Blockchain has empowered the commercial real estate ecosystem with transparent transactions. How does blockchain wipe out traditional burdens?
With the rise of industries, franchises, and the emergence of technologies, real estate, like all industries, has undergone critical changes. However, the real estate business seems rather slow to keep up with the general speed of IT development. Due to the high-value physical property and sophisticated process of each transaction, the transformation of real estate faces more hassles.
There are four main classes of commercial real estate including office space, industrial, multi-family rentals, and retail. Commercial real estate (CRE) is a property that is used only for business purposes or to offer a workspace. Commercial real estate is frequently leased to tenants for the purpose of implementing income-generating functions. This category of real estate ranges from a single storefront to a massive shopping mall.
So how does blockchain wipe out the burdens of traditional trading to open up a new empire of commercial real estate?
The huge hindrance on traditional real estate in business
From listing a property to closing the deal, there are too many intermediates such as multiple stakeholders, service providers, regulators, and government agencies. Moreover, troublesome issues arising from the paper document, redundancies, waste delays, expenses extend the time of the deal. Both buyers and sellers are so annoyed with such aforesaid sophisticated difficulties.
Data accessibility, listing exposure, transaction delay are three main obstacles that any real estate professional has to confront. Until we alter the approach of related parties to real estate data, these problems will persist and slow down the development of this industry. By establishing a data platform that is universally accessible and usable, commercial real estate is revamped rapidly.
Blockchain as an innovative technology jump for commercial real estate
Referred to be a shared and distributed digital platform, blockchain enables an active real estate marketplace with no intermediates. Commercial real estate is tokenized and smoothly transacted with transparency and immutability of the information in a decentralized platform. Another dominant point of blockchain technology in commercial real estate is that fractional ownership boosts the investment rates, dealing with the hassles of property management
The route to the empire of commercial real estate ecosystem
Blockchain enables open communication channels between recent real estate developers. The interactions of these channels build a publicly owned ecosystem with comprehensive support. Commercial real estate simplifies the paper procedure that used to take a lot of time to deal with. Each transaction is implemented quickly with a high rate of information accuracy and trust.
It seems too vigorous to grow up a global commercial real estate ecosystem where all the buyers and sellers benefit from the smooth transactions, cut-down incentives, fees. All the commercial real estate are tokenized like cryptocurrencies that boost the exchange rate and investment rate in the real estate industry. If an Asian broker wants to hire a property in New York, he needn’t contact many real estate agencies and confront inaccurate information.
One breakthrough of this commercial real estate ecosystem is transferring the control of the data into the individuals and corporations that generate it. Hence, the whole of ecosystems doesn’t belong to a single entity but a community themselves. Each property in the ecosystem has a unique verification that remains permanent in the ecosystem.
Scaling, privacy, identification, legislation, and cross-chain interoperability are all obstacles that the commercial real estate ecosystem must solve to leverage all the benefits. The new concepts like tokenization, virtual wallets, user experience has been also one of the most difficult challenges we’ve faced. However, it is undeniable that blockchain may open up a new empire of comprehensive commercial real estate ecosystems.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since its establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/
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