Cryptocurrency hails from the creation of blockchain technology, one of the trending network technologies today. Collective verified lists of data or records are blocks stored by blockchain, a public digitized ledger and has been used in all types of fields including the creation of cryptocurrency. Sectors of the economy, from the financial to real estate industries for the past several years have been invaded by both blockchain technology and cryptocurrency.
No one has the power over cryptocurrency and transaction can only be verified through a consensus among the users. This happened because blockchain technology incorporates an all-virtual, peer-to-peer connection between users that lead to consensus without the facilitation of a centralized authority. It differs from other monetary systems in the world where a central bank regulates monetary transactions in each country.
Information sharing and security of transactions are being improved because of the incorporation of blockchain systems in the real estate industry. The application of transparent information storage and system made these improvements possible. The information becomes publicly encoded in the system once a decentralized consensus is fulfilled by blockchain technology from its users.
Multiple listing services (MLS), smart identity, and smart contracts are enabled by blockchain and it allows the user to view property listings of one another which provides convenience for the parties involved. Lesses are able to check the initial transactions on his selected property through the smart information and the background of the lesses can be monitored by the lessors.
As terms of agreements become encrypted into the system, the technology will be able to allow transactions to proceed without using a third party thanks to smart contracts. There is better transparency, and efficiency through these virtual features as listings are being accessed much easier internationally while reducing operational or transactions costs.
Furthermore, cryptocurrency also has the capability to make transactions easier because it ensures that payment for estate properties are transferred on a peer-to-peer basis through cryptocurrency exchange. This offers convenience with regards to long-distance and quick payments.
Through an incentive mechanism, real estate marketplaces have already been incorporated into blockchain technology. The instant and online transactions is a result of a system that allows convenient and fast services to users using a blockchain ledger. Cryptocurrency makes payments of transactions possible. Propy is an example of an estate marketplace that innovates in such a way.
Through an incentive mechanism, blockchain technology is being incorporated to Propy’s platform, an international real estate marketplace. The listing it provides can be paid through regular cash while simultaneously incorporating blockchain technology to its systems. The system takes pride in its ability to offer convenient and fast service to users through a blockchain ledger that allows instant and online transactions. Additionally, other companies such as CPROP exists and are known for assisting estate services agents that facilitate worldwide deals through offering solutions based on service. This was made possible through blockchain technology and token systems.
With regards to how industry players should act in accordance with this trend, there are still uncertainties that exist although these features look promising to the industry. The commission for brokers can be affected because, at this time, everything can be done virtually digitally. There is a possibility that tokenized properties can suffer losses since cryptocurrencies fluctuate heavily. If the firms’ current system is abolished because the shift to a blockchain-based system, very high initial costs can be expected. Parties are going to be worrying about the system due to the complexity and lack of centralized regulation and the lack of widespread use for blockchain technology.
In the middle of all these, the Global Vice President at Renren, Matthew Murphy stated that real estate agents will have to apply cryptocurrency system in preparation for the future if they want to be ahead of the race. He said it’s best to allow cryptocurrency payment for properties or at least slowly incorporate the blockchain technology.
Because cryptocurrencies change the fundamental aspect involved in online transactions, they may represent the next stage in the Internet of Things. They will become more secure while opening them up to transparency simultaneously. In conclusion, the concept of decentralized economies that raise up direct transactions over administrative credit will more likely influence the way human beings live in the coming years.
Valderas Financial Solutions LLC