Blockchain Technology Use Cases In Real Estate
Have you ever heard of the advantages of using blockchain in the real estate industry? Or are you still thinking that traditional business cannot benefit from this technology in any way?
Indeed, during the last years, blockchain development trends have come in the real estate industry too and are on the rise for now. It’s because this technology brings with it all kinds of innovations and benefits starting from improving the safety of purchase or sale transactions, automation of property management, till implementing smarter decision making.
Hence, blockchain can transform totally the commercial real estate market making it more advanced and innovative. In this article we reveal how your business in real estate can benefit from blockchain adoption before your competitors will do that.
WHAT IS BLOCKCHAIN?
Before we proceed any further, let’s make sure that you understand precisely what we mean when we use this term.
In a nutshell, blockchain refers to an ever-growing list of records that are called blocks. Each block contains secured cryptography data that is almost impossible to change, even if you are a highly skilled hacker. Each block includes a timestamp and a wealth of transactional data and has as a part of it a cryptographic hash of the previous block in the line. So all blocks are linked together through the use of cryptography .
Blockchains are so useful because they are highly resistant to anyone tampering with the data. Because of their security possibilities, they have become a favorite for many industries, real estate is just one of those.
WHY YOU SHOULD CARE ABOUT USING BLOCKCHAIN IN REAL ESTATE
If you are still hesitating on what will be the true impact of blockchain on the real estate industry for the next few years, it’s better to look at some statistics on blockchain development for the next few years. That way, you can fully understand the capabilities of the technology.
As you can see from the chart, under the Worldwide Semiannual Blockchain Spending report , during the previous year global blockchain spending reached $1.5BN while it’s predicted to be doubled this year and reach around $2.9BN with 88.7% CAGR e.g. growth rate.
However, the forecast spending on blockchain over the next three years will increase even more and achieve $12.4BN with 76% CAGR. These numbers indicate a quite robust pace of growth for blockchain adoption globally.
By the way, a bigger number of different industries have started to apply this technology with purposes to improve the effectiveness of their services and save costs. For example, for the last years, a lot of the healthcare providers have shifted to blockchain development for healthcare as well as some other industries companies. So, let’s look at how blockchain distribution varies across specific industries:
- Banking & Insurance Industries — $1BN
- Finance Industry — over $700M
- Manufacturing & Resources industries — $653M
- Retail and Professional Services including Real Estate — $642M
Hence, the real estate is among these industries that can benefit from blockchain implementation for the sake of company growth.
