Blockchain in Real Estate: Top 3 benefits
By Oleksii Skurikhin · Delivery Manager
- Published
- 2 min read
The real estate industry could have three primary benefits from tokenizing real estate assets.
Key takeaways
- Tokenizing real estate assets could give the industry three primary benefits: lower costs and shorter processing time, protection from fraud, and tokenized fractional ownership.
- Smart mortgage contracts can be approved as soon as all documents and requirements are fulfilled, instead of clients waiting months and going back and forth with brokers, banks and lawyers.
- Paper ownership acts can be damaged, lost or subject to fraud, while blockchain records on an immutable ledger can act as a trusted source of information for both parties to a deal.
- Tokenized fractional ownership could reduce the entry threshold for new investors and increase liquidity, since a custom percentage of a home's equity could be traded as tokens.
The real estate industry could have three primary benefits from tokenizing real estate assets, such as:
- Reduce associated costs and processing time
- Protect buyers and sellers from fraud
- Tokenized fractional ownership
Look at these huge reasons to implement blockchain more closely in your real estate business.
Tokenizing a property means representing ownership of it, or of a share of it, as digital tokens on a blockchain.
Reduce associated costs and processing time
Real estate transactions involve multiple people in different roles, lengthening the process. Blockchain technology can automate various processes by creating smart mortgage contracts that are approved as soon as all documents and requirements are fulfilled, rather than making the clients wait months for approval and going back and forth with brokers, banks, lawyers, etc.
Protect buyers and sellers from fraud
The ownership acts are usually made of paper, which we all know can be damaged, lost, or subject to fraud. The legal process of transferring ownership can be long and complicated and require a lot of money. Blockchain technology can be a great solution, as all records are tracked on an immutable ledger that can act as a trusted and reliable source of information for both parties to a deal.
Tokenized fractional ownership
The allure of investing in non-traditional assets, such as tokenized ownership, is that it could reduce the entry threshold for new investors by allowing people to release a custom percentage of their home's equity in the form of tokens that could be traded on the market. This way, we increase liquidity and give people different ways to benefit from their property or investments.
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