Trust is probably the single most important word that comes to mind when discussing the biggest impact blockchain technology will have on our everyday lives. When it comes to real estate, the concept of trust is at the forefront of an industry relying on antiquated systems, so desperately in need of change. Combining the worlds of blockchain and real estate is the natural evolution of how we will do business in the future.
Real Estate transactions are littered with inefficiencies stemming from a lack of transparency during the entire process. Due to this lack of transparency, the time it takes for all parties to submit and receive the required forms is needlessly prolonged.
From start to finish, buyers and sellers must rely on a whole bevy of intermediaries to ensure that their transaction is completed securely and correctly. Not only that, once title is transferred properly, buyer must ensure their claim will remain valid and free from fraud or theft in the future. In order to do so, buyer must rely on the local County Assessor’s Office to maintain all documents properly, many of whom still rely on paper filing. There's a lot of things to worry about. In 2008, The FBI even wrote a detailed article detailing the rise of "House Stealing".
How Blockchain Will Help
The advent of Blockchain technology can solve all these issues. What makes the Blockchain so special is its publicly decentralized, tamper resistent nature, where all data is stored. In essence the blockchain acts as a public ledger, that is not controlled by any one particular entity, but rather is run by a series of nodes. These nodes are the ones responsible for validating all the transactions throughout the entire network.
Imagine a scenario where you believe you are the valid property title holder. In comes along another individual who claims title to your land. If the title conveyance was recorded on the blockchain, the rightful owner could be quickly verified with a simple click of the mouse. Once something is recorded on the blockchain it cannot be reversed or changed. Fast, efficient, stress free. This is the way transactions should be done in the 21st century.
The Future of Real Estate using Blockchain Technology
Myself, and many others, can imagine a day where all of a properties entire history will recorded on the blockchain. It will be extremely easy for an individual to get all the details about a specific property. This technology will help speed up the entire real estate transaction process significantly, as there will be no delays in obtaining different reports from different intermediaries. Everything will be uploaded, facilitating an easier transaction, for all the parties involved.
We are still a long ways from this vision becoming a reality but its exciting to think what the future holds. There is no doubt in my mind that this revolutionary technology will change the real estate industry as we know it.