Global adoption of blockchain technology has already transformed many industries and demonstrated that the rolling tech revolution is irreversible. Yet, despite Nigeria having the highest rate of cryptocurrency ownership globally at 24.2%, most real estate developers and their clients in Nigeria still have a vague understanding of cost-effective and insecurity-proof solutions that blockchain adoption in real estate provides. Blockchain technology reduces the number of intermediaries involved in negotiation processes and deal closure. There are special one-stop-shop real estate platforms that allow conducting more secure and prompt transactions through end-to-end encryption. And with blockchain technology, one can find a property that can be digitized, verified, and directly sold or bought on the platform without numerous middlemen. Blockchain enhances the practice of fractional ownership in real estate. Through blockchain, investors can access a peer-to-peer platform to buy and sell fractions of tokenised properties as they see a good deal. Tokenisation, therefore, gives an opportunity to securely make deals with shares of one real estate asset.
Tokenisation unlocks real estate liquidity by standardizing property titles and records, as well as increasing the speed of transactions which helps avoid loss of value. The information conveyed with blockchain technology is accessible to all peers in the network, making data transparent and immutable. Since information can be verifiable by peers, buyers and sellers can be more confident in conducting transactions. Fraud attempts can be lessened, and land titles – easily verified. Land title verification is particularly important, given the current cumbersome and corruptible system currently in place. Blockchain digitises paper deals and helps track changes in an immutable ledger that acts as a reliable and privately shared repository of assets for peers. it is critical to coordinate actions towards stakeholder enlightenment, educating relevant parties on the incredible possibilities of fully deploying tech in Nigeria’s real estate sector.