If you’ve been on the internet for the past few years, (who hasn’t?!), then you may have come across blockchain. Its global reach has sparked a new way to conduct businesses, and now it’s kind of hard to find an industry that hasn’t been touched by the wonders of blockchain – and the real estate industry is no exception.
Just like the internet or your air conditioner, you don’t really need to know how blockchain operates for you to use it. But since blockchain is taking the world by storm, you might as well know a thing or two about it.
Think about a file or spreadsheet that has been replicated a lot of times and scattered across a chain of computers (nodes). This chain of computers is constantly updating the spreadsheet where anyone who can access the spreadsheet is able to see the updates made.
This, my friend, is the concept of the blockchain.
It’s basically a piece of information that’s located in a blockchain that exists in a shared and constantly updated database. Even though the records in the blockchain are public and valid, the database is not stored in 1 location only…
There isn’t any centralized information that a hacker can easily access. Instead, it’s hosted by thousands and thousands of computers all at the same time and anyone on the internet can access the data.
To give you a more concrete example, think about the time when you sent a Word Doc to someone, asking them to edit it. Normally, you’d have to wait until the other party is finished for you to be able to see the revisions made. You can’t access it while they’re working on it, and this is how most databases work today.
On the other hand, you can compare blockchain to Google Docs. Unlike Word, both parties can simultaneously access and edit the file. They are able to see the changes made in real time.
In the past, transactions involving high-value assets, such as real estate, have never been digitalized. These type of transactions commonly take place offline – face-to-face interactions along with the involvement of various middlemen.
But, blockchain challenges the norm and provides ways to conduct high-value transactions online without the risk of hacking or corruption. Blockchain platforms introduced smart contracts that allow assets, including real estate, to be traded like cryptocurrencies such as bitcoin and ether.
Changing Real Estate Industry for the Better
Most of the real estate software available in the market is about generating leads, listing properties, bridging the gap between buyers and sellers, and the like.
But with the rise of the blockchain, technology platforms and online marketplaces are able to improve the way they help real estate professionals. Here are some of the ways blockchain is changing the game…
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No need for intermediaries. While it’s true that lawyers, agents, and banks play a huge role in the circle of real estate, blockchain may soon alter their roles in the industry. Basic functions such as listings, legal documentation and payment may soon be replaced with technology. Without intermediaries, real estate investors are able to take more of what they earned since they can save on fees and commissions. Plus, it makes buying and selling properties a whole lot easier.
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Decentralization. Blockchain isn’t operated in a centralized technology, so trust and security are ever-present. The information inside the blockchain can be readily accessed by the public, so you can be assured that the data is transparent and secured.
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Costs. The transparency brought about by blockchain is able to minimize the cost of real estate transactions. Other than the costs of commissions and fees of intermediaries, real estate investors also pay for loan fees, real estate taxes, inspection costs, registration fees, and more. As with intermediaries, these costs can be taken out of the transactions process by automating them.
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Supports Peer-to-Peer. It’s estimated that the global worth of real estate is around a whopping $217 trillion. But, it is run by the big companies and the filthy rich. Through blockchain, people like you and me will be able to access the market since transactions are now secure, transparent, and unbiased.
Where Blockchain Meets Real Estate
Ubitquity is one of the real estate platforms that has embraced the wonders of blockchain.
The software is a platform that is secured by blockhain solely for the purpose of real estate recordkeeping. Ubitquity offers their clients a user-friendly interface that allows them to securely track and record deeds. They are in partnership with municipalities, companies and academia. And they just recently launched their private alpha version of the platform.
The whole idea about Ubitquity is that they want to help their clients make future title searches faster and more efficient with blockchain. Not only that, they provide a security ledger where you can transparently track and record titles and properties.
Ubitquity is made specifically for these clients:
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E-Recording
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Municipalities
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Title
They made it a point to create an easy-to-use platform so clients can log information on a certain property, as well as record and upload documents into the blockchain.
Here are some of the other features Ubitquity offers:
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Bitcoin. Among other cryptocurrencies, Bitcoin Blockchain is the strongest, most reliable peer-to-peer (P2P) public ledger. The data is verifiable and they also support Hyperledger, MutliChain Blockchins and Ethereum.
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Increased Transparency. Since you’re dealing with millions worth of assets, transparency is needed in real estate for professional relationships to work. Ubitquity promises a whole new level of transparency in terms of records and the like.
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Peer-to-Peer Storage. Ubitquity enables you to use their platform for document hashing, as well as P2P seeding technology for encrypted and decentralized data.
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Ubiquity’s Technology. Rest assured that all your transactions are stored publicly in Bitcoin Blockchain, ensuring security and reliability.
Even though blockchain is relatively new, the security, convenience and other benefits it provides is a strong indication that it won’t go away any time soon. This technology may be a huge boon for real estate investors in the future.
Do You Ubiquity?
We’re really interested in hearing about your experience with this newer technology – share below.
Learn more about blockchain. Blockchain is a complex system. Even though bitcoin and cryptocurrencies are a big hit in the market, keep in mind that this software is still in the initial stages of advancement. It’s best to talk to a professional or someone with experience.
Take advantage of blockchain. Blockchain has been dubbed the ‘future of technology and banking.’ So, it makes sense to grab a hold of it now before you miss out on a lot of benefits.
Be transparent with your transactions. Transparency is one of the keys to real estate success. With a high-value transaction, it’s important to be open, hones and communicative at all times. It also reduces your potential liability.
JP Moses
is a real estate investor in Memphis, TN, with experience ranging from land lording to note buying, rehabbing, and wholesaling. However, wholesaling is the area that he enjoys most and where he bring the most experience and expertise to his students.