Blockchain for real estate: liquidity and transparency

In the foreseeable future, with mass adoption and implementation of the new technologies, using the open registries based on the blockchain, sellers, and buyers of the real estate property will have configurable access to the complete chain of documents on the transaction and will be able to verify the accuracy and authenticity of each record. Thus, the blockchain technologies will increase the transparency of transactions, and because of this, real estate will become globally more attractive for investment. Increasing transparency and liquidity will eventually lead to an even higher capital inflow.

These factors stimulate the development of collective investment. Smart contracts give virtually unlimited possibilities for structuring rights to objects and investment projects, and this will help to design various formats of crowdfunding. Besides, the active development of collective cross-border investments will be facilitated by voting mechanisms that use identification through blockchain, a reduction in the cost of structuring and the transaction of capital, and the absence of government restrictions on the withdrawal of funds.

There are already project that are launched successfully – such as iNation and the International Association of Bitcoin-real estate, created a distributed register of owners and services for conducting transactions with real estate ABN Amro and IBM. At the moment, projects for the implementation of blockchain in the area of ​​accounting for real estate rights have already been launched in the UAE, Sweden, Ukraine, Greece.

According to the well-known consulting company Accenture, in 2018-2024 the blockchain implementation will spread to many different types of assets, and by 2025 it may become a mass phenomenon and an integral part of the world capital.

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