Property technology, better known as PropTech, is revolutionizing the Fintech and real estate industries. With the help of Blockchain technology, PropTech has become one of the leading Fintech sectors and a digital facilitator for all real estate needs. Blockchain technology can be used whenever there is a transaction or exchange of information and/or goods. This is at the core of what Fintech companies do.
More and more apartment buildings are utilizing an app for residents to submit maintenance requests, pay their rent online, etc. Due to the COVID-19 pandemic, many real estate listing sites have authorized virtual tours and more digital capabilities to cut out in-person paperwork. PropTech will only continue to flourish with continued advancements in Blockchain technology. Let’s learn more about this dynamic relationship.
THE POWER OF BLOCKCHAIN
Blockchain is a way to digitally record transactions without the risk of being manipulated or altered. The lure of Blockchain technology stems from the fact that it is “decentralized”. This means it is not controlled by a single entity…. NO Government, NO Banks, NO Big Tech. This is achieved through a Peer-to-Peer Network Consensus, you can think of it as a publicly distributed ledger. Once a transaction occurs it is permanently and digitally inscribed on the Blockchain for all to see.
TOP 3 WAYS BLOCKCHAIN IS POWERING PROPTECH
1. PROPERTY LISTING SERVICES
The most common application of Blockchain in PropTech is through property listing sites. When property listings are stored on a Blockchain network as a single, decentralized, and encrypted database, it becomes more difficult for the information to be altered by an outside party. This eliminates the opportunities for third- party property listing apps and websites to inflate pricing or list fraudulent information. When these digital identities are created for a property, lease information management is improved, and the process of viewing and purchasing properties becomes more streamlined. At the end of the day, the potential buyer can be put at ease with a more secure transaction.
2. SMART CONTRACTS
Smart contracts outline terms and agreements between the buyer and seller that are written out in code. Once it is created and stored, it can be used securely and replicates itself across the Blockchain network. These encrypted records save time and eliminate the opportunities for human error as opposed to the manual contract process.
For the younger Millennials and Gen-Z generations, purchasing a home feels like such a pain. A process that can take months to complete, can now be done in potentially days or weeks. This is just one example of how this technology can be used to reshape an entire industry and ultimately open the door to those who may have been put off by how the system is currently constructed.
3. PROPERTY INVESTING
Blockchain technology has made it possible to invest in property in a decentralized way - through tokenization. Enter Propy Inc. On Thursday, February 10th 2022, a house in Gulfport, FL became the first home sold as an NFT (or Non-Fungible Token) in the United States. The home was sold for 202.50 Ethereum ($651,229 USD). Since the transaction was completed using the crypto currency Ethereum, Blockchain technology was used as well.
This is a potentially “game-changing” accomplishment by the Silicon Valley based company. With the way that society is becoming increasingly more digital, this could really lay the groundwork for how to make the home-buying process significantly less troublesome.
THE FUTURE OF proptech
Now is the time for real estate companies to stay ahead of their competitors and invest in top Fintech talent. The digital landscape is rapidly changing and has disrupted the real estate industry with PropTech. Experience with Blockchain is a necessity in this field to create a more efficient and streamlined process within property management and transactions between tenants and landlords. Safety and reliability is unmatched within PropTech’s secure Blockchain networks, ensuring customers that your company is the best choice for dependability.
When you take a step back and look at Blockchain as a tool, you can see how many applications it really has to everyday life. Like any new avenue of innovation, how we use this relatively new technology will continue to evolve. As of right now… I am excited to see how else Blockchain will continue to reshape and mold everyday life in the near and long-term future.
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