The convergence of blockchain technology and real estate is reshaping how properties are bought, sold, and managed. Traditionally, real estate transactions are lengthy, paperwork-intensive, and costly, involving multiple intermediaries like brokers, escrow agents, title companies, and banks. Blockchain offers a way to streamline and secure these transactions, while Non-Fungible Tokens (NFTs) introduce a novel method of representing property ownership. This article delves into the evolving role of blockchain and NFTs in real estate, the legal and regulatory framework, potential use cases, benefits, challenges, and what the future holds.
What Is Blockchain and How Does It Apply to Real Estate?
Blockchain is a decentralized digital ledger that records transactions across a network of computers in a tamper-proof and transparent manner. So, each “block” contains a time-stamped batch of transactions, cryptographically linked to the previous one, forming a “chain.”