How the Web3 is Revolutionizing Real Estate Industry
An alternative future for asset ownership is currently being developed for blockchain. This Web3 move introduces a distributed ledger and open-source information management framework that can be created for any transaction on the same platform that enables the existence of cryptocurrencies. As a result, all owners of physical and digital assets can complete complex financial transactions directly with their colleagues, such as selling company stock. Web3 programming’s promise of optimizing data management, security, transparency, accuracy, and fluidity is attractive. Truth, not trust, is the motto of this new generation of investment managers.
How is Web3 changing the real estate industry?
Web3 is changing the real estate industry in countless ways. Unlike the traditional home buying process with endless documentation and legal hassles, Web3 gives buyers a click-to-close experience.
“With the help of his Web3 technologies such as contracts, NFTs, and blockchain, Smart has enabled real estate assets to be seamlessly transferred by all parties involved — buyers, sellers, and brokers,” said HouseEazy co-founder Mr Tarun Sainani said- A platform for buying and selling homes.
Sainani said, “such online transactions are already taking place abroad, with payments being processed via cryptocurrencies. According to a survey by real estate broker Redfin, 11.6% of first-time homebuyers use cryptocurrency funds to secure their down payment”.
Experts say that the user-centric and data-driven nature of his Web3 brings endless opportunities to real estate marketing.
How is web3 a good alternative for the real estate sector?
Web3 in real estate is better than traditional real estate in many ways. Blockchain, NFTs, and other Web3 technologies create a decentralized ecosystem that eliminates the need for third-party providers. This significantly reduces investors’ additional costs on brokers, realtors, and banks. Human intervention in traditional real estate transactions is replaced with immutable code that leaves no room for negotiation or change. There is no need for troublesome paperwork. Web3 Real Estate revolutionizes traditional real estate investing by:
1) Blockchain-based smart contract:
Smart contracts can significantly speed up the entire transaction process by eliminating the intervention of bankers, brokers, and lawyers.
2) Transparent and secure property listing service:
Most property listing services are privately owned today, and many do not have a centralized cross-reference database. Also, people still use outdated and inefficient methods to track transactions and other records, requiring users to pay hefty subscription fees.
Nevertheless, moving such real estate listing services to decentralized blockchain-based servers provides a unified and secure database. By leveraging web3’s Decentralized Finance (DeFi) service, users can make modest investments, and all transaction details are immutably recorded and kept safe. We also guarantee that no third parties have interfered with our database, inflated prices, or entered unauthorized information into our system.
3) Accessible real estate investment:
Real estate infrastructure was exclusive and time-consuming. Investing in real estate, whether it’s a studio apartment or commercial property, means multiple parties involved. Therefore, you should ensure sufficient funds before considering any real estate investment. However, blockchain technology has made real estate investments more accessible to interested people.
Using web3’s blockchain technology, multiple people can collectively purchase and jointly own tokens for a specific property. Blockchain tokenization capabilities facilitate partial or fractional ownership of assets, increasing real estate liquidity. Real estate segregation is nothing new, but web3 streamlines the process and attracts a larger pool of potential investors. As a result, everyone can buy and sell their stocks cheaper and faster.
Web 3.0 real estate example
Decentraland, Ethereum, and BigchainDB are examples of projects already using Web 3.0 and the Metaverse. These projects harness the power of blockchain technology to create a new paradigm in construction and real estate.
Decentraland is a virtual world where users can create, share and sell digital assets. The world consists of 90,601 properties. Users can purchase these parcels and pay with the cryptocurrency MANA. Before confirming a purchase, users can check neighbourhoods, assess distances to well-known locations, and determine if a particular metaverse country suits their needs. Also, in Decentraland, you can buy land and rent it. So if you need to host an event such as a conference or trade show, you don’t need to purchase Metaverse real estate.
Ethereum is a decentralized platform that enables developers to create smart contracts and decentralized applications. The Ethereum engine processes millions of transactions grouped into blocks. Each block is connected to the previous block to form a blockchain chain of blocks. Ethereum offers a wide range of technical possibilities for creating smart contracts (programs that use mathematical algorithms to control the execution of transactions). For example, smart contracts play a crucial role in real estate development in the Metaverse. Know the buying and selling terms and ensure that all parties meet their obligations.
BigchainDB is a scalable database that allows users to store large amounts of data without worrying about scalability issues. When building an NFT property marketplace or property management tool in the Metaverse, you no longer have to worry about your product functioning properly as your project grows and your data is securely recorded, stored, and processed.
Virtual Real Estate
Virtual or metaverse real estate is the next big thing in the real estate world. With tech giants and corporations vying to own land in the Metaverse, it will undoubtedly be a game changer and mark a massive transition to Web3. A Metaverse Real Estate is a set of properties in a virtual universe that people can buy, sell, trade, or even rent. Metaverse land is currently in high demand and could become even more critical in the future, making it a great investment opportunity for investors.
According to a Citi GPS report, the Metaverse market could attract up to 5 billion users and grow from $8 trillion to $13 trillion by 2030. Metaverse properties can be purchased by paying with cryptocurrencies on popular platforms such as Sandbox, Decentraland, and Somnium Space. People can buy land in the Metaverse, customize it to their needs, build what they need, rent it out to others, etc. There are also Metaverse rental spaces like Metavesal. Anyone can rent it to host his Metaverse meetings, events, and more.
If your real estate business is ready to implement web3, we can help. First, consult a Web3 based development company to see the feasibility of your ideas and future-proof your business.
Contact us if you need a reliable technology partner to launch your Web3 project.
When starting a Web3 real estate marketplace, the first step is choosing the right development team. Our highly qualified team, experienced in various blockchain projects, will advise you on technologies, features, and tools depending on your budget, goals, and expected deadlines.
Originally published at Reveation Labs Blog.