Blockchain technology is commonly associated with and referred to as digital currencies or cryptocurrencies like Bitcoin, Ethereum, Litecoin, and more. However, it goes far beyond just that. This piece of technology has made its way into virtually every known industry and with good reason. Blockchain technology has provided an ultra-fast and secure way to initiate and complete transactions with ease. It has also paved a way for the real estate sector to modernize, offering buyers and sellers an experience that will quickly become the new normal when it comes to acquiring or disposing of property. Here’s how.
Tokens: Digitizing Rights to Assets
At the core of the blockchain, process lies tokens. These tokens serve as the digital rights to real-world assets and are securely recorded on a public ledger. The information contained in these tokens includes time-stamp records like deeds, surveys, parcel numbers, and more. This means that title ownership can quickly and efficiently be authenticated and verified digitally, saving time, which also saves on costs for all parties involved.
Tokenization Can Also Consolidate the Transfer Process
As you may be aware, the real estate industry was built on a paper-based record-keeping foundation. In today’s modern world, this antiquated process can no longer suffice nor support the industry as consumers and brokers alike are on the constant search for a quicker and more secure way of completing real estate transactions. The typical transfer of ownership is often a time-consuming and costly process as it must go through several entities before a deed can be generated. Because blockchain technology uses tokens to digitize rights to assets, it has consolidated the transfer process by allowing users to program tokens to auto-generate deeds.
Managing Rental Properties
In addition to using the technology for procuring and selling real estate property, the tokenization process can also be used to manage rental properties such as receiving payments from tenants. This helps property owners reduce their daily operating costs while also offering convenience to their tenants.
The Bottom Line
While blockchain technology offers the real estate industry an abundance of cost and time-saving benefits, it is still relatively a new piece of technology that is yet to be fully embraced. The untapped potential of using blockchain technology may be the solution the real estate sector has long been searching for, especially during these unprecedented times.