Real estate is a large market that people expect blockchainBlockchain
A digital, distributed ledger which contains data for all the transactions that have ever taken place using a given cryptocurrency.
Bitcoin
The first blockchain-based cryptocurrency, launched in 2009. Bitcoin remains the most influential and widely recognized coin. All other cryptocurrencies are known as "altcoins," simply because they are not Bitcoin.
Real estate is a large market that people expect blockchainBlockchain
A digital, distributed ledger which contains data for all the transactions that have ever taken place using a given cryptocurrency.
Bitcoin
The first blockchain-based cryptocurrency, launched in 2009. Bitcoin remains the most influential and widely recognized coin. All other cryptocurrencies are known as "altcoins," simply because they are not Bitcoin.
Thanks to the blockchain, real estate purchases, and sales can be completed in an automated, faster fashion.
Will the Future of Real Estate be Disrupted by Cryptocurrencies?
To be overly simple - yes - there will be real estate cryptocurrencies. One example is Propy. Propy is a blockchain platform that lists real estate properties and automates the transfer of ownership. The Propy tokens, PRO, are the currency used on the Propy platform. Using PRO would be one example of buying real estate with cryptocurrency.
Now, if you think about this critically, PRO can be accepted by any vendor. It is a just a currency after all. To be more precise, it is the Propy platform and other blockchain platforms that disrupt the future of real estate, not the cryptocurrencies themselves. With blockchain, all of the operations that come with buying and selling a property can be automated. Most of this is completed with the help of smart contractsSmart Contracts
Agreements between two parties that self-execute when their terms are met and automatically cancel when their terms are not met.
Okay, so what is a smart contract?
It is smart contracts which make real estate cryptocurrency platforms functional. One of the most famous projects in the space, Ethereum, introduced the industry to smart contracts in a more mainstream fashion. Unlike BitcoinBitcoin
The first blockchain-based cryptocurrency, launched in 2009. Bitcoin remains the most influential and widely recognized coin. All other cryptocurrencies are known as "altcoins," simply because they are not Bitcoin.
dApps
Distributed Apps. Applications without centralized control.
Source: Ethos YouTube Channel
A smart contract is a layer of software that allows an application to record data and interact with a blockchain, in this case, Ethereum. At the basic level, it can automate and execute the terms to a written contract. A common and easily explained use case for smart contracts is to automate escrow functions. So, instead of trusting a third party to act as an intermediary, you can now trust unbias software. For example, you send me a TV, I send funds to a smart contract (acting as an escrow), and once I received the TV, funds are released to your walletWallet
Software or devices that contain public and private keys for storing cryptocurrencies
In brief summary, the advantages of smart contracts are:
- Automated - makes for a better user experience. Functions such as buying products or transferring legal ownership are now quicker, more trusted and automated.
- Transparent and Secure - everyone involved in a transaction can confirm payment is made, the product is delivered, and ownership is legally transferred.
- Cheap - smart contracts make many services cheaper for users on either end of a transaction.
So, it is smart contract platforms such as Ethereum that disrupt many industries from the future of real estate to law, finance, or e-commerce.
How will blockchain impact the future of real estate?
Now that we explained the fundamental advantages of a smart contract which are that it makes for automated, cheaper and more transparent services, let’s break down how each of these points affects the future of real estate.
Source: pwc.comThe Future of Real Estate is Automated
The real estate industry is full of paper pushers. This means there are several employees from various associations involved with transferring ownership whether it be land or property. All of this can be automated via smart contracts. Currently, when you purchase a property you must pay for it and have ownership of the property transferred from the previous owner to you. This involves updating bank and legal records which can be a slow process with unexpected fees from the broker.
Thanks to the blockchain, real estate purchases, and sales can be completed in an automated, faster fashion. Taking Propy as an example, the protocol will not only manage the escrow part of a deal but also mirror public records of ownership and update them accordingly. The hope is that state and federal governments will adopt Propy as the main public record for real estate related transactions. If this form of adoption happens, then you can say that Propy will be one of the best real estate cryptocurrency platforms.
The Future of Real Estate is Transparent
Always remember that the blockchain is a public, decentralized ledger. This means that thanks to platforms like Ethereum, real estate transactions will be recorded on a public ledger, in an anonymous, immutableImmutable Ledger
The term used to refer to blockchains to describe the way in which blocks cannot be changed after they are recorded.
Trustless
The ability of a system to be trusted without the need of trusting the individuals with which you are transacting.
Node
A computer that runs a cryptocurrency’s software and validates transactions.
Decentralized
Distributed amongst its users rather than controlled by one group or within one certain area.
Using a real estate cryptocurrency platform buyers and sellers can confirm funds and titles or other documents of ownership have transferred by looking on the app connected to the blockchain.
The future of real estate is only one niche that will be disrupted, there is also supply chain, e-commerce, app stores, escrow services, and banking services, that the cryptocurrency industry will impact.
The Future of Real Estate is Cheaper
Thanks primarily to automation, the future of real estate is cheaper. With fewer intermediaries involved, there are less fess and employees to pay, so transactions will be cheaper. Because of this, we expect to see more and more real estate cryptocurrency platforms come to compete.
Give me an example of the future of real estate
To visualize the future of real estate, let’s first understand some of the main parties involved in the current market. The big players are buyers, sellers, brokers, escrows, and title associations. Let’s imagine buying real estate on the Propy platform. Propy accepts Bitcoin, so in this example, we will buy real estate with Bitcoin.
Ultimately, you would send Bitcoin to smart contracts serving as the escrow service, which can confirm payments are handled properly. Once funds are verified and any payments are made, the smart contract can write new information to the blockchain. This new information can include title transfers, document updates with signatures, and the overall conformation of new legal ownership. With Propy in particular, documents can be completed and signed online. Meanwhile, the entire Propy system is integrated with the Ethereum blockchain so any updates to information are recorded in a global, trusted manner. This can be done within hours, which is hard to believe given the current slow processes in real estate. For these reasons, Propy is becoming a popular real estate cryptocurrency.
Source: sheilaaujla.comHow Can I Get Started in This?
The future of real estate is only one niche that will be disrupted, there is also supply chain, e-commerce, app stores, escrow services, and banking services, that the cryptocurrency industry will impact. Speculating on the next best real estate cryptocurrency or any other applicable use case for cryptocurrencies is exciting and rewarding.
The example of Propy is only one example of hundreds of blockchain projects. With blockchain, real estate will be completely transformed, but so will many other industries.
Knowledge of the different cryptocurrencies will help you become a better investor.
Understanding how to buy cryptocurrencies, keep them safe, and use them comfortably has a steep learning curve. The best way to get dive in is to read our guide on how to invest in Bitcoin today.
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