{"id":3720,"date":"2024-02-01T11:16:43","date_gmt":"2024-02-01T16:16:43","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=3720"},"modified":"2024-04-25T23:17:00","modified_gmt":"2024-04-26T03:17:00","slug":"blockchain-for-real-estate-its-coming","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/blockchain-for-real-estate-its-coming\/","title":{"rendered":"Blockchain for Real Estate: It\u2019s Coming."},"content":{"rendered":"\n
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If you\u2019ve ever bought a house, condo, or co-op, you\u2019ll know it\u2019s a major process. Many joyful buys took a good deal of trudging through weeks of stressful communication challenges. The journey was loaded with people, paperwork, and fees. Why do we put ourselves through it? Because getting into the market is a key wealth-building<\/a> method.<\/p>\n\n\n\n

But could there be a better way?<\/p>\n\n\n\n

Tokenization<\/em> seems ready-made to simplify real estate deals.<\/em> To say an asset is tokenized means it\u2019s represented by a token on a blockchain.<\/p>\n\n\n\n\n\n\n\n

Just Hype? Take Another Look.<\/h2>\n\n\n\n

Except for some small, pilot-style projects, you might argue, blockchain for real estate doesn\u2019t amount to much so far. And that\u2019s true. Developers, agencies, and the financial world all need to be on board if tokenization of real estate will go mainstream.<\/p>\n\n\n\n

But saying \u201cit can\u2019t be done\u201d doesn\u2019t seem to be interrupting the people doing it.<\/p>\n\n\n\n

A well-established project named Chainlink<\/em> aims to jumpstart tokenization. The Chainlink network, built on the Ethereum blockchain, can place tamper-proof data onto smart contracts. Now, it\u2019s working on linking up real-world assets \u2014 homes included.<\/p>\n\n\n\n

The hoped-for payoff? An efficient, safe, and transparent method for real estate deals.<\/p>\n\n\n\n

Still skeptical? Consider that even SWIFT<\/a>, the international banking system\u2019s very old<\/em> transfer system, is going on blockchain\u2026 with Chainlink. Collaborators include BNY Mellon, Citi, and Lloyds.<\/p>\n\n\n\n

\u201cZero-Knowledge Proofs\u201d Can Ruin a Fraudster\u2019s Day.<\/h2>\n\n\n\n

Blockchain\u2019s inherent security features make tokenization an especially compelling idea. Tokenization of a property could avert deed fraud<\/a>.<\/p>\n\n\n\n

That\u2019s because smart contracts will only accept and execute approved transactions between verified sellers and buyers, mortgage lenders, escrow companies, and so forth. Smart contracts rely on verifiable data so people aren\u2019t taken in by fraudsters.<\/p>\n\n\n\n

Chainlink uses zero-knowledge proofs to verify real property details, too.<\/p>\n\n\n\n

Why call them zero-knowledge? <\/em>Because these proofs enable verification without compromising people\u2019s financial histories and identities.<\/p>\n\n\n\n

Non-Fungible Tokens: Destined for a Key Role.<\/h2>\n\n\n\n

Non-fungible tokens, or NFTs, are tokens that aren\u2019t fungible \u2014 meaning they aren\u2019t used as shares to be traded. Instead, they stand for particular homes. Using the NFT market, people may buy homes without long waits heading into closing.<\/p>\n\n\n\n

Key title information is etched into the NFT. Chainlink includes self-updating features. This means an NFT will always hold valid details about:<\/p>\n\n\n\n