A Breakdown Of Cryptocurrency In The Real Estate Industry

The founders of today’s most popular cryptocurrencies have spent the better part of a decade trying to convince the masses that their technologies have real world applications. If for nothing else, the sentiment regarding cryptocurrency is divisive at best. So is cryptocurrency the next big thing for investors? Or is it nothing more than a short-lived trend?

There’s one thing both sides can’t ignore: cryptocurrency is already starting to make waves in a lot of sectors, not the least of which is the real estate industry. In fact, today’s cryptocurrencies appear primed and ready to disrupt the real estate sector in a way that could change it forever.

WHAT IS CRYPTOCURRENCY?

Instead of serving as a tangible piece of currency, as their names suggest, cryptocurrencies are digital assets that have been assigned an arbitrary value. Cryptocurrency was intended to be used as a digital currency, as a replacement for fiat currencies (legal tender whose value is backed by the same government that issued it, not unlike the U.S. dollar).

As a digital currency, however, cryptocurrency isn’t a coin or even a bill you can hold in your hand. Instead, it uses encryption techniques to regulate the generation of currency and verify the transfer of funds over a highly secured blockchain network.

The most intriguing component of today’s cryptocurrencies, however, is widely believed to be the blockchain network many of their transactions are carried out on. Blockchains were specifically designed to host a decentralized marketplace; one where the transfer of funds may remain unanimous and protected by the highest of securities. In doing so, blockchains require every computer connected to their network to successfully confirm the impending transaction before it is granted permission to proceed.

In its simplest form, many blockchains act as a “smart contract” that doesn’t grant each part access to what it wants until predetermined criteria are met, not unlike an escrow company. In the end, blockchain makes it safer for each party to complete a transaction.

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Disclaimer: The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no ...

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