The real estate industry is one of the most important industries in the world economy. The industry is expected to reach $634.90 trillion by the end of this year. In the US alone, the highest value will be around $132.0 trillion. The country is also witnessing rapid growth because a large number of people are working remotely. In this context, blockchain technology in real estate can play a decisive role in further facilitating growth and impact it in a variety of ways.

Blockchain Technology in Real Estate

The role of blockchain technology in the sector can range from connecting sellers and buyers to eliminating the need for intermediaries to curtail costs. It can also help in codifying actual ownership of real estate. 

Decentralization

Trust and security can significantly improve by integrating Blockchain technology. This is because information on a network can be accessible to all peers in that network. Immutability and ledgers can ensure better traceability and data transparency. Therefore, it is not an exaggeration to say that decentralization can significantly reduce corruption, greed, and scams plaguing the sector.

Curtail Costs

Blockchain can significantly curtail costs in transactions. Many costs can be substantially reduced or may become inessential if blockchain becomes the main technology of real estate. These include inspection, loans, real estate taxes, registration fees, and all forms of intermediary expenses. This trend may have positive implications for the future of the real estate sector because it is dominated by large corporations and wealthy individuals. It can ensure that more people can access the market. It will also result in more transparency, security, and equity. 

Provide More Scopes

Blockchain technology can offer more scopes that can disrupt the existing structures of the sector. Traditional real estate technology links buyers and sellers and displays listings. Blockchain can improve that by providing more scopes through trading platforms and online markets to support real estate transactions. 

Tokenization and Document Authentication

The sector can significantly benefit from tokenization once blockchain technology becomes its integral feature. It will benefit sellers and buyers to have faster peer-to-peer transactions. It will ensure better traceability in the network. Document authentication can also dramatically improve because blockchain has better data storage mechanisms. It can also facilitate and automatically and quickly verify multiple documents over the platform.

Real-Time Accounting

Real-time accounting is the need of the hour in the sector. Property ownership and cash flows require real-time accounting such that there is less discrepancy and more transparency. These changes will significantly improve financial statements, balance sheets, cash flows, and income statements and make auditing more reliable. Therefore, this feature alone may significantly lower the burden of legal challenges, and make regulatory oversight more precise.

Also Read- A Brief History of Ethereum

Bottom Line

Blockchain technology can play a positive role in the real estate sector. It can significantly improve transparency and make the sector more reliable. Moreover, since the sector is prone to disputes, technology can play a decent role in reducing that substantially. Proper record keeping, transparency, elimination or reduction of intermediaries, and better document verification can make a huge difference. It is also true that by making these structural changes, the growth of the sector may rise faster.