Blockchain in Real Estate: You Can Now Buy Fraction of House
Ethereum Blockchain technology continues to disrupt and evolve the traditional models of business and investment with Real Estate industry being one of the main targets. Real estate investment is no joke, the investment process, funding and contracts can take up to months to get finalized and be in effect. The idea of investing in real estate usually involves producing huge amounts of money to buy a property in your area with the hopes that it will earn profits.
Real estate investors, tech people and everyone in the industry, however, see this model being disrupted and quickly replaced by Ethereum Blockchain technology. Through crowdfunding and smart contracts, software developers of blockchain believe that the inefficacy and rigidity of the traditional methods of investment in this industry can be evolved into something better.
Why is the traditional method of investment not favorable?
Investment in real estate comes with a lot of hopes and promises. Anyone investing in a real estate property expects the rents to be consistently leading to a reliable stream of revenue generation and return however breaking into the real estate industry is not an easy task. Although crowdfunding has simplified many aspects of a traditional real estate investment but the process has its own flaws and loopholes.
Crowdfunding basically means coming together of multiple investing parties over an agreement that not only involves paperwork but trust as well to work together for a mutually benefiting outcome and the entire process is usually regulated by a third-party to maintain equity. These third parties involved in real estate investments and agreements to ensure no party breaches any clause, proper dividends are received on time and the benefits of the investment are fairly and equally distributed among all the investors.
Blockchain Technology Revolutionizing The Real Estate Industry
Etherty’s use of blockchain technology in the real estate industry, Ethereum smart contracts, can remove all these issues involved with investing in the real estate industry and open up a whole new world of investment and opportunities. Instead of money, Tokens will be the new currency to invest in properties through crowdfunding.
The biggest advantage of Ethereum blockchain technology in real estate industry is the elimination of all the third parties and middlemen involved between investors, and with them their fee and any problems associated with their involvement, smart contracts do that work instead. Etherty proposes that with the rental dividends, agreements between investors and other intricate aspects of property investing and dealing will be executed fairly and transparently.