The Real Estate Industry is Being Disrupted by the Blockchain

prime-ex-perpetual

Real estate is an industry that has been around for thousands of years and to be completely honest, it’s stayed relatively the same for a while. You have a buyer and a seller and more than a couple intermediaries making handsome commissions off their work.

The industry is similar to the finance world in which a lot of middle-men make a lot of money off of the business that they close. Enter blockchain technology, where you will have an opportunity as a seller to list your property or asset on the blockchain and be able to transact almost instantly with interested buyers from all over the world.

This is just the beginning though and the potential for the technology within the industry is huge. For example, have you ever sold or bought a house and had the payment and settlement take weeks to close? I’m sure more than a handful of you have. This can be a huge nightmare for real-estate agents when this happens because they won’t get paid until after everything is settled.

The blockchain has the capability to transfer funds between buyer and seller basically immediately and through cryptography implemented on the blockchain, utilizing the ability to verify identities of each party through the blockchain. Meaning the transaction is also highly secure.

Benefits of the Blockchain

Another great thing is that through the use of smart contracts, there is no need for 3rd party escrow services or necessary fee charges. Yes, you heard that right by using smart contracts you won’t have to pay any fees and as soon as the job is done the money is deposited into your account instantly.

Hopefully, now you are starting to see how powerful and disruptive blockchain technology can be for many industries, not just real estate.

To give more insight I thought I would bring to your attention a real-estate company from Panama called Prime-Ex Perpetual that is utilizing the WAVES blockchain platform to solve a huge problem out there; lowering entry barriers to obtaining financing for a home.

They have chosen to start in Panama and then expand to other countries in the coming years. You may be thinking, how can they do that?

Well with the WAVES platform and blockchain they are able to bypass the bureaucracy involved with residential lending and implement top-level security options that limit the homeowner’s security risk with smart contracts and other mechanisms.

Obtaining residential financing in a country like Panama has only been available to elite expats and wealthy individuals. Prime-Ex Perpetual will solve this problem with their solution. They are lowering the barriers of entry for financing, decreasing the risk of the homeowner, and leveling up the security of their investment. But remember obtaining financing for a house can be troublesome even for a successful entrepreneur, so the problem Prime-Ex Perpetual solves is massive in scale.

Now you might be wondering why they picked Panama? To get an answer to that question I decided to ask their Co-founder & Director, John Gilbert.

Panama has long been known as a tax-haven for many years, so investing in our concept here is a no-brainer. I’m confident we can help bridge the gap that is left unfilled for quality people to obtain financing for a home.  We already have people that know what we’re doing wanting to buy houses that we haven’t even started yet. All signs point to us being able to make a very big splash in the local market, and this is just the start. – John Gilbert –

After I chatted some more with John about the direction of the company he also told me to keep in mind that they have plans for “global expansion”. Prime-ex presents a great use case of the adoption of blockchain technology in the real estate industry.

What leaves me most optimistic is the fact that this is just one example of how blockchain technology can be implemented into the real estate industry. I know there will be more, but Prime-Ex Perpetual has decided to take the lead in an industry ripe for disruption.

Interested in learning more about their upcoming Initial Coin Offering? Make sure you check out their website here.

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