It is inevitable, blockchain technology will reshape how the real estate industry operates in the coming years. It is going through a digital transformation of sorts.
In the past, real estate has been a traditional “pen and pencil” business. Relying on books and records to perform transactions. There tends to be an inefficient and outdated method for doing business and keeping records. This technology will transform the real estate industry, and how it operates.
If you do not know much about blockchain technology, it will only benefit you to know at least a little about it, in case it presents itself to you in a transaction soon. Then you will not be completely in the dark, and at least can have an intelligent conversation and understand the basics around blockchain technology.
From a high level, the decentralized record keeping, which is designed to instill trust in the authenticity of digital transactions, could be used to create efficient solutions for both commercial and residential real estate. This would include buying property to conducting due diligence to enabling crowd-source investments, etc.
Blockchain technology offers a form of shared record keeping which is designed to be difficult to tamper with. This will speed up the process and make transacting in real estate more efficient and accurate. Blockchain operates through decentralized peer-to-peer platforms, building resilience against the spread of corrupted data and improving resistance to fraud.
There will be a tendency to resist the change to a new technology (there always is), but there are already some real estate companies utilizing this technology. To not be left behind, anyone who plans on being in the real estate industry over the next 5 to 10 years, blockchain technology is coming, and it makes sense to get a better understanding of this technology before it too late. To further discuss this, contact Larry Davidson, CPA at firstname.lastname@example.org