Blockchain As A Technology could be the future of multifamily?

Have you ever tried to explain the notion of cryptocurrency to someone who is unfamiliar with it? What about blockchain and non-fungible tokens (NFTs)? The attempts may result in tiresome talks in which you must explain again how cryptocurrency works like ordinary currency but is not maintained in a bank—defining concepts such as fungibility and convincing others that it is not a fraud.

Confusion and doubt frequently precede the acceptance and appreciation of breakthrough innovation. True, there have been a few bad apples in the cryptocurrency crop recently, but the concept and underlying technology are far from unsound. Many people, including myself, feel that cryptocurrency will be the next big step in payment processing, as well as storing and verifying transaction data. As new use cases emerge, it has the ability to transition from the realm of the fantastic to the standard for secure worldwide transactions. The multifamily industry is included in this.

Blockchain technology is ideal for the multifamily sector.

The multifamily residential business is one that might benefit greatly from blockchain innovation. Some foresighted landlords already accept Bitcoin and other cryptocurrencies as rental payments. Others utilize cryptocurrency to make investments in new properties, with their transactions securely recorded on a blockchain. When will the rest of the world join in?

I believe blockchain is well-suited to manage title insurance policies, deed transitions, and other sensitive data associated with real estate transactions. All transaction records are cryptographically linked together and stored in a block on the chain using this manner. The transaction cannot be changed once it has been recorded, ensuring a safe, simple, accessible, and publicly distributed ledger method. Blockchain provides instant access to the exact transaction date, amount, and account balance. There are already 44 million blockchain wallet users around the world, with more than half of them created in the last five years.

With cybersecurity crime on the rise, it appears that the attraction and inherent data control of self-sovereign identification (SSI) will propel this trend to become normal practice. Self-sovereign identities are decentralized digital identities. Users can self-manage their identities and personal information without relying on third-party companies to store and centrally manage their data. Crypto, blockchain, NFTs, and SSI technologies are developments that have the potential to transform multifamily real estate as well as the way we buy and record transactions.

The matrix of services associated with blockchain technology and cryptocurrencies has the potential to establish an ecosystem for how we live, buy, invest, and achieve personal goals. Rental payments are only one example of a use case. Here are the uses I see for these developing technologies in the multifamily business in the near future.

• Using blockchain to sign, record, and file residential leases and other lease-related papers.

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• Increasing the usage of cryptocurrency for rental payments and safe transactions using biometrics on smart devices.

• Democratization of real estate investment by allowing anybody to acquire and sell fractional and incremental amounts of cryptocurrency.

• Renters invest in their own rental units, which results in improved property stewardship and personal profit if the property is sold.

• Property owners and managers who give crypto and NFT prizes and incentives for on-time rent payments, referrals, and early renewals in the form of NFTs for furnishings, art, community shops, restaurants, onsite amenities, and fractional ownerships.

Why Property owners help their neighborhood by providing NFT pop-ups to local stores, supermarkets, and events on tenants’ phones, creating a sense of community and convenience that appeals to existing and potential renters.

Multifamily operators must embrace the future now.

As more future residents possess bitcoin and seek places that accept its use, a multifamily residence can become the perfect illustration of this contemporary lifestyle. Adults aged 25 to 34 will be the greatest cryptocurrency ownership group by the end of 2022, followed by those aged 35 to 44, who also represents the highest demography of rental ownership.

To maximize on its future potential, the multifamily sector should be encouraged to join a blockchain ecosystem. Multifamily operators may get started right away by choosing and accepting a cryptocurrency for rental payments, experimenting with NFT services and incentives, and developing a community environment to attract the next generation of tech-savvy and convenience-driven tenants. When that occurs, you will no longer need to explain NFTs because they will most likely be using them themselves.

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