In this digitalized world, every single business is booming due to the rapid growth of technology. One of such products of technology is the blockchain. Before discussing how it has become one of the required things in business, it is important to know what a blockchain is. It is a process chain for protecting, storing and also authenticating data of the business. These data can be financial to legal to anything. It can be regarded as a digital ledger in which various transactions can be made by using bitcoin or cryptocurrency. All the transactions here are also recorded and stored. There is no scope of data missing whenever needed.
Now, let us discuss how blockchain technology is helpful for commercial real estates and why such businesses start using it immediately. Have a look at some of the basic reasons behind it.
Reasons for Including Blockchain in Real Estate Businesses
Common Open Ledger for Both Client and Seller:
Blockchain is the only way where there is an open sharing of data with a common database in a distributed fashion. The shared database can be very critical and it can also be confusing to the owners.
Multiple Listing Service:
When you use blockchain for transaction purposes in real estate, you can add as many services as you can. Real estate businesses can have a series of clients from different service. So, if you use a blockchain, then you can easily make different categories and add services to that. This can help the business persons to understand which service has made transactions and of what amount. This is due to the fact each record of the transaction is mined by miners before storing persistently as a block.
Modifying of Database:
Main property of blockchain is Immutability, which does not permit the stored data to be manipulated so each new transaction or update of any transaction take the form of new state in the blockchain. But yes, it does not mean that modification is not possible here it’s said as state update.
This feature makes Real Estate data very reliable so no party can claim for one’s land or no party can refuse to any amount tendered.
Cash Flow Management:
When blockchain is used for commercial real estate business, then the cash flow management can also be done in a systematic way. There will no longer any anxiety about the cash management and you also do not have to run to the banks to know the details. With the implementation of the blockchain, you can also find out how easy it is to do lease payments, and other clearances at one go. As, this is the best way to maintain the whole transaction process just in one sheet. So, blockchain will definitely make the work easier.
When the business is handled by blockchain, then every single thing is digitalized and self-executing contracts become a strong source of information and other data. Therefore, this can help in generating security and privacy with full transparency.
The blockchain market is expected to grow to $20 billion by 2024.
In blockchain, Smart Contracts have become a major part. This is because; it is like a digitalized agreement where no mistake or any discrepancy can be done. When you engage in a third party contract in real estate, there can be a chance of cheating, but with smart contracts, there is no such chance.
A contract like a traditional contract with rules is written in blockchain as code and accessed in open ledger. A triggering event like buy date or transaction date has occurred and the smart contract executes itself as per coded logic. The output is saved as a state into blockchain on multiple nodes.
The smart contract eliminates the role of middle man or escrow completely.
In this world full of technological upgradation, the blockchain has become an indispensable part because of the simple fact that it is transparent to all the parties. When any transaction is made, then it is open to all and every single person involved in the business would know about it. Therefore, when it is used by the business, it is known that all the data and other related information is encrypted. Therefore, it is the safest thing to be used in the business.
Another important thing is the bitcoin which is an application of the blockchain. These bitcoins can be bought and then again it can be transferred or sold to other with a lot of ‘witnesses’ in the blockchain. As this is a profitable stance, every single business can use it for the same. These are not physical coins but actually digital assets that are transferred.
Blockchain is the best technological asset that has a lot of important applications and each is helpful for the business purpose. There are applications that are very much helpful for the real estate businesses. It helps in developing smart contracts and also escrows and other property records can be kept. Via cryptocurrency, the work of transaction from deed to title can be done through the website. Therefore, it is also a very time saving technological upgradation for the real estate business.
The buyer-sellers’ projects and other transactions transparency are very much important for the real estate business.Thus, it is helpful and every single commercial real estate business should include blockchain for their process through a software development company.
If you are a leading real estate company or a corporate agent or individual associated with property business, with our Real Estate App Development Services, you can amplify your business. You can deliver up-to-date 24/7/365 services to your customers. Get in touch with us to have a quick and confidential analysis and free proposal for your customized requirements.