gimage The future of real estate

Is this the future of real estate? We are living in an age of disruption like never before. Almost overnight, entire industries are being replaced by newer, cheaper and more convenient ways to do business. Airbnb changed the way we holiday, Uber changed the way we get from A to B… and then Uber Eats changed the way tonight’s dinner gets to us.

Our real estate industry could likely be on the verge of a similar disruption. A faster, more convenient and infinitely more secure way to transfer property ownership from one individual or business to another. Cryptocurrency and blockchain are beginning to enter the real estate world, and this technology holds the promise of being exactly what our industry needs to move our business practices into the twenty-first century.

But before I explain how, let’s do a quick primer on how cryptocurrency works.

The New Kid on the Currency Block

og:image Cryptocurrency in real estate

The concept behind cryptocurrency was to create a system that eliminated the middle-man — aka the banks and credit card companies — from the flow of money as it changed hands from one person or company to another. With cryptocurrency, the transaction is recorded on a decentralized system called the blockchain.

The blockchain is a virtual ledger that records a growing list of transactions; every time money changes hands it’s recorded on a block in the chain, and once the block reaches a certain data limit, another block is added to the chain.

This growing chain of data documents every single Bitcoin or Ethereum or Doge etc. transaction ever made, and is verified and stored across multiple computers around the world, ensuring the integrity of the system and making it virtually impossible to hack or create “counterfeit” currency.

What are the advantages of cryptocurrency? You don’t have to trust your bank or credit card company records your transactions correctly because every transaction is stored and verified across multiple computers on the block. You also don’t have to pay a fee for the honour of using the bank or credit card company’s service.

It’s easy to move money across international borders. And crypto transactions are completed in a matter of minutes, unlike the days it takes for banks to authenticate cheques and larger transactions.

A Real Advantage

og;image Bitcoin and real estate

The successful cryptocurrency concept and the blockchain technology that powers it could offer several advantages to the real estate industry. In the same way that physical money has been transformed into a digital asset, real estate assets could become digital assets or “tokens.” Tokenisation could create an opportunity for multiple individuals or companies to enjoy fractional ownership of a property.

A scenario that could also be put into play when friends or couples own real estate together but don’t contribute equally, thus allowing each individual to own the correct portion of the asset. Real estate is already an extraordinary investment. Blockchain technology could take your investment portfolio to the next level.

Blockchain also eliminates the opportunity for fraudulent ownership of a property. This is because every transaction is recorded and validated by the system. Property owners could even hold their real estate assets in the same digital wallet that manages their cryptocurrencies. Blockchain could remove the number of brokers and banks, lawyers and underwriters involved in the transaction through the use of smart contracts, effectively digitizing much of the process.

Will it work in Real Estate?

Ultimately, the possibilities of real estate and blockchain are endless. From managing rental real estate and tenant relations. To home sales and investments.

og:image Various cryptocurrencies on track for real estate use?

Some people say cryptocurrency isn’t like real money because it only exists online, but doesn’t that apply to “real” money, too? Whether you get your paycheques deposited directly into your bank account. Purchase a pair of shoes on your credit card. Get a new car through a dealership’s incredible financing offer. Or take out a mortgage on a new home, no physical money ever changes hands. It’s a digital transaction that takes place on computers. A lot has changed since Bitcoin’s debut over a decade ago. Economically, technologically, and also socially. Yet we’re still just scratching the surface of blockchain’s full potential. The possibilities for our industry are exciting and also empowering.

Make no mistake, the technology is here to stay. Embrace it and work with it to its full potential, or run the risk of getting left behind.

DISCLAIMER:

Verdin Property remind readers that nothing contained in this website should be construed as investment advice.  Any reference to an investment’s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 

Any ideas or strategies discussed herein should not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial objectives, needs and risk tolerance.

A Real Estate Masterpiece

Villa Heart – the jewel of La Alqueria

Presenting Villa Heart. The exquisite jewel of La Alqueria, located in a privileged front-line golf location. A true masterpiece of real estate, priced at €4,950,000.

Contact us for information and private showings.

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