How familiar are you with the advantages of implementing blockchain technology in the real estate software development? Then again, do you still think conventional firms won’t benefit from this technology?
As a matter of fact, the real estate business has also seen the emergence and growth of blockchain development trends over the past few years. Many useful advances and conveniences have resulted from the development of this technology. This includes a wide variety of things, such as smarter decision-making, automated property management, and increased transaction security.
As a result, blockchain has the potential to revolutionize the commercial real estate industry and usher in a new era of progress and creativity. Here, we show you how to get a leg up on the competition by adopting blockchain technology in your real estate business.
You can see how this cutting-edge technology has helped businesses like Real Estate Association and Rently succeed by reading more about our case studies.
To What Extent Should You Care About Using Blockchain in Real Estate?
Those still on the fence about blockchain’s long-term effects in the real estate sector would do well to examine the data. You’ll have a much better grasp of the technology’s potential if you do so.
Businesses in a wide range of sectors spent roughly $6.6 billion that year on blockchain technology implementation. It’s roughly double what it will be in 2020.
Blockchain investment won’t slow down, though, until much later. Worldwide spending on this innovation is expected to increase by 48% per year over the 2020–2024 forecast period, as reported by the IDC Worldwide Blockchain Spending Guide. It’s a sign that blockchain technology is being used rapidly all across the world.
By the way, this technology is being adopted by a wide range of sectors in an effort to boost service quality and decrease operational expenses.
Therefore, the retail sector, of which real estate is a subset, stands to gain from the adoption of blockchain technology. Let’s learn the pros and cons of blockchain’s use in the property industry. After reading this, maybe you’ll give blockchain software for real estate a second thought.
Which Significant Issues Does the Blockchain Solution for Real Estate
Growth in the commercial real estate sector has slowed in recent years. It ran into issues that continue to be impediments to its market growth.
The development of blockchain technology, meantime, contributes to the creation of answers to these problems. So, let’s discuss the most pressing issues plaguing the real estate sector and how blockchain solutions might ameliorate them.
Failure to Provide Necessary Information and Sluggish Service
Lack of communication between contractors is a major source of corruption, fraud, and money laundering in the real estate industry, which in turn stunts the sector’s development.
Shared, encrypted databases are a key feature of blockchain technology, which has several applications in the real estate industry.
As information about leasing, buying, and selling properties becomes more widely known, real estate agents are less likely to inadvertently compete with one another. The importance of this new technology is best illustrated by multiple listing services, which aggregate property-level information from the private databases of brokers and agents.
The blockchain-enabled database can be used by a wide variety of unrelated parties, but only those who have legitimate access to it. Owners, tenants, lenders, investors, operators, and other service providers involved in real estate management will be the only third parties with continuous, instantaneous access to all relevant data, as well as the means to update or add to it as necessary.
Blockchain allows all parties involved in a real estate transaction to have access to and use the same ledger. Their concerns about the reliability of their data are unfounded.
Consequently, blockchain enables the development of a platform for all stakeholders for a secure, transparent, and quicker communication, automation, tokenization, and access to real-time information, all of which are highly prized in the real estate industry.
Managing or owning titles that aren’t 100% safe
Inadequate record-keeping is a further issue in the real estate industry.
Blockchain technology provides everyone with unique digital identities that can’t be stolen or misplaced. Titles, liens, and financial information related to real estate can be kept more open as a result. Title firms can now be eliminated as intermediary thanks to this technology.
Payouts that take too long and aren’t secure
Many real estate deals have stipulations, take a lengthy time, and require secure transfers. Therefore, blockchain application development facilitates a more streamlined transaction.
Title clearances and lender approvals are two examples of contingencies that could delay a purchase-and-sale transaction. Blockchain technology allows real estate firms to verify the execution of transactions and the fulfillment of associated requirements.
Real estate also suffers from the requirement for increased security and defense against malware. Blockchain addresses this problem by introducing a more stringent protocol for encrypting data.
For the Extobit bitcoin exchanger project, we used it to encrypt all database transactions to protect against data breaches.
Here’s another convincing use case for blockchain technology: the Swedish tax agency that adopted it and wrote the book on how it works to facilitate real estate transactions.
The use of blockchain technology in the property industry is only going to increase in importance each year. We strongly suggest you start using it immediately. With our assistance, you can build a blockchain-based property solution.
By combining this knowledge with our expertise in blockchain development, we can advise you on the optimal combination of features, cutting-edge technology, and user-friendly layout for your solution.