In the next few years, a new competitive approach and phenomenon is expected; the new comer, the next game changer and the next big thing to join and partner with the real estate industry is the newest phenomenon- blockchain.
We all know that the real estate industry has sustained its growth despite challenges; ups and downs and crises for the past several years. Sustaining its robustness in the market is largely driven by a macroeconomic fundamental, growing knowledge process, outsourcing industry, aggressive infrastructure, advance strategies and techniques and the modern technologies used.
Here at Camuso CPA PLLC, we provide consultations and services for better understanding and ease in doing business where virtual, digital money is involved: “cryptocurrency’ – a new business paradigm supported by blockchain technology.
Stakeholders and investors in the market find a need to have a central transaction database to level up and bring real estate transparency to a whole new level. Technical innovations and a growing availability of data will enlarge transparency and reduce information asymmetry in real estate in the upcoming years and the next potential disruptive phenomenon (blockchain) is slowly penetrating the real estate industry. Since blockchain is built on the principles drawn from cryptography and peer-to-peer network, it allows its network to have trust in a shared record of events. To know more about blockchain, you may check previous articles on this site: The Genesis of Cryptocurrency and The Rise of A new Phenomenon : ICO.
Why Blockchain is considered the next big thing?
- It can hold, track, verify and transfer any information. The copy of entire block chain is available to anyone within network and transactions are time stamped. It will now play a vital role in using this as new approach and trend in the real estate industry far from the traditional ways and practice. It doesn’t even need some middlemen of finance-banks, brokers, insurer, governments and even paper currencies. This is a unique monetary data to be exchanged via a distributed ledger that becomes available to public thus it becomes more transparent. Buyers and sellers can easily access data stored in the data base.
- Since transaction is time stamped, it can easily be tracked down. With the transparency of ownership and history involved it may reduce fraud activities in the market. Blockchain can provide an accurate record which identify the current owner and provide a proof that he is indeed the owner. This makes it easier, safer and faster to buy and sell property.
- Property transactions could be handled on a blockchain same way payments between parties are handled using digital currencies like Bitcoin. Every coin represents a unique house or piece of land and exchange is just like in any other transaction using digital currency. Using smart contracts assets exchange could follow specific instructions encoded as part of transaction to be executed automatically once agreed criteria have been met. All the computers of the participants in the network validate every transaction thus it speeds up the process of buying and selling properties.
With hall these mentioned pros of gearing towards virtual currency approach there will always be cons however while the technology offers some exciting prospects for the future, and this innovation to penetrate the said industry. There are factors that may affect this ambitious yet possible adoption of technology. This doesn’t happen overnight before it gets to the mainstream it is expected to battle hurdles along the way. The potential of exploring it and its success depends on the state of the forward -thinking individuals behind the camera making it possible to happen.
Here at Camuso CPA PLLC, we do have the ability to offer services to our clients. If you are interested to know more about how we can help you with your ICO, Bitcoin and other cryptocurrency inquiries please don’t hesitate to give one of our real estate tax professionals a call today. One of our friendly and knowledgeable representatives will be happy to answer any questions you have.