The Bitcoin technology is transforming literally every possible industry on earth and the real estate industry is not spared either. The real estate industry knows that and some of the companies involved in the business are trying to keep up with it.
The potential of blockchain technology in real estate
The commercial real estate industry is a lucrative business. In a recent article on the National Association of Industrial Parks (NAIOP) – A Commercial Real Estate Development Association, blockchain technology can turn out to be a game changer. Some of the applications of blockchain technology in the real estate industry include
Blockchain is known for its immutable property. Anything once entered on the blockchain will remain there forever. All one can do is update the records by making a separate entry which makes it ideal for recording the ownership of the property. While maintaining the history of change in ownership the use of blockchain based real estate ownership registry will also prevent fraud.
The use of smart contracts powered by blockchain technology will open up a whole new avenue for investors, both big and small. It is virtually impossible for small time investors to invest in big projects at the moment. But smart contracts can make it possible for people to crowd invest in big projects, with the share of each person recorded on the blockchain. These smart contracts can be set to automatically allocate a share in profits equivalent to their percentage of investments. By doing so it will not only provide an opportunity for small time investors but also provide the much-needed liquidity to the developers involved in executing the project.
Similar smart contracts can also be used to employ contractors and pay them based on their performance.