Revolutionizing Real Estate with BlockchainBy CIO Applications
Real estate is one of the oldest industries and has been boosting the global economy for a long time. The processes between listing a property and closing a deal involve various checkpoints in the form of stakeholders, data sources, service providers, regulators and government agencies. Miscommunications, data inaccessibility, and transaction delays are some of the challenges many real estate professionals face on a day-to-day basis. Any solution to these challenges needs to acknowledge the tangled network that the real estate industry is. The understated connection that lies between the industry and the data involved in the buying-selling process also requires consideration.
Blockchain provides the right approach to address these predicaments by helping to create open communication channels between the present real estate networks. These channels help design a publicly-owned ecosystem on which individuals and corporations control the data they generate. Multiple entities present within the community manage this ecosystem.
With Blockchain, community members can assign each property a unique identifier (a hash) that permanently records data on a universal ledger. Users can reference the recorded hash for a property’s name and other details. This globally accessible information system of various properties creates a sophisticated real estate ecosystem that encourages the firm and agent control the information flow. It is a win-win situation scenario for buyers and sellers alike.
Blockchain has yet to overcome challenges such as privacy, regulation, and cross chain interoperability. Even so, the future of blockchain technology in this industry looks very promising.