Is Blockchain the Future of Property Ownership
Cryptocurrency investments are proving to be bullish, which is why Americans are now leveraging these digital currencies for an equally worthy investment: real estate. Ryan Serhart, CEO of the eponymous real estate brokerage, noted an uptick of investors purchasing properties with cryptocurrency. Due to this rising trend, Serhant believes that 50% of real estate transactions will be paid with cryptocurrency in the next five years.
However, that’s not the only development in the real estate landscape. Serhant also predicts that blockchain technology, the backbone of cryptocurrencies, will be the future of property ownership. As a result, property ownership can be more accessible and safer—all thanks to blockchain technology.
Technology is Changing Real Estate for the Better
Technology is essential in the real estate industry now that we’re in the digital age. Smart homes have become one of the top real estate trends because of the increased security, convenience, and insanely cool perks. For example, our ParqEx smart parking solutions let you access your electronic doors or gates by simply tapping your phone or pulling your car up to the access point. This smart technology also gives you greater security and control over your property, wherever you may be.
Many companies are slowly integrating blockchain technology into their practices. This system records data in codes that are impossible to change or hack. While many use it to secure cryptocurrency exchanges, blockchain can make any data exchange secure. Companies are already using blockchain to protect smart contracts, maintain home security, and streamline land registries. You can expect that it will further be leveraged for smarter processes.
3 Applications of Blockchain in Property Ownership
Given the rise of smart homes, it’s no surprise that property owners are also sealing the deal with smart contracts. Like smart devices, these contracts aim to provide security and convenience to the parties involved.
These contracts are changing accounting because the terms are translated into codes kept in a decentralized blockchain network. Once you sign the smart contract, the codes will process the invoices, bank balances, and accounts instantly. The blockchain codes also have unique fingerprints that ensure the safety and legitimacy of the real estate transaction, which brings a sense of security to both the buyers and the brokers.
Smart homes send and receive information about different parts of your property using a technology called the Internet of Things (IoT). For example, our Access + technology is connected to IoT devices, which means homeowners can open doors, elevators, or gate arms through their smartphones. Plus, this innovation updates you about the individuals entering or leaving your property in real-time!
Some homeowners are even going to the next level by increasing their home security with IoT devices and blockchain technology. Blockchain technology increases the security of your IoT devices by storing the data exchange in a secure network. In addition, the data regarding your home is encrypted, so only you can view and access your property.
It’s easier to make things official with blockchain, especially if you plan to register your land. Previously, physical documents were used to document land registration. However, many are urging for the switch to blockchain to be more efficient and transparent.
Blockchain-based land registries are becoming an asset since landowners can assert their rights using a publicly verifiable record. This increases the resilience of land ownership, making your entire property more secure and valuable.
At present, blockchain is already vital in property ownership. But given its potential to speed up processes and secure data, the real estate industry can only expect property acquisition to become smarter with blockchain.
Article written exclusively for parqex.com
Author: Rosetta Jolene