The growing prevalence of blockchain is altering the way we share databases and processes. Transforming many industries, this type of technology is having an especially significant impact on the real estate industry.
Blockchain technology can dramatically improve cybersecurity in real estate. [Inc.com says that the role blockchain could play in real estate has the potential to “dramatically reduce the potential for fraud and enable us to access much more data on individual properties and homeowners.” Likewise, blockchain technology has the ability to improve the efficiency of transactions, [utilizing cryptograph] to create unique individual identities for users and therefore leading to much more secure sharing of consumer financial information. As this type of technology can make information and data more accessible, it can also accelerate the financing of properties by compiling users’ financial records into one location.
Another area upon which blockchain can create improvements is pertaining to title records in buying/selling real estate. The majority of these records is dispersed, and blockchain can be used to create a centralized database for titles; this could work by a process similar to one that [Cook County, Illinois used], where digital tokens were provided when a customer purchased a property. The tokens also came with documentation that proved ownership, and thus, this type of scenario could prove that paper deeds are unnecessary, by replacing them with tokens. Additionally, blockchain technology can create and sustain business agreements through smart contracts and automation.
Overall, the potential for blockchain to make a significant impact on the real estate industry looks promising. Not only can this type of technology streamline many processes pertaining to securing financial transactions of home/property owners, but it can also create many benefits for reducing paperwork by digitizing and centralizing data and information related to deeds, title records, listing agreements, contracts and more. Technology has the power to make a monumental transformation in the current real estate ecosystem, and blockchain is one of the major catalysts leading this movement.