Blockchain has quickly become one of the most prevalent new technologies. The technology offers decentralized, digital ledgers that use cryptography to transmit data. Blockchain is the backbone of cryptocurrency, paving the way for monetary transactions that are difficult to track or intercept.
The business world is beginning to accept that blockchain is here to stay, with industries such as real estate set to benefit greatly from blockchain. Already, several startups are leveraging blockchain for real estate, creating smart solutions that benefit investors, homeowners or renters. These applications are designed to streamline the process of buying or selling a home, paying rent and more.
Peer-to-Peer Real Estate Platforms
Blockchain has made it possible for buyers and sellers to communicate with each other and complete transactions without a third party. For instance, Propy offers peer-to-peer services that do not require an agent to complete a deal, eliminating the hefty commissions and fees that third parties charge.
The company has listings in the Propy Registry, which is designed with smart contracts that identify and complete real-estate transactions internationally. The registry examines regional regulations and allows brokers, buyers, sellers, title agents and notaries to complete transactions with private keys generated through a blockchain-powered platform.
Propy is powered by ERC20 “PRO” tokens that can integrate users’ digital wallets with popular cryptocurrency exchanges in order to facilitate nearly instantaneous transactions with an added layer of security. Users need these tokens to interact with the Propy Registry, which allows users to change ownership of a property’s title. You can also register new titles this way.
The startup solves a number of issues that have plagued international real estate investors for years. For instance, foreign buyers can now easily invest in markets such as Dubai and London without the hassle of learning local regulations and dealing with regulators.
A blockchain platform protects the transactions and personal information of those who are buying, selling, leasing or renting since their data and financial assets are not stored in a central server. Instead, blockchain keeps this data in tons of hard drives around the world, thereby reducing cybercrime that targets homeowners or investors.
Registering Property Records and Transactions
Blockchain is tackling the issues associated with registering property records. CPROP is one company that offers an end-to-end digital transaction platform that leverages blockchain. The startup is using blockchain to authenticate and record actions associated with deeds and documentation. CPROP connects property portals throughout the world to increase the level of trust associated with real estate deals. The company offers authentication and documentation for escrows through the use of smart contracts.
Escrow agents, lawyers and brokers can sometimes be hard to trust because they’re looking to make a profit, while foreign governments and laws can be hard to navigate. Through smart contract escrows and tokenized deeds, the company increases legitimacy in real estate transactions. Plus, you can choose whether or not to make a deal based on a user’s ratings.
The business can also automate many of the tedious tasks associated with real estate transactions, and all files are stored in a secure and decentralized manner. Blockchain is effectively reducing inefficiencies and expenses with tokenization, smart contracts and workflow automation.
Cryptocurrencies in Real Estate
The use of bitcoin and other cryptocurrencies to pay rent or buy property is not mainstream yet, but some companies are making this happen. Zap, for example, is working with realtors to ensure everyone gets paid via cryptocurrency.
New York-based Bapple Realty made a commission through data that was uploaded to the Zap platform, sending $3,4000 in Ethereum tokens to the brokerage and agents who made the transaction happen. Bapple previously used blockchain to accept an $18,000 rent and commissions deal with bitcoin.
These smart contracts make sure that everyone gets their fair share. After all, real estate agents sometimes argue due to oral agreements regarding a property deed. By connecting the digital wallet of brokers and agents to a smart contract, the deal is fixed, ensuring everyone holds true to the agreed upon transaction.
CPROP also plans on rolling out a network with user ratings that offers digital coins to buyers and sellers who rate or review brokers, agents and other real estate providers. This could go a long way towards enhancing the reliability and consistency of real estate professionals.
Soon, it may also be possible for a prospective homeowner to acquire a home, along with the title insurance and escrow, through one click. With blockchain, the investor can buy the property with all its documentation using cryptocurrency. Blockchain then records the title or deed in the public records for the appropriate country or state.
Blockchain for Real Estate: Revolutionizing the Industry
The role of blockchain in the real estate industry is only beginning, but it has plenty of potential moving forward. From smart contracts to cryptocurrency transactions, the technology is improving upon the inconsistencies and inefficiencies that sometimes occur in the industry. Plus, blockchain can protect the sanctity of personal information while also reducing expenses, regardless of where you sit in the real estate world.
If you want to develop a real estate app that leverages blockchain, you will need a talented developer by your side. The team at 7T specializes in blockchain, in addition to other emerging technologies, such as augmented reality, virtual reality, artificial intelligence and natural language processing.