Block chain, the technology that back cryptocurrencies, is changing the real estate market. Block chain removes the hassles of legal agreements and eliminates the need to exchange paper money.
If you haven’t been keeping up with technology, block chain is a record-keeping transaction or agreement between one or more parties that includes smart contracts, voting and elections, supply chain management, property rights, criminal records, and personal records and credit history. A block chain can record, encrypt, and protect that information for eternity, which makes it perfect component for real estate.
Block chain has the potential to change the way real estate transactions are conducted. Things like smart contracts, escrows, and property records can be completed while money can be distributed without title companies or attorneys present.
Block chain can make buying a house completely digital. Think of it like online shopping. Find a house, add it to a virtual cart and then complete the transaction. Block chain will then ensure that the buyer gets the title or deed to the property and the seller of the property will receive the cash. The title or deed to the property will then be recorded via blockchain to the appropriate public records. This completely takes the “middle man,” the attorneys or anyone else involved in the property, completely out of the process.
Money and transactions in the real estate industry are also changing through the usage of block chain. Anyone purchasing a property will use a form of cryptocurrency, whether it’s Bitcoin, Litecoin, Ethereum, or Zcash, to acquire the property and then the transaction will be encrypted through the block chain network. Block chain does not require each party to know each other to be able to process the transaction. The transaction can be completely anonymous between party A and party B. This change is already starting to pop up throughout real estate and brokers are adapting and adjusting their businesses to enable the transactions.
Block chain is streamlining the real estate market by allowing buyers and sellers to share data and money securely. This is allowing information to become more accessible, cuts out meeting with an attorney or title company, and reduces the risk of a fraudulent transaction. Eventually, with advancements in technology and the increasing popularity of cryptocurrency, the amount of transactions processed through block chain will continue to increase changing the way companies and even individuals purchase property.