Traditional real estate is incredibly complicated: it’s risky, time-consuming, complex and above all, it’s expensive. Home inspectors, real estate agents, banks, local governments – everyone needs to sign off on your transaction before completion. Today we’ll outline clearly and simply just how blockchain technology simplifies the process of purchasing real estate.
The process of owning a house can be daunting, and dependent on many complex and regulatory factors, which require multiple intermediaries to be involved. Thus you will be paying a large cut at every step as the process is too complex for most to navigate alone. This is where the blockchain comes in: smart contracts can be used to drastically simplify the process by codifying housing rules and regulations on the blockchain. The smart contract, using the database of rules and regulations concerning the sale of real estate in the prospective seller’s location, could generate contracts, tax records and anything else required to make the sale of the house instantly. A prospective buyer could agree with the seller and send their digital signature to the contract, verifying their purchase and updating all the documents as required.
As explained before, another possibility is the introduction of cryptographically secure fingerprints, with each plot of land and landowner displaying a unique ID, in which, because of the blockchain’s immutability, the records of which could not be tampered with. This would create a system of verifiably opened land that could be easily transferred, bought and sold in a crytographically secure manner.
The way that these transactions happen are no different to now, other than an NFT or a smart contract is now tied to your piece of real estate property. The difference is simple: All of this is happening on the blockchain, which means no more waiting for the bank, the realtor, or a title company. The thought of cutting out all of these third parties is understandably disconcerting for many first time potential customers, but due to the time and costs it cuts, it is impossible to ignore the value added.
It is undeniably true that Real Estate may not stay as it is forever. It is looking increasingly likely that real estate transactions and investments will, in the future, take place on the blockchain, as people begin to realize the potential value that they hold. Whether or not you’re ready to take the step, NFT Real Estate is something that’s worth investing time into. If you’re a real estate inventor, a homeowner or in business, it’s something worth researching due to the value it holds. There is a real possibility that NFT and crypto will have a big role in the future of real estate, and we have tried to explain how.
We hope you found this piece helpful!