On your daily life, you might have come across several terms such as cryptocurrency, bitcoin and also Blockchain being used in an increasing trend in business over the last ten years. Did you happen to learn what they are? Do you have an idea what Blockchain is and how it has positively impacted the global economy? Well, don’t worry as I am going to take you through what is Blockchain.
The Blockchain is a global digital ledger technology which records all transactions without the use of a bank or any financial institution. When you purchase, sell or transfer cryptocurrency or even use coins to buy goods and services, a new record is created on the Blockchain. Consider this new record a “Block” in a “Chain” of transactions, creating a chronological history in an online ledger, which creates transparency and the ability to follow the chain.
These “Blocks” are secure as no unauthorized personnel can alter the information in them, as the Blockchain network verifies each “Block” on its Peer network.
Why is Blockchain Important?
With the Blockchain, you can transfer money digitally without the need of a financial institution, where you would be charged a transaction fee and verification may take three to five days. With the Blockchain, there are no middlemen; hence the transaction will be faster and cheaper. All the transactions made are permanently recorded in the database, and no one can alter the information. It has increased transparency of data and also the accuracy.
With Real Estate, this would have the buyer and seller to transact quickly and at a lower cost, so a Real Estate platform based on the Blockchain would have this and other benefits. This is the reason for the development of Contracoin, a Global Real Estate Blockchain-powered platform.
Contracoin allows Real Estate agents, brokers and property developers to gain exposure to international Real Estate investors all over the world. It also opens the world to crypto property investors by giving them access to properties internationally and allowing them to pay for these properties using the Contracoin token.
The current state of Blockchain and Real Estate in the economy
The new technology of Blockchain has now undertaken the Real Estate business. This is in line with the growth in the use of the internet around the world. It has enabled the investors in the current market to connect online with each other and make all the deals. Many countries have adopted this technology and are avoiding the use of the traditional method that was making them pay a lot of commission.
A few years ago, there was an investigation done by Sweden to see how the application of the Blockchain for Real Estate was performing. The research was aimed at modelling a property that was purchased using blockchain technology. It checked on how both parties involved transacted the business and also the progress of the deal until it was completed. They finally produced a report that indicated how the business was conducted and provided a functional technical solution.
In the UK, a commercial building was sold using blockchain technology. At that time, the US estate agent indicated that he had successfully helped four individuals purchase properties by the use of crypto-currency. In Australia, more individuals are willing to accept blockchain technology in their Real Estate business. Since the report, Real Estate and other industries using Blockchain technology have risen and been successful.
What is a Blockchain transaction made?
In the Blockchain, transactions are conducted by the use of a smart contract that has digital rules to follow. It contains the condition that is to be followed by both the buyers and sellers and also the general agreement. The Blockchain will be using agents to incorporate the rules or even the smart contract that will be responsible for doing the whole task. Blockchain technology is expected to grow as more transactions are being added to the ledger.
What made the Blockchain Real Estate companies rise?
Having a smooth and secure transaction by use of the Blockchain technology facilitated the rise and creation of many companies. The use of internet has also contributed to an increase of the Blockchain Real Estate businesses as investors are learning that they can sell or lease their properties at a less cost and in a more secure way.
Blockchain technology for Real Estates is gradually growing and providing a lot of opportunities for investors. It is expected in a few years that most landlords will have adopted this new technology and implemented it to their tenants to save on time, resources and also for the transparency in the process. Blockchain is also working on a way to improve transactions to enhance the investor’s requirements.
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