Truth be told, real estate transactions are usually conducted offline involving face-to-face engagements with various entities. Blockchain, however, opened up ways to change this. Assets like real estate can be now tokenized and be traded like cryptocurrencies like Bitcoin and Etherum since the introduction of Smart Contracts.

There are some benefits to this, and let’s look at four of them:

1.Excluding the intermediaries

Cutting out the intermediaries will result in buyers and sellers getting more out of their money as they save on commissions and fees charged by these intermediaries and these processes are made in a shorter amount of time.
Brokers, lawyers, and banks are usually known to be part of the real estate environment.

2. Fractional Ownership and easier entrace for real new real estate investors

Blockchain manages to lower the barriers to real estate investing by allowing fractional ownership to individual owners and also help them avoid managing the properties themselves such as maintenance and leasing. Also, dividends can be given way easily.

Real estate investsments usually require significant money shown upfront right ahead in order to aquire an asset. When there’s the case, investors can also put their money in one place and accquire more valuable assets.

3. Decentralization and transparency

Blockchain commands trust and security as a decentralized technology. Information stored in the blockchain is accessible to all peers on the network, making data transparent and immutable. One only has to go back to the housing bubble crash in 2008 to see how greed and the lack of transparency in the part of institutions can have catastrophic consequences. A decentralized exchange has trust built into the system. Since information can be verifiable to peers, buyers and sellers can have more confidence in conducting transactions. Fraud attempts would also be lessened. Smart contracts are increasingly becoming admissible records with Vermont and Arizona (USA) passing such legislation. As such, smart contracts would have more enforceability beyond the technology itself.

Here we have a video on a building from Manhattan that has been sliced into digital shares: