The future of real estate transactions is going towards a very promising future with more vendors moving towards a digital future. The rapid pace of this changing world and the speed at which digital assets are developed and adopted has skyrocketed due to the pandemic.
There are certain cities that are reeling toward the idea of a completely digital real estate transaction. The city of Miami in the United States allowed the idea of payment via a cryptocurrency known as the Miami coin. The success of this move has sparked interest in the general public and also opened doors for further potential transactions like taxes.. Graana.com, Pakistan’s Smartest Property Portal, is here to explore this topic in detail.
The best part about digital transactions is the visibility aspect of it where every transaction is publicly verifiable on the blockchain. There is a lack of involvement of any third party bank. This makes it easier for all parties concerned to verify the transaction without any issues. This decentralization really helps with the individuality of the user.
Real Estate Smart Contracts
Real Estate relies on word of mouth and contracts that take place very routinely. The paperwork for the property is extensive. Smart contracts, as the name suggests, are contracts whose reliability can be traced publicly and require significantly less paperwork. The speed of these contracts also means that huge amounts of time can be saved when working with these smart contracts.
Smart contracts are immutable and do not allow for any sort of modification while also cryptographically protecting the information enlisted within the contract. Smart contracts also guarantee compliance since when a smart contract is coded it is usually bulletproof in terms of how it is meant to be operated.
Real Estate Buying
Real estate buying through cryptocurrencies is still in its infancy. However, it is a concept that has very immense potential to change the industry for the better. This will allow millennials with lower amounts of money to pool resources when buying real estate. This allows them to effectively manage their resources using cryptocurrencies and blockchain smart contracts.
The use of tokens to buy shares of properties instead of outright buying entire properties help increase sales for the realtor and helps create an economic activity for people with lower resources looking for real estate.
Objectives of Blockchain Transactions
The real estate sector has a lot of redundant steps and repeatable processes that are mundane. Blockchain can help automate transactions according to a set contract. If every time a broker needs to be paid the transaction will be automated every time a property is sold. The processes of deeds and other such legalities require lots of paperwork and verification. This data can readily help cut down the actual amount of time it takes from start to finish.
The presence of blockchain can unlock boundaries in real estate and help truly globalize the real estate sectors which can have a tremendous effect on the global economy. This fact has helped to raise a lot of attention for this field and the investment in this space has been continuously multiplying due to this profound interest.
The Pros and Cons of Cryptocurrency Transactions
Cryptocurrencies have managed to infiltrate our daily lives and the social culture as widely as the internet with awareness and adoption increasing steadily. As there is two sides to every coin, using these cryptocurrencies have their pros and cons.
There is usually no definite answer when it comes to this debate. Highlighted below is a list of pros and cons to help you decide if this is something that you should focus your energy on either as a buyer or a business.
- Efficient Transactions as cryptocurrencies take a lot less time to process
- There is increased privacy when it comes to how transactions are recorded.
- Global Markets are accessible
- Avoiding unnecessary taxes
- Increased Liquidity
- Volatility is a big concern when dealing with cryptocurrencies
- New regulations can have an impact that can catch you by surprise
- The tangibility of Collateral is a concern
- Inexperience in this relatively new field can be problematic
Current Problems with Adoption
Real estate is a business that usually is repellant to changes. It is among the last industries to adapt to change. The Transparency aspect is at the heart of the reasons why reform is needed in the real estate sector. Blockchain can help with the transparency aspects of the real estate sector. It is however not something that solves all problems. The Blockchain is a tool and it does not solve problems on its own. It is the clever use of the tool that can help solve complex problems with the current transactional landscape of the real estate sector
Cryptocurrencies have their volatility issues that have caused investors to back out. This causes problems but like all problems, they are solved quickly by innovative inventors. Stable cryptocurrencies were born and now are used by financial experts.
The digital revolution of cryptocurrencies is something that has been talked about and written about a lot. It seems overwhelming but there is absolutely no denying the huge potential that it has for investors and other opportunists alike. It is like the early days of the internet where not all projects were great but the ones with real-world applications were very successful. For more insightful blogs please visit Graana.com, Pakistan’s Smartest Property Portal.
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