Because of the security advantages of blockchain, CIOs and CTOs across the globe have realized its importance. Blockchain technology has already expanded its reach into IT-driven supply-chain management and postal services. The next frontier is real estate, and we can already see its footsteps entering this arena. Let’s dig deeper into how blockchain in real estate is ‘building’ the world for us.

Improving raw material supply

In developing and corruption-ridden economies, engineers are occasionally supplied with cheap-quality raw materials, resulting in improper and unsafe constructions. This usually happens due to a lack of transparency in supply chain management processes. With the help of blockchain technology, engineers can keep a track of the quality and the source of raw material that they require to build infrastructure and buildings.

Speeding up the buying process with blockchain in real estate

Relying on the web to find relevant properties is now a norm. Blockchain can help buyers searching for relevant properties ensure that the seller is authorized.

With the help of blockchain technology, the tiresome process of loan applications can also be minimized as blockchain authenticates the applicant. This helps in reducing the stress of bank officials and help buyers acquire loans faster.

Making transactions fraud-proof and secure

Frauds are common in traditional ways of buying a property. Often, thieves pose as sellers and contact buyers interested in a specific property. After gaining trust from the buyers, these scamsters ask them to make a security transfer to a third party’s account. Post-transfer, these sellers, and the third party disappear, defrauding the buyer of their money.

Blockchain in real estate can potentially remove these fraudulent practices. With publicly available ledgers verifying authentic sellers and discerning them from the scam artists, buyers can check if the seller is authentic or not. Only when convinces, the buyer can take a decision on whether she wants to buy that property or not.

Increasing transparency in government organizations

Identity checks are mandatory when it comes to buying a house. These checks often take more than one visit to government offices, which becomes tiresome.

Blockchain technology can help in such a situation by using its online identity system, which can include verified identities stored on public ledgers. Blockchain can assist government officials to view these ledgers, saving officials time in finalizing the sale and change of titles. With such a process, the blockchain also significantly reduces the need for buyers and sellers to visit government offices several times.

Once the deal is ready to be executed, blockchain-enabled smart contracts can store details related to the agreement, which can be referred to at any time after purchase. These contracts can also be used to establish a chain of property ownership when future transfer of titles occur.

Can you think of other applications for blockchain in real estate? Let us know in the comments below.