While bitcoins and cryptocurrencies are the most popular tools exploited by the blockchain, this distributed ledger technology (DLP) offers a wider range of benefits. These tools have recently been adopted by the commercial real estate industry (CRE). CRE executives say that blockchain-based smart contracts can play a greater role in their sector. Blockchain technology can transform core CRE functions like real estate transactions such as sale, purchase, financing, leasing and management transactions.
The blockchain milestones are residential and commercial real estate (CRE). Being a digitized distributed register or database that records and shares information permanently, blockchain brings revolutionary improvements to real estate transactions. The information is stored in blocks; each block includes a timestamp and a link to a previous block.
The blockchain has the potential to change the way real estate works. CRE transactions tend to be rigid, expensive and time consuming because vital information is stored in disparate systems that require the use of intermediaries, including brokers, inspectors and experts, securities companies, collateral companies, county recorders and public notaries to increase access. These layers lead to a lack of clarity and probability that lead to errors.
Blockchain does not need many intermediaries because it offers the opportunity for anyone to record or view information. It facilitates each property to have a digital address with employment, financial, legal and physical information, and a history of transactions and repairs. All data is accessible and available immediately in a single location. The parties can authenticate property records and transfer digital titles in one click. The risk of copied credentials or fake lists will diminish radically.
Blockchain technology will play an important role in CRE transactions as a tool to reduce costs, reduce errors and improve efficiency. In the near future, it may be possible for a home customer to buy a home and complete the sale by simply clicking on a shopping cart on a website. The blockchain will ensure that the customer purchases the house and the seller receives the money instantly and securely.