Blockchain real estate market could help with creating new business models, connecting potential buyers and sellers with greater efficiency and ease. This technology has the ability to serve the real estate industry in a trust environment, while improving efficiency and cost-effectiveness in property transactions.
The Blockchain creates a public ledger, which holds the information about all of the transactions conducted on the network. By its nature, it is a fraud-resistant system and does not require the numerous middlemen who are usually included in traditional real estate transactions.
According to a survey conducted by World Economic Forum in 2015, 58% of people expect that 10% of global GDP data will be stored in Blockchain by 2025.
While there is huge potential for blockchain start-ups in the real estate industry, many companies will nevertheless require support from the governments in the countries that they operate. Start-ups who experience rigid governmental regulations towards their new business models will face the greatest challenges.
The Property Council of Australia has said that “the first challenge is the technologically-difficult task of shifting title transfer and land registration from a database, one which is usually state controlled, to a distributed ledger system.”
Looking at the Ukraine, Propy has partnered with the government to allow online purchases of Ukrainian real estate by foreign investors.
This means government regulators are establishing clear, uniform guidelines for blockchain transactions.
ICOs are starting 2018 on a high note even as Bitcoin slumped. The downturn has been blamed on everything from the prospects of more regulation and to the unwinding of hedges.
Blockchain technology and cryptocurrencies have been making a strong impact on payments remittances, and foreign exchange system across the world.
Real estate hasn’t escaped blockchain disruption either. Traditionally, transacting high value assets such as real estate exclusively through digital channels has been conducted offline involving face-to-face engagements with various entities.
Great times for real estate are coming, and we are witnessing the beginning of a major shift in real estate and this shift is mostly related to cryptocurrencies and blockchain technology.
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