Blockchain: The next game changer in real estate?
12 October 2017 Posted / 7617 Views
Blockchain technology has started to hold its grip in many fields and thus replacing the older methods of technology. As the times change, different things become acceptable. Due to which, there is always a need for an innovative technology to replace the mainstream one, to enhance the structure of the economy or organizations at the basic level. The Blockchain is one such technology which is replacing many such kinds of old technologies and systems. It is such a flexible technology which a used to support cryptocurrencies as well as it can alter the methods for any field which needs a network to run on.
If truth to be told there is the superfluity of companies as well as startups that put into use the solutions based on the blockchain, in the real estate industry. In Case there might be a difference in the advancements, the blockchain becomes the common point amongst them. Most of these companies put forward some form of property tokenization. The extensive idea of tokenization is that people might invest in real estate by obtaining digital tokens that characterize real property. Such kind of tokens on one side authorize their holders, although they are not looked upon as legal, to hold a particular amount of the prospective structure equivalent to the amount which they have bought. Recently, there was news about a company which functions in Spain, the US and Caribbean Islands which charges around ten percent for the management fees, which also offers audits on monthly basis, the absence of minimum thresholds etc.
The benefits of tokenization comprise of simple and easy distribution of the profit, easy registration process, and total traceability. Blockchain also gives the advantage of verification of the transactions. Blockchain driven projects which are focused on their respective areas and real estate is not an expulsion. In the coming years, it can be predicted that if the companies which do not choose the blockchain will suffer from adversities of the market and its competition. The Blockchain is the new found fetish for the all the businesses around the globe, that is why most of the companies are testing and evolving towards the blockchain technology to prosper in the growing vying markets of the world economy.