Lately technology has become more and more integrated in every aspect of our lives, it has moved out of our phones and even integrated into our homes through voice command lights and the like. So when the idea that technology, specifically blockchain technology, might become a prominent factor in commercial real estate, it should come to no surprise. We do however need to know what blockchain technology is and how it may better the commercial real estate process.
So what is blockchain technology?
Blockchain technology is a new way to record transactions that involve any form of value and secure it with cryptographic technology, ensuring it’s safety. Blockchain foresees a transfer of unique digital property, and in the context of commercial real estate, contracts would be that property.
Blockchain technology will give us an advanced leasing option as well as purchase and sale transactions in commercial real estate. These functions will be accompanied by an increased security as well as transparency through the entire purchase and sale process.
So what is the connection to commercial real estate?
Well, blockchain may not be right for everyone, it depends on your goals. Do you want more transparency, less risk, a stronger streamlined process and a unique platform for sharing? Blockchain has the opportunity to transform some core aspects of commercial real estate like property transactions, sales, financing, leasing and even management transactions.
Blockchain provides the luxury of a shared database that multiple people may modify with the correct permissions. Along with this, participants in sale transactions can sometimes become overly cautious and have data concerns involving the other participant of a transaction, but this too can be solved with blockchain technology giving transparencies in information such as real estate titles, entitlement, liens and financing and tenancy.
The need for intermediaries can actually be cut out thanks to blockchains’ increased security and transparency in title management and the ability to auto-confirm by government land registries.
There is no doubt that blockchain technology can have a beneficial impact on the commercial real estate market and possibly the other markets as well, thank’s to it’s strong security measures and transparency. Blockchain technology is definitely something to keep an eye on and consider when delving into the real estate frenzy!
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