Blockchain can change our world more than people imagine. And we've seen it repeatedly happen. It takes things with real value in the conventional world and makes them more valuable by backing them with transparency, security, and global inclusiveness.

Real estate denotes land and improvements. Improvements here mean those things attached to the land, including water, trees, buildings, minerals, fences, etc. 

Usually, real estate transactions are physical and involve in-person communication to finalize, but the emergence of blockchain technology has disrupted this norm. 

Today, we’ll discuss the top 5 uses of blockchain technology in real estate:

1. Trust

In one sentence, Blockchain is ‘The new technology of trust’. This is perhaps the most innovative reason. Blockchain is useful to all sectors because with trust comes security.

There is a degree of trust required to carry out real estate transactions. Buyers don’t want to be cheated, so they prefer to buy from realtors they trust. Realtors spend time trying to build buyer trust. Blockchain removes that constraint because it is transparent and serves as a public ledger where information can be recorded and confirmed.

2. Tokenization

The conventional method of owning real estate requires that a buyer purchase an entire property or that buyers come together as a pool of investors. The land is not divisible in bits and can only be sold in square miles, kilometres, and acres.

Tokenization allows fractional ownership of properties. The act of tokenizing means that tokens are issued to represent a real tradable asset digitally, in this case, real estate. Tokens like this are called Security Tokens.

With blockchain integration, buyers with limited resources can own properties and receive rental income from them.

3. Lower Barriers To Entry.

Fractional ownership allows almost anyone to be an investor in real estate property. It no longer becomes an investment opportunity for people of a certain class or age but becomes an investment platform for everyone.

4. Time & Speed

Blockchain technology eliminates the need for third parties in real estate transactions. This would directly affect the time needed to acquire properties and increase transactional speed.

5. Liquidity

Tokenization allows digital tokens to be created to represent real estate. These tokens are a type of cryptocurrency and can be readily traded in the crypto market.

Undeniably, this makes for good debate regarding integrating blockchain technology into real estate.

To be Cont'd