The real estate sector is notorious for its complexity, and often for the lack of liquidity that is often associated with it. The lack of transparency, on the other hand, has caused historical damage, such as the 2008 bubble.
These are just some of the functions of the blockchain in this sector: to increase security and transparency and to facilitate the entry of investors with the greater liquidity that comes with tokenisation.
Blockchain applications in real estate
In a complex sector like this, involving a large number of people and institutions, the blockchain is an excellent way to make processes more efficient, secure and transparent. The following are some of its applications and advantages.
The blockchain will always stand out for the security and immutability of data. In a sector in which large amounts are moved and which involves complex operations, this transparency is essential. In cases of landlord-tenant agreements, it eliminates checks that would otherwise have to be made.
Thanks to the blockchain, it is possible to automate processes, thereby reducing or even eliminating costs that often arise from inefficient operations.
Asset tokenisation allows the investor to purchase only a portion or a certain number of tokens of a property. In addition, this option eliminates the obligation to assume the tasks and costs associated with managing the property. This lowers the barriers for investors.
Elimination of intermediaries
Smarts contracts replace intermediaries, so that fraud-proof operations are achieved and taxes, which often reach astronomical amounts, are eliminated.
The blockchain allows both the investor and the owner to monitor transactions in real time. In this way, manual and inefficient checks give way to quick validations that help to optimise processes.
In a sector that has always been characterised by a lack of liquidity, blockchain and tokenisation significantly facilitate exchanges.
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