Blockchain can be implemented in unique ways to revolutionize various industries. Here it applies the concept of tokenization and crypto in real estate to glide through a mist of inherent setbacks.
The blockchain is a technology involving a decentralized ledger of all transactions along a chain through a peer-to-peer network. This technology enables subscribers to make transactions eliminating the need for a central certification authority. The blockchain network allows cash transfers, transaction settlements, financing, and many others. As its title states, the blockchain is a chain of cryptographically encrypted blocks containing a specific record of information. After a transaction, the information recorded within a block can not be tampered with since the downstream blocks verify the upstream transactions.
In the context of real estate dealings, there are a number of benefits that the blockchain offers over the conventional approach. In a nutshell, blockchain can be used to transfer the purchase value of the real estate through cryptocurrency as well as through initial coin offerings (ICO).
Issues That Dampen the Real Estate Market
Inaccessibility – A real estate venture is ridden with multiple regulatory, financial, and geographical barriers. This adding to over-dependence on third-party intermediaries make investment a cost-intensive affair; certainly not an average person’s investment tool.
Lack of transparency- Among the issues that plague most systems, feature, corruption, money laundering, and tax evasion attempts, and so on. The real estate business demands a higher degree of transparency to alleviate the illicit financial flows, turning them into taxable revenue.
High transaction cost – Involvement of multiple middle-men in the form of lawyers and accountants incurring fat fees related to exchange, transfer, brokerage, tax, etc. make foreign real estate investment greatly pricey.
Low liquidity – The high-risen barrier to entry, intermediaries involvement, complex transaction processes, a series of regulatory hurdles, and high fees culminate in the low liquidity of investments.
Financing issues – The demand for substantial capital upfront repulses the investors towards alternative investment tools. Even a good credit score in the native country does not suffice when buying a property in a foreign country.
Lengthy transactions – Transactions are exceedingly time-consuming in nature. It may take over six months to spot the property and another six months or more to wind up the process when dealing in foreign real estate.
HashCash Solutions: Cryptocurrency in Real estate
Blockchain in real estate enables smooth purchase and sale of property by the use of Crypto in real estate purchase. It is now a popular trend to buy properties with Bitcoins. This makes transactions seamless and the transaction fair. It is actually safe to say that crypto in real estate has reached beyond a mere ‘concept’ phase. It is actually beginning to materialize with identifiable signs of rising popularity.
HashCash solutions utilizing crypto in real estate with a set of strong features:
1) Transparency – in the creation of a global repository with improved transparency of operations.
2) Efficiency – Bolstering efficiency through elimination of banking, notaries, attorneys, and other intermediaries
3) Accessibility – Enhanced accessibility through diminished investment barriers made possible by facilitating fractional ownership
4) Secure storage – ensured by maintaining user’s funds in cold storage powered by multi-signature technology
5) 2-factor authentication protection – Changes to account settings, withdrawals, and likewise actions are secured by the enforcement of Two-Factor Authentication
HashCash Solutions: Tokenization in Real Estate
HashCash brings in yet another Blockchain solution in real estate by way of tokenization. Tokenization is a process of dividing the net value of a property into smaller units that can be converted into tradeable coins and be bought or sold on an exchange. This fractionalization of the property further serves to bring down the investment threshold, thereby enabling its accessibility to average investors.
The benefits of Tokenization are many-fold:
High volume Liquidity – Dividing properties through a real estate tokenization platform induces high volume liquidity that opening up to more buyers into the market and enabling them to buy and sell properties efficiently along with the quick conversion of real estate values into cash.
Fractional Ownership – Tokenization allows fractional ownership of a property enabling the owners to split the value of shares and ownership. This reduces the distress in terms of maintenance and taxation, that otherwise burdens the single owners.
Globalization – Real estate tokenization through a platform expands the business opportunities related to property ownership by transcending geographical barriers. It rakes in voluminous profits by facilitating tokenized real estate trading around the world.
Elimination of intermediaries – Tokenization of real estate assets enables the users to make peer-to-peer transactions eliminating any third-party intermediaries. This process cuts the extra costs and promotes secure real estate investments.
Immutability of Blockchain – The integration of blockchain in real estate tokenization platform offers immutability of transaction records making it tamper-proof or incorruptible while protecting the user and asset-related data through enhanced privacy and security protocols.
Efficient and Instantaneous Transactions – Real estate tokenization restructures the usually lengthy process of conventional property buying and selling by streamlining the transaction process, thereby, making it peer-to-peer, quick, and efficient.
HashCash explores the infinite possibilities that blockchain technology is capable of simplifying the often convoluted structures of asset classes and render them marketable. Blockchain in real estate and crypto in real estate are live examples proving the statement.