Cryptocurrencies are increasingly present in our day to day, and with it the use of their technology, called and known as Blockchain. Most of the headlines are focused on Bitcoin, as an asset, most of the most relevant applications in reality, of focusing on its technology, the blockchain or "Blockchain", which is transforming industries, including the real estate world, this will help to convert these more efficient and modern sectors.
In Tokenhome we will launch a project where we will use the Blockchain to verify all the steps, the payment will be made in Tokens and a smartcontract will regulate the distribution of benefits and will award the percentage of each property to each investor, so from this article, we want you show how the Blockchain, has such an important impact on the way of doing business in the real estate sector.
Data of the MLS property.
The Blockchain is the ability to share databases and processes. This opens promising opportunities to make real estate data, which is central to the process of buying and selling homes, more centralized and accessible.
Each real estate transaction goes through the multiple listing service (MLS), which tracks which agents represent which clients, contracts, listing agreements, valuations and more. However, the MLS is notoriously fragmented. The information is decentralized and restricted, which hinders access to people who are not real estate professionals. It is also often outdated, making it difficult for an agent to make comparisons and detect trends.
Blockchain technology can be used to overcome these barriers within the MLS. By providing a way to share data in a secure manner, the Blockchain makes possible an international shared database, which provides real-time access to property information directly from the source and allows a more comprehensive view. It also opens up more opportunities for collaboration between property owners.
Title records are another decentralized and challenging aspect of access to the asset purchase / sale process. Even in 2017 the title information remains stored at the local level and is offline.
With the Blockchain technology, all these problems will be solved and will facilitate the processes for buying / selling / renting real estate. This process works in the following way:
When someone buys a property, they receive a digital token and traditional writing. The attached documentation of the token transfer is used as proof of ownership. Tokens could become the standard of payment and information, and take the place of facts on paper completely.
The Blockchain can provide a central database of titles for the whole country, to securely store and instantly access the historical records of the titles, which allows to expedite the transfer of securities in a sale of properties.
The third real estate area that the Blockchain will transform is the efficiency and security of the transactions. The Blockchain does not require that there is trust between two parties to conduct business. Each user has a unique identity in the Blockchain through cryptography, which means that consumer financial information can be shared securely with other parties during transactions. A person can send funds to another person who will not release until the transaction is formally completed.
This security layer speeds up the transaction management process. Whether the buyer or the seller are in the same place, the financing of the property is accelerated by the existence of a centralized financial record for each party.
The Blockchain technology, optimizes the real estate system, by allowing people to share data and money safely and efficiently. It makes information more accessible, cuts intermediaries and reduces the risk of fraud and theft.
All this is simplified in that it will be a safer, faster and more reliable process to buy, sell and rent properties.