Crypto, Blockchain and the REALTOR®
by Kim Morris
In 2017, for the first time, a home was sold in an NFT Real Estate auction, on the blockchain, using cryptocurrency.
Did you understand any of that? Me either. But then I had the privilege of interviewing Women’s Council member Liz Glass (NY). “I keep hearing about this,” Liz Glass told herself, “I gotta find out more about it.”
Before we go further with Liz’s journey, let’s define some terms:
* An NFT, or non-fungible token, is a unique digital asset that represents ownership of a real world item.
* Cryptocurrency is any form of currency that exists digitally or virtually; cryptocurrencies don’t have a central issuing or regulating authority, instead they use a decentralized system to record transactions and issue new units.
* A blockchain is a shared, immutable, digital ledger that chronologically records and tracks transactions and assets.
In this new digital world, it’s possible for real estate agents to find a platform to turn an asset into an NFT and market that asset to a particular digital marketplace.
“REALTORS® end up being project managers with thousands of reports to sign,” Liz explains. “Real estate is rife with wire fraud; NFTs on a blockchain eliminate the danger of that fraud because of specific identification codes and authentication processes.”
The system is secure for two reasons: one, each data block has its own unique fingerprint; and two, once that fingerprint is recorded on the blockchain, no one can alter it. And because the system is decentralized, anyone in the system can see the entire history of a data block and therefore see when, how, and with whom that data belongs. Blockchains are transparent and traceable to users, and because information cannot be altered once it is recorded, blockchains are widely regarded as being tough to tamper with.
In addition, there’s an instant turnaround for today’s market. You can register for an NFT auction day-of, make your offer, and have a finalized deal in hours.
“Millennials are a large group of the home-buying market right now. This system works for them because it’s super-secure, it’s an instantaneous process, and it’s overseen by an algorithm programmed to expose alterations,” Liz says.
This is, however, new technology, so studying the pros and cons is imperative for anyone interested in incorporating it into their current business practice. Understanding the jargon and the details in each area is imperative. Research cryptocurrency and blockchains to understand what’s out there and what’s right for you. Reach out to people who know, and reach out to other members who may have an interest.
Liz Glass decided to learn more by getting her crypto certification. With a crypto certification, you learn best practices and what the present and upcoming markets are forecasted to be for real estate transactions on a blockchain.
While she’s looking forward to her first crypto transaction, Liz says, “I’m trying to learn as much as I can and share the little I know. This is a way to stay on top of your game. It’s a tool for the future.”
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Check out these links for more information on real estate NFTs, blockchains, and cryptocurrency transactions:
About the Contributor
Kim Morris is a Chicago-based freelance writer and editor with more than 25 years of writing experience.