Here are three innovations that will change the way real estate is done for the better in 2019.
tokenization
Historically, owning the most profitable assets required investors to be already wealthy and have the luxury of being able to wait years to liquidate. This changes with tokenization.
Tokenization democratizes the ownership of resources using cryptocurrency to subdivide resources into tokens that are stored on the blockchain. Someone who wants to invest in a project of a real estate trophy now has the luxury of being able to resell its share in the open market through secondary trading. Furthermore, people in different geographical and tax areas now have access to attractive investment opportunities that they previously would not have. Owners now have the option of selling only a portion of their property to the crowd. In 2019, I believe we will see an important migration of real estate moving to the blockchain. & Nbsp;
One of the pioneers in space is Templum Markets, & nbsp;the first regulated marketplace at the federal level for primary issuance and secondary security token trading. & nbsp;Recently it closed what is thought to be the first digital security tokenisation of a real estate of the trophy: investors have had the opportunity to invest up to $ 10,000 in St. Regis hotel in Aspen. Unlike major real estate investments, landlords are not stuck until the building is sold. They will be able to sell their share on the secondary market.
Smart contracts
The current state of real estate agreements has many moving parts and intermediaries. A transaction that uses an intelligent contract is completed entirely between the buyer and the seller (or tenant and owner) and has no human interaction.
Transactions can be made in much less time with much less chance of fraud. & Nbsp;The seller includes all the details of the property and the buyer puts all his necessary information on an encrypted and 100% secure block. & Nbsp;The information protocols verify the legitimacy of the transaction and it is not possible to conclude any agreement until all the terms are satisfied.
Propy is one of the best known incumbents in space. He built the technology for buyers, sellers, brokers, title agents and notaries to get together through a series of smart blockchain contracts to facilitate transactions.
The purchase of real estate can be a very emotional decision for people. I believe that intermediaries like brokers and lawyers earn their commissions for people who potentially make the biggest financial decision of their lives. While smart contracts are currently under construction to replace intermediaries, I believe this technology will eventually be used to make consultants in this space more efficient.
Title of the property
Title insurance he became a $15 billion turnover per year assuring buyers that their property is free from old liens and debts. Each municipality has its own way of storing property data. Some cities and cities have put documents online while others still use printed paper. If all the real estate titles were decentralized on the blockchain, it would have saved an enormous amount of time and money and, potentially, the title could have been completely eliminated. It could also be possible to add information on the construction, damage and improvements to the title, almost like Carfax for homes. This will help ensure that people really know what they are buying.
Unfortunately, while having all the title on the blockchain would be great for property buyers, the input of this amount of data from each municipality is an extremely laborious and expensive business. There are some exciting technology companies in space, like State Title and Jetclosing, but it is not clear if they are at the height of the task. It will be interesting to see if governments, companies or a combination of both spend dollars to improve the quality of data for where we live, work and play.
Next year will be a turning point for the use of blockchain in real estate. Private investment has invested in real estate technology, the wealth of cryptocurrencies is enormous, real estate professionals are increasingly aware of the blockchain and the underlying technology is improving. When it comes to potential growth and the adoption of blockchain technology, we are at the first inning. Similar to the use of the Internet, the use of blockchain may soon become so common as to forget you're even using it.
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Blockchain is ready to redefine the way we conduct transactions in the same way that the Internet has redefined the way we communicate and share information.
It was originally created about ten years ago to support bitcoin cryptocurrency, but it has become much more. Blockchain has led to the creation (and loss) of millions of fortunes, the launch of hundreds of new companies, billions of dollars in funding from investors and, more commonly for the non-technical, a lot of confusion around his real benefits.
In its simplest form, blockchain allows for the first time people and companies to make important transactions without going through an intermediary. Intermediaries such as credit card companies, exchanges, banks and governments can make transactions expensive, slow and illiquid and can open up opportunities for fraud or crime.
Access to offers, the amount of time needed to close, property errors, high taxes and frauds rage in real estate. It is the largest asset class in the world and has had minimal innovation in the way of increasing efficiency during transactions. Blockchain poses important opportunities for innovation in the real estate sector. Here are three innovations that will change the way real estate is done for the better in 2019.
tokenization
Historically, owning the most profitable assets required investors to be already wealthy and have the luxury of being able to wait years to liquidate. This changes with tokenization.
Tokenization democratizes the ownership of resources using cryptocurrency to subdivide resources into tokens that are stored on the blockchain. Someone who wants to invest in a project of a real estate trophy now has the luxury of being able to resell its share in the open market through secondary trading. Furthermore, people in different geographical and tax areas now have access to attractive investment opportunities that they previously would not have. Owners now have the option of selling only a portion of their property to the crowd. In 2019, I believe we will see an important migration of real estate moving to the blockchain.
One of the pioneers in space is Templum Markets, the first regulated market at federal level for the primary issue and secondary trade of security tokens. Recently it closed what is believed to be the first digital security tokenisation of a trophy real estate: investors had the opportunity to invest a minimum of $ 10,000 in the St. Regis hotel in Aspen. Unlike major real estate investments, landlords are not stuck until the building is sold. They will be able to sell their share on the secondary market.
Smart contracts
The current state of real estate agreements has many moving parts and intermediaries. A transaction that uses an intelligent contract is completed entirely between the buyer and the seller (or tenant and owner) and has no human interaction.
Transactions can be made in much less time with much less chance of fraud. The seller includes all the details of the property and the buyer puts all the necessary information on a 100% secure and encrypted block. The information protocols verify the legitimacy of the transaction and it is not possible to conclude any agreement until all the terms are satisfied.
Propy is one of the best known incumbents in space. He built the technology for buyers, sellers, brokers, title agents and notaries to get together through a series of smart blockchain contracts to facilitate transactions.
The purchase of real estate can be a very emotional decision for people. I believe that intermediaries like brokers and lawyers earn their commissions for people who potentially make the biggest financial decision of their lives. While smart contracts are currently under construction to replace intermediaries, I believe this technology will eventually be used to make consultants in this space more efficient.
Title of the property
Title insurance it has grown to a turnover of $ 15 billion a year, assuring buyers that their property is free from old burdens and debts. Each municipality has its own way of storing property data. Some cities and cities have put documents online while others still use printed paper. If all the real estate titles were decentralized on the blockchain, it would have saved an enormous amount of time and money and, potentially, the title could have been completely eliminated. It could also be possible to add information on the construction, damage and improvements to the title, almost like Carfax for homes. This will help ensure that people really know what they are buying.
Unfortunately, while having all the title on the blockchain would be great for property buyers, the input of this amount of data from each municipality is an extremely laborious and expensive business. There are some exciting technology companies in space, like State Title and Jetclosing, but it is not clear if they are at the height of the task. It will be interesting to see if governments, companies or a combination of both spend dollars to improve the quality of data for where we live, work and play.
Next year will be a turning point for the use of blockchain in real estate. Private investment has invested in real estate technology, the wealth of cryptocurrencies is enormous, real estate professionals are increasingly aware of the blockchain and the underlying technology is improving. When it comes to potential growth and the adoption of blockchain technology, we are at the first inning. Similar to the use of the Internet, the use of blockchain may soon become so common as to forget you're even using it.
