How Real Estate Is Being Re-Engineered by Web3

Many people in the real estate sector have long talked about the ease of buying a home with a few clicks. It didn’t seem possible in a transaction that generally involves a lot of paperwork, personnel, and legal checks.

This wave of opportunity is already in sight thanks to blockchain technology and the developing NFT (Non-Fungible Token) market. It’s like if we’re on the beach, watching the wave come in, and then we take our boards to ride it.

You see, Web3 technologies have made it possible for everyone to access the couple-click, quicker, easier, more secure transfer of real estate assets that everyone involved in the transaction – the buyer, seller, and agent – has craved for over a decade.

This fantasy has come true as a result of what transpired on Wednesday, April 13, 2022, in Tampa, Florida—the couple-click encounter.

Up until now, the art world has dominated the discussion of Web3 innovation and has viewed it as a means of establishing and protecting ownership of digital assets.

In a recent podcast, Reid Hoffman, the creator of LinkedIn and the venture capital firm Greylock, claimed that web2 was the web’s upgrade for genuine identities and relationships and that web3 is the web’s upgrade for ownership. Since “it isn’t simply digital assets that could be there if you have a cryptographically secure record,” it is evident that this is true.

Ownership is something that results from human interaction rather than being a part of objective reality. People concur that it exists, so it must exist. The social constructs of nations, money and private property are a few examples. Owning a car is merely a matter of title; it is a record in a database, making it a digital asset. As a result, blockchain might be used to manage it.

What about a property? Now that we have spent eight months and lost weeks of our lives in this process, it can’t come soon enough. As I sit in my brand-new Miami home and go through the process of buying a new house for my in-laws, I am experiencing what so many buyers are: making one blind offer after another on numerous properties.

Think about a brighter future: You locate the home you choose, connect your wallet or online banking in one location, and with a few clicks, take part in an online, open auction. If you require a loan, you apply and are immediately accepted throughout the auction process.

What transpired in Tampa, then?

The smart contract has been set up, the NFT has been created, and the sale can now begin, my team reported. Okay, let’s do it, I said.

This was the beginning of a 24-hour sale, and it was how the world would see the bids rolling in.

While on vacation in Texas at the time of the sale, the buyer who made the highest bid had been present at the open house. They acquired ownership on April 13, thanks to a Web3 settlement.

When the deal was over, the buyer called and inquired about what would happen next. I grinned when my colleagues informed me of this over Zoom. People found it difficult to accept that the buyers of the NFT transaction quickly became owners because it took place after the previous two NFT auctions. For the purpose of due diligence, they already had all the paperwork. All that remained was for the key to be delivered along with the code for the smart lock.

No fuss. Completely safe. Lightning-fast.

This property deal has now been permanently documented on a public blockchain. The NFT can also change hands while Ethereum is maintained, and this proof cannot be altered or removed. Naturally, it is possible on any decentralized blockchain.

For the first time in history, this instant settlement on a blockchain has been accomplished for a small number of assets at this moment, despite the fact that there have been over $4 billion worth of real estate transactions recorded on the blockchain.

Real estate can expand in the same way as Netflix NFLX -3.3% streaming and online shopping have: with a few clicks on the front end linked to smart contracts, a person may become the owner of a property. The ownership is now on-chain and has been legally released from county recording.

The present is the future.

12% of first-time homebuyers in 2021 used their cryptocurrency funds to fund down payments. This indicates that a new generation of buyers is open to employing a different form of payment and buying real estate transactions. This has astoundingly limitless implications. We’ll probably see that the web3 real estate software development market has a $1.7 trillion turnover, but it might potentially reach $3 to $5 trillion.

Young people already have a culture that includes holding cryptocurrency and moving from one place to another for employment, family, or opportunity. Why not purchase a home instead of renting one when moving and have a property in their possession in a matter of minutes?

Now, consumers can see how Web3 (which consists of NFTs, smart contracts, and blockchain) is poised to fundamentally alter the buying and selling of properties. They make transactions more effective, automated, and middleman-free by allowing the entire process to be performed online. Because the entire transaction is conducted on a secure platform, everyone can see what is happening.

The “fraud it till you make it” idea is virtually impossible with web3; either you have a record of transactions on immutable on-chain or you don’t.

You might assume that this innovation won’t catch on because of the mortgage issue, as conventional lenders don’t accept earnings statements from crypto holders. Since crypto portfolios are popular among the new generation of homeowners, major participants in the new finance industry are actively creating unique solutions to offer mortgages for them. Additionally, a number of defi protocols, like XBTO, Milo, and Helio, are hoping to grow in order to offer mortgages and down payment loans to crypto holders.

Another possibility is the creation of a brand-new global real estate market comparable to the current OpenSea NFT marketplace. It might be OpenSea, but purchasing real estate requires that each wallet (which is essentially your login) that you are using to purchase assets be identifiable. In contrast, the present NFT marketplaces were purposefully designed for anonymous users. Therefore, new solutions will need to develop to meet use cases where identities must be tied to wallets. A collection of houses that are all grounded in a strong legal framework overseeing the safe transfer of real property rights and are available for a rapid transaction.

We are not discussing fractional ownership here. With new businesses like SolidBlock, LoftyAI, RealT, and Acrew, the concept—which was already present in crowdfunding platforms and REITs—will be further improved, making it more appealing to the cryptocurrency community. Instead, full ownership of properties is transferred via blockchain, much like when we purchase books on Amazon.

In the end, the core elements of Web3 are ownership of data and assets, decentralized currency and lending, smart contracts, and blockchain. Together, these technologies will deliver the goods and services that customers are and will continue to desire.

Today, actual property ownership in the physical world and virtual property in the metaverse are represented by crypto token standards like ERC721. Smart contracts and blockchain technology are being used to manage transactions, offers, titles, and other things. Consumers now trust smart contracts above small tech businesses and blockchain technologies. Consumers recognise that if their data or an asset is stored in a cryptocurrency wallet, neither a government nor a company can take control of it. And because of this, more use cases, like real estate, will continue to develop and become the newest big things. https://biz-strategy.ae/

Author Bio:

This is Aryan, I am a professional SEO Expert & Write for us technology blog and submit a guest post on different platforms- Technoohub provides a good opportunity for content writers to submit guest posts on our website. We frequently highlight and tend to showcase guests

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