Blockchain Technology’s Impact on Real Estate
What does this all mean for Real Estate?
First, we need to understand that Blockchain has the possibility of disrupting many processes within real estate. From accounting to title business and contracts, the blockchain will be everywhere.
Nowadays, we use a small organization to research the records and give us support that the documentation available symbolizes ownership. With the initiation of a public open ledger system, the blockchain, custody of property, and the need for a secondary central repository (be it a title company or city and state public records) would not be required.
This would decrease transaction costs, state and city costs for receiving this information, and legal work connected with the research needed to transact on the property. A transaction could be recorded to a public blockchain. This same idea will also hold true for records as they too can be listed within the blockchain.
Blockchain drops the current middle-man—in the case of Bitcoin usually banks or certification authorities by using a network of personal computers that encrypt and maintain the integrity of the ledger’s contents, making all recorded transactions non-reversible. This procedural efficiency has been estimated to reduce the cost of financial reporting and settlement/clearing transactions, procedures most common in the banking industry, by up to $12 billion. For an attacker to succeed in double spending, he/she would need to amass a majority of the computing power in the system to distribute a fraudulent ledger.
Anyhow, the idea of blockchain seems to be simple in principle, the characteristics in its implementation can be very confusing. Blockchains are secured via a competition of computing power that ultimately serves to encrypt its contents. Therefore, the blockchain system of record-keeping is self-maintained and theoretically fool-proof. The integrity of the underlying value system of the coin remains entire since the ledger of coin ownership is maintained by all disparate owners of the currency and is readily accessible.
Anyhow, the self-contained blockchain solution to the double-spending problem can be specialized to be a platform for other services. Blockchain can work as the platform that which can open protocols for the same functions that Google, Amazon, Facebook, and Uber satisfy now. The idea of neutralizing those who manage the network and integrity of the information can be increased to web search and online identity. Ethereum is testing with these kinds of open-source solutions. Filecoin, which is an application that runs on the Ethereal blockchain and compensates users who lend out spare hard drive space with Filecoin cryptocurrency, is just one example of the versatility of the blockchain architecture.
The beauty in blockchain is its capacity of democratizing protocols those were previously demanded and monopolized by privately-held firms. Through blockchain, users will no longer have to depend on Facebook to maintain their online identity in private data centers, because the profile data can be stored in the blockchain and distributed to all participating computers. The same similarity follows for just about every valuable digital service you can think about. We are on the edge of a new internet (and perhaps world) order. The blockchain is possibly the most significant advancement toward a real sharing economy in the past fifty years, and we are now beginning to discover the extent of its uses.