Real estate investors have made adjustments to make sales in the real estate market in the past. Large capital requirements and expensive intermediaries–as well as investments that aren’t liquid–have hindered investors in the past, according to Commercial Observer. Blockchain hopes to change all that as a disruptor.
Blockchain has been used significantly as a ledger software or wireless transaction aid for real estate, depending on the user. Its possession of a database that can be used by many people have been particularly useful for real estate; new records are stored in “blocks,” and after validation using “cryptographical” technology, it is then connected to another block, forming a “chain.”
While all of the mentioned benefits are important to blockchain as a disrupting tool for real estate, CEO and co-founder of Meridio Mo Shaikh has another idea. Blockchain’s connection to the real estate industry lies in an important facet of real estate, one that is always highlighted in most transactions whether or not they are in the blockchain-in liquidity.
With blockchain facilitating digital shares, there would be lots of liquidity created-enough to create and fuel a secondary market. In this market, a digital one, buyers will be able to create and sell digital representations of real estate. Some would even be able to break this down to pieces of real estate, coins representing properties like apartment units to even skyscrapers and high-rise condominiums.
Technology is the next big leap, but Bizjournals‘ article preached patience. While blockchain represented an obvious and beneficial shift, it is highly suggested that the shift must be led by professionals who know what they are doing. It cannot be done in one swift motion-it should be done little by little, with a gradual shift happening instead of a drastic one.
For the disruption to be successful, it should start like buildings in the real estate industry-piece by piece, brick by brick, until the entire process is fool-proof.
That being said, the potential use of blockchain is endless. Accounting and other tax processes can be done seamlessly and in real-time, only faster. The technology has a lot of uses in the industry, from storage of land and titles to lease agreements being easier to complete even if the parties are miles apart. Blockchain and technology can indeed make real estate easier to understand and get into.