Blockchain in the Real Estate Market
Should it be implemented?
The truth is that Blockchain technology does offer great benefits in the real estate industry such as security, efficiency and transparency in transactions. But, before introducing this technology to the Colombian reality, let’s make a summary of what the Blockchain system really is and how it could work in the real estate sector.
About Blockchain
Let’s make this easy to understand. Imagine a public book that has been distributed and no one can exercise any power over it. That is what Blockchain is, a publicly distributed and decentralized system in which you find countless information by blocks, which are stored in a public database (Investopedia).
You create your transaction and it is grouped into a block of information, in which thousands of other transactions from other users are stored. In less than one (1) second, the details of your transaction are verified. After verification, the transaction is stored in the block with a unique verification code.
Benefits of implementing this system: 1) Improved accuracy by eliminating human involvement in verification; 2) cost reductions by eliminating third party verification; 3) decentralization makes it more difficult to manipulate; 4) transactions are secure, private and efficient, and 5) processes are developed with transparent technology.
Applied in the real estate industry
After knowing what Blockchain is and its benefits, let's talk about how it could be applied within the real estate configuration. This innovative system facilitates the transactional and documentary processes that are normally carried out in the sale of a property. With Blockchain you can acquire real estate from and anywhere on the globe, without the money having to go through any entity of the traditional banking system. In addition, you can save yourself the wear and tear of contractual processes, since the blockchain is where smart contracts originate, which retain the legal validity of a sales contract.
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