Real Estate Is An Industry Ripe For Disruption

Hello Hampton Roads,

Real Estate is an industry ripe for disruption--Innovative Disruption.  And, like all established industries it needs to be shaken up to allow for something bigger, better and more efficient to come along.  Kind of like how the old pulse based phones where all you could do was make and receive calls, gave way to the current smart phones which touch every area of our lives from keeping us connected, to shopping, recording videos, watching movies and streaming our favorite songs.

The way we buy and sell real estate will change and is already changing.  Technology exists today which is setting the stage for disintermediation--a fancy way of saying getting rid of the intermediary.

Blockchain technology will innovatively disrupt the real estate industry by making it more transparent, cost effective and efficient.

When I say blockchain tecnology, most folks think of bitcoin, but bitcoin is just the first application on the blockchain. There is  much more that can be done.

Let's start by defining blockchain.
Blockchain is a global, distributed database that isn't owned by anyone and is accessible to everyone with a smart phone (internet connection).  It allows for the transfer of digital assets peer-to-peer, without using a 3rd party or 3rd party permissions.  This creates an immutable ledger, that is open source and decentralized.

Information is permanently stored across a network of personal computers known as blocks and each block is time stamped and linked to the previous block forming a chronological chain. You can add to the chain but you can't change the information that is already there.  Records can't be altered or counterfeited by anyone else and this makes it more secure.

How does this play into the future of real estate?

Once idea is with the use of Smart Contracts.  Investorpedia defines smart contracts as follows: 
"Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network. Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism. They render transactions traceable, transparent, and irreversible."
As an example of how this would work, unique digital ids would be created for the buyer, seller and property.  These digital ids would be used to vet and verify each other's identity, qualifications (for the buyer) and ownership (for the seller). and the property id would show chain of ownership.

Both parties agree upon a price and payment is made in virtual currency. Once the buyer transfers funds to the seller, the triggers the contract to automatically send a special coin/token which signifies title to the buyer.  Transfer of ownership can occur without the need of 3rd party verification thus  making the process more cost effiective.  The transfer is fast, efficient and complete and verifiable through a publically available record on the blockchain.

Thanks for Reading,

View Liz Schuyler- CDPE, SFR, e-PRO's profile on LinkedIn

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