How can blockchain technology transform the mortgage industry?
Blockchain Technology
Blockchain is causing a stir in all industries, with each passing day there is much talk about its potential and applications; However, when we go beyond the marketing, the fashion, the buzz and the impression that Blockchainx is causing, this technology goes beyond a word. What is certain is that it is already echoing in the ears of all people, from young entrepreneurs to businessmen.
Blockchain technology promises to be without a doubt one of the most important milestones and factors in terms of this great technological disruption, which is framed and lived within the fourth industrial revolution.
Being a great promise and trend of becoming the main highway of the digital world, being the technology that brings together, until now, all the components in terms of security, innovation, development, augmented and virtual reality, cloud computing and artificial intelligence, among others, without a doubt Blockchain has the power to forever change our relationship and information.
It is important to keep in mind that because it is a new technology, although it has been around for a little over 10 years, many still relate, confuse or associate Blockchain technology with cryptocurrencies, especially with bitcoin, and well, it is not like that.
Cryptocurrencies like bitcoin are nothing more than a use case that showed us the great potential of this technology; Blockchains that new digital and technological gold that is here to stay. On the other hand, there are still many who do not know what it is, others think they know and some wonder what it really is. Therefore, below we will describe what Blockchain is in the correct way, with adequate definitions and examples of its application in fields such as the real estate world.
But what is Blockchain?
Let’s make a brief recount of what Blockchain is and how this unprecedented technological disruption was born. We can only say that it is a technology that is here to stay and even more so to define what the world of the future will be like.
Blockchain or Chain of Blocks, is a technology that its first concept was born and dates back to the early 90s under a concept that consisted of working. Later Satoshi Nakamoto was the one who conceptualized the first blockchain in 2008; from where then the technology has been evolving, allowing the development of many applications and solutions far beyond the concept of cryptocurrencies. Nakamoto provided the key details of how this technology was adequately equipped to improve digital trust, grounding and simplifying the concept of blockchain in an aspect of decentralization, which meant that nobody would have control of anything,
It is, it is protected through cryptography and organized in transactional blocks of information related to each other mathematically. In a shorter and more concise jargon, Blockchain is an immutable database that cannot be altered since, being shared, it works like a book to keep track of operations.
The power of Blockchain in the Real Estate sector
”Buying a house or apartment, or even renting a commercial asset can be complex. In the real estate industry, these transactions can be slow, time-consuming, and many parties (the land registry, the buyer, the seller, and the financial institutions that provide the mortgages) are waiting. of determining what should be done and how to advance to the next phase,” says Andrés Leal, Executive Director of Colombia Proptech.
Imagine for a moment digitizing a new real estate development in parts or tokenizing, where a number of investors from anywhere in the world can own as much of a fraction of the project as they or you want, bypassing the bank. No wonder Fluidity, a Proptech company in New York, is already working with a real estate developer and a Blockchain team to Token Swap Platform Development the first housing project in Mahanthan. This is where the Smart Contracts or (Smart Contracts) come in, based on ‘Blockchain’ technology that will allow agility, transparency, traceability, efficiency and effectiveness of the information within the value chain of the financing of the real estate activity.
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