The arrival of cryptocurrency in real estate has completely revolutionised the industry over the past few years. Automated rapid transactions, the creation of smart contracts, and safety in dealings are some of the benefits that cryptocurrency provides. Traditional real estate dealings are less desired because of the high risk of fraud and fake dealings.
The process of buying a property with cryptocurrency is more convenient and profitable. Emerging as a full-fledged model of payments, cryptocurrency is changing many businesses. However, understanding crypto and its role in the real estate sector is not as easy as it is thought to be.
What Is Cryptocurrency?
It is a virtual or digital currency asset built on a blockchain that does not exist in physical form. In blockchain technology, a ledger system retains the entire transaction history and makes end-to-end payments secure and safe. It uses cryptography to secure payment transactions, history of payments, and release new units.
Decentralised system without any regulatory body is the basis for cryptocurrencies. A distributed ledger system makes sure that payments are secure between the seller and buyer. Currently, cryptocurrency is making huge success in various marketplaces around the world with a strong potential for growth in the future.
Cryptocurrency in Real Estate Business
Cryptocurrency is a name for digital money that operates in various forms. These forms differ in their market value and their mode of operation for various kinds of payments. Apart from some major cryptocurrency forms, real estate transactions are made through special cryptocurrency units.
Normally, Bitcoins, Ethereum, and BNB are used as major cryptocurrency forms in digital transactions. However, in the global real estate business, Propy, LAToken, and Contracoin are currently emerging as major cryptocurrency forms.
Due to legislation issues in several developing countries around the world, cryptocurrency operates underground. On the other hand, developed countries have started taking cryptocurrency as a normal mode of payment. Working closely with the governments, cryptocurrency has even become an international model of payment in a few countries.
Blockchain-integrated real estate can be thought of as the best replacement for fake and fraud dealings in traditional real estate. Cryptocurrency has numerous advantages but, due to lack of information and awareness, many people have not utilised it yet. You can check the following advantages of cryptocurrency for a better understanding.
- New Pathways for Property Dealings
- Automated Transactions
- Smart Contracts Creation
- Fast Property Dealings
- Safe and Secure End-to-End Payment
New Pathways for Property Dealings
Traditional property dealings involved lengthy registration and verification procedures, involvement of third parties, difficult property transfer, and many other problems. With the arrival of cryptocurrency, these problems have been simplified as it provides a streamlined platform for every type of dealing.
Tokenization is the major benefit associated with cryptocurrency dealings. Tokenized properties can be exchanged for a normal fiat currency, and partnerships are made easier. Moreover, cryptocurrency does not leave any margins for fraud and scams in dealings as a cryptographic unit keeps the details of contract secure between the two parties.
Some major drawbacks of traditional real estate dealings are slow payments and lengthy transaction procedures. It involves several bank visits, contract signings, property verifications, transaction approvals, and many more. With cryptocurrency comes automated transactions.
The speed of transactions and the signing of initial agreements are performed with automated blockchain units. The risks concerning fake dealings and transactions are all removed with fully automated and integrated transactions. Moreover, the deals and transaction histories can be accessed by both parties at any time through a uniquely generated puzzle.
This process does not involve any bank, real estate agent, or third party. Transactions through cryptocurrency are desirable because there is no need to sign the cheques, wait for tax payments, or any other bank hustle.
Smart Contracts’ Creation
Blockchain technology delivers unparalleled speed and safety of dealings. Both parties receive digital or smart contracts during their property dealings. These contracts are similar to paper contracts but are digitally contained in the form of codes or crypto graphs. Crypto graphs or codes cannot be modified.
These contracts work with virtual or crypto assets. Both parties usually prefer to exchange their crypto assets. Blockchain ledgers keep all the transaction histories and accounting entries safe on the blockchain codes. The conditions mentioned in the contracts are very clear and do not leave any room for confusion.
Smart contracts make sure that property dealings are fair and clear to all parties involved in the business. They are simple programs stored on the blockchain that work when the predetermined conditions are met.
Fast Property Dealings
Traditional property dealings involve processes such as finding the right property, the right real estate agent, negotiations, token money transactions, verification of lands and authority letters, amount payment using bank pay order, getting the sales agreement, and many more. However, in cryptocurrency, we do not come across these kinds of lengthy procedures.
With simple code or cryptograph generation, smart contracts, and automated transactions, blockchain breaks down all steps into simpler ones. Cryptograph puzzles secure deals in blockchain codes. Even the transactions happen with simple clicks. Moreover, access to property history and transaction history at any given time is easy.
Therefore, the dealings of property selling and buying are simple and fast with blockchain technology. Without any fear of scams or fraud dealings, parties can buy or sell their properties securely.
Safe and Secure End-to-End Payment
In blockchain payments, only two parties – the seller and buyer – are involved. No third party is given any kind of access to data related to the dealings between two parties. A decentralised system allows parties to make dealings secure and safe.
Moreover, in traditional property dealings, there is always a fear of scams or fraud due to the involvement of real estate agents. Fake cheques and bank transactions are common in the real estate business.
Blockchain technology and cryptocurrency, no doubt, come with their own set of risks and negative points. But, due to the potential prospects that they have in different marketplaces, prediction shows that cryptocurrencies will soon replace physical currencies.
For more information on how technology is changing the real estate sector, visit Graana.com