Blockchain for Real Estate

As new uses for blockchain technology unfold, more and more investors are beginning to realize its potential for more than purely financial transactions. Originally designed to support digital currencies (like Bitcoin), people are already using blockchains to exchange other commodities – such as excess energy – and real estate is a logical “next frontier” for this rapidly growing network.

The world’s first property to be acquired using a blockchain is a flat in Kiev, Ukraine, which sold for $60,000 to a buyer who never set foot in the country. A blockchain-powered platform has many benefits when it comes to expediting such transactions. By streamlining functions like listing, payment and legal documentation, many of the fees charged by intermediaries (brokers, lawyers and bankers) will be reduced or eliminated, so buyers and sellers will get more for their money. Simplifying the process and reducing the time to complete a transaction will also increase liquidity. The very nature of blockchains also enables fractional ownership, with the ability for investors to buy and sell tokens as they wish.

Perhaps the biggest challenge will be getting governments to embrace this new paradigm of property ownership, since registering of deeds is still controlled by government authorities. This will require changes to legislation on state, local and national levels, which will undoubtedly take time; however, companies are already involved in negotiations with government agencies to address these issues.