Updated: Mar 25
What used to be known as the technology that brought cryptocurrency into existence, blockchain has now been revolutionizing many industries. From manufacturing, healthcare, production, etc. and now, even the real estate industry will be digitally transformed, in more ways than one. The real estate industry constitutes a huge portion of the world’s economic asset and transaction activities. But throughout history, this industry has relied upon inefficient ancient methods for doing business and record-keeping. But now, as the valuations of properties and continuous developments around the world continue to rise, blockchain technology is set to revolutionize the way things are with the real estate sector. Here’s what you need to know about what blockchain technology can do to improve the real estate industry.
Blockchain can automate real estate processes
As a state of the art technology, blockchain can automate real estate processes, making transactions more efficient and real-time. The current processes in real estate transactions still use wire transfers and expensive verification processes that take a lot of days to complete. Blockchain-based platforms, such as the Virie Market will streamline processes, that will then produce results quicker and cheaper.
Blockchain will eliminate third-party intermediaries
From brokers to escrow companies, all these are third-party intermediaries that the current real estate methods can’t do without. This means additional costs and longer processing time due to bureaucracy. Blockchain eliminates all these because it stores, verifies, and transfer records without anybody coming in between. In fact, Virie even has an embedded escrow system mechanism that doesn’t need any third-party. Instead, it runs around the economic principle that to be able to maximize profits, everyone has to play fair.
Blockchain can tokenize real estate
Throughout history, real estate investors have to be wealthy already and have the luxury to wait for a long time to liquidate their hard assets. Tokenization can change that and democratize ownership of assets by using cryptocurrencies to split assets into tokens that are stored in the blockchain. People can now sell their assets in a free market, such as the Virie Market, so that someone from the United States can sell his properties to someone in France without having to leave the country. So that someone from Japan can buy a building in the Philippines without a lot of fuss, and so on.
Blockchain prevents fraud
Blockchain platforms use smart contracts to complete transactions between the buyer and the seller without any human intervention. It doesn’t just save a lot of time for both parties, but it also prevents fraud. The buyer will put all the details of the property that the seller provides in a 100% encrypted and secure block. The system’s protocol will check the legitimacy of the transaction, and the agreement, will not be completed until all of the terms are met. Virie Market even has a hybrid protocol of Proof of Stake (PoS) and Proof of Work (PoW) that will ensure that only the two parties involved can have access to the transaction.
2020 may be the conjugation point for blockchain usage in the real estate industry. Cryptocurrency continues to prove that it’s a wealthy investment, and the same thing will apply if it’s used in real estate investments. There’s also an increasing awareness among real estate investors and professionals about the benefits of using blockchain-based platforms for their transactions. While the relationship between blockchain and real estate still in infancy, blockchain will eventually bring the real estate industry to a higher level. With the birth of Virie Market, everyone is encouraged to take a look at it and see its potential. Read the whitepaper here and download the application here to see for yourself how it works.