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NAR suggests blockchains could become more relevant for the real estate industry

(TECH NEWS) Blockchains are commonly used in terms of Bitcoins and currency, but a new study by the NAR suggests they have the potential to be even more relevant to the real estate industry.

blockchain internet of things crypto

Blockchain tech has gotten a bad rap

Blockchains have gotten a bit of a bad reputation, given the term is often used interchangeably with the term “Bitcoin.” Bitcoins have a tendency to cause a bit of angst, and most people feel strongly about them, whether for or against the digital curency.

That said, blockchains are quite relevant to many industries and not just in terms of currency. The term “blockchain” was coined as a way to differentiate itself from the currency connotation of the “Bitcoin.”

Super brief blockchain primer

If you aren’t familiar with blockchain technology, we have discussed it quite a bit. There is a great summary of what this technology is and how it functions by The Real Daily’s PJ Brunet, here.

If you take a look at his article, you’ll understand a bit more about what this technology is and how it could help many other industries. While we have primarily focused on how blockchains pertain to Bitcoins, there are so many other ways this technology can be employed elsewhere including the real estate industry, but don’t take our word for it.

A look at the NAR’s reports

NAR is looking at how blockchain technology can be leveraged in the real estate industry. In a two-part series, the NAR examines the usefulness and relevance of blockchain technology.

The first part describes the technical difference between blockchains and traditional data management, while the second part discusses relevant application and how this technology can be used effectively.

Why blockchains make a difference

In part one of the series, the NAR states, “Bitcoin uses blockchains, but they can support more than just digital currency.”

This is easily the most important statement to make here.

Most people think of them as one and the same, but blockchains can do more than handle digital currency. Part one is an overview of the technical aspects of blockchains.

Some of it is a bit overwhelming if technical facts and figures don’t thrill and delight you, but it’s worth digesting to enrich your technological understanding.

Near the end of the report, however, there is a great statement on why blockchains make a difference: “…blocks can contain one or more transactions. High transaction rate systems should try to include as many transactions into a block as possible to reduce the time it takes for each node to reach consensus that the work is accepted.”

In essence, each chain could speed up the workflow towards a goal, making it ideal for asset tracking or supply chain management.

How real estate professionals can benefit

In part two of the series of the NAR’s report, they address the potential uses for blockchains.

Since blockchains store information differently than traditional databases, they offer some additional benefits.

For example, they could be used to improve (speed up) listing systems by “providing an accurate, fast status of the listing and collect events in the lifecycle of the listing.”

They could also be used to track title changes and county records, as blockchains are excellent at “looking back” at past actions and changes.

[clickToTweet tweet=”Blockchains can speed up listing systems, simplify home tours, lockboxes in how they store data.” quote=”Blockchains also hold the potential to simplify home tours, lockboxes, and showing scheduling simply because of the way in which they store data.”]

Balancing risk and reward

While there are some pitfalls of using blockchains, some of which are simply because they have yet to be tested extensively, there are also a full range of potential benefits.

It will be interesting to see if more agencies and app developers look towards blockchain technology for innovation.

#REblockchains

Jennifer Walpole is a Senior Staff Writer at The American Genius and holds a Master's degree in English from the University of Oklahoma. She is a science fiction fanatic and enjoys writing way more than she should. She dreams of being a screenwriter and seeing her work on the big screen in Hollywood one day.

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