Apart from its more popular usage as a means of payment or remittance, bitcoin technology can now be applied to home-buying. Through the use of blockchain, transactions could be subject to stricter verification but this could by-pass the usual credit reviews or submissions of paperwork for proof of income.
In addition, using digital currency with authentication, home-buying might not need the middleman to facilitate transaction. This could significantly lower additional costs incurred for commissions and transfers.
Bitcoin Technology Applications
According to an article by Fast Company, the real estate industry is one of the biggest industries that bitcoin could disrupt. Establishing a digital database similar to bitcoin technology or blockchain to prove authenticity could aid with the legitimate transfer of ownership versus the traditional route riddled with incomplete, inaccurate, and asymmetric information.
As for the home-buyer, verification of home ownership could also be conducted seamlessly with the use of bitcoin technology. Although blockchain does not provide the details of either parties involved in the transaction, houses could be assigned to digital identities that could provide the history of any changes or repairs incurred.
In case a loan needs to be secured to purchase the home, banks or creditors could be given access to the historical information of the buyer and calculations for any potential home improvements could also be easily made. With the home being part of a community, new home owners could also provide reviews for the area and add to any potential vote of confidence for future buyers.
Apart from facilitating peer-to-peer exchanges, shared ownership and coordination could also be fostered with the use of bitcoin technology on the real estate sector. For instance, sharing a space with other roommates and splitting bills for utilities and other items could be made more convenient with bitcoin transfers through an online wallet instead of physically exchanging cash.
In addition, using digital currency with authentication, home-buying might not need the middleman to facilitate transaction. This could significantly lower additional costs incurred for commissions and […]