Blockchain has begun changing the way we operate online, particularly in regards to transactions and information sharing. Originally created to support the emerging cryptocurrency bitcoin, blockchain has grown into it’s own respected platform.
What Is Blockchain?
Blockchain is making it easier for companies to make major transactions across the internet without the need for a middleman. Intermediaries like stock exchanges, credit card companies, banks and governments can all slow down the process, which can also make it more vulnerable to fraud or crime. It makes sense for blockchain and bitcoin to be closely linked to the real estate industry as it’s one of the few industries which involves staggering amounts of money being exchanged between various parties.
Tokenisation aims to split ownership of assets by using cryptocurrency which is then turned into tokens stored on the blockchain. Those who want to invest in luxury real estate now have the opportunity to resell their share on the open market by secondary trading. This also means that people across the globe have access to the same investment opportunities, no matter how much money they have to invest.
Through tokenisation, landlords have the ability to sell off just a portion of their property and still own the majority. Commercial property management companies are already taking note of what this means for them. It’s believed that over the next few years this way of buying and selling property will become the norm, especially for bigger investments.
Title insurance has grown to become a $15bn revenue industry by ensuring buyers that their property is void of old liens and debts. Depending on the property’s geographical location, every county has their own way of storing data. This could be the old-fashioned way of filing away printed paper or storing the information online the modern way.
However, if all property title was on the blockchain, there is the potential to save a lot of time and money. There’s even the possibility that it could eliminate the need for title insurance altogether. Information such as construction and improvements could be added to the title so people know exactly what they’re buying when they invest in a property.
There is a lot of paperwork exchanged between various parties when a house is sold. A transaction using a clever contract is simply between the buyer and seller, with no need for a third party or human interaction. A concept heavily concerning for the property management Manchester is known for, as this means they’ll be required less during the process. On the other hand, for buyers and sellers the process is greatly improved as transactions are quicker and far more safe, with less chance of fraud.