What is Crypto currency?
The word “crypto currency” is derived from the encryption techniques which are used to secure the network. Crypto currency is a form of payment that can be exchanged online for goods and services. Crypto currencies work using a technology called block chain.
Block chain is a decentralized technology spread across many computers that manages and record transactions. This technology is mainly used for security.
Crypto currency is the name given to a system that uses cryptography to allow secure transfer and exchange of digital tokens in a distributed and decentralized manner .Many crypto currencies are decentralised networks based on block chain technology.
There are different types of crypto currency. The first technology is a block chain technology which is based on crypto currency as bit coin, which still remains the most popular and most valuable. Today, there are thousands of alternate crypto currencies with various functions and specifications.
What is crypto currency in Real Estate?
Crypto currency has been increasingly making its way into real estate transactions in various ways. Crypto currencies have made a strong impact on payments, remittances and foreign exchange. The introduction of smart contracts in block chain platforms now allows assets like real estate to be tokenized and be traded like bit coin and either.
How does it work?
Crypto currency works using the technology called block chain. Block chain is a decentralized technology spread across many computers that manages and record transactions. Part of the appeal of this technology is its security.
The main point of crypto currency is to fix the problems of traditional currency by putting the power and responsibility in the holder’s hands.
How is crypto currency used in Real Estate?
The raise of Crypto currency in real estate has been increasing making its way into real estate transactions in various ways. One of the most visible ways that bit coin has been showing up in real estate is through home listings. Several sellers and agents have been using this tactic to create more buzz and attention for their properties. This appears to be an increasing trend as many have enjoyed big wins in crypto currency and looking for a way to balance that and preserve their gains by converting them into tangible real estates.
Why is Crypto currency so important?
Crypto currency is important as transactions are fast, digitally secured and worldwide, which in turn allow the maintenance of records without risk of data being pirated. Fraud is actually minimized.
Advantages of Crypto currency in Real estate:
There are many potential benefits and usages of crypto currency in Real estate;
- Privacy while buying property.
- Liquidity in real estate investing.
- Secure and private.
- Currency exchanges can be done easily.
- Protection from inflation
- A fast way to transfer funds.
Disadvantages:
- Can be used for illegal transactions.
- Data losses can cause financial losses.
- Susceptible to hacks.
- No refund or cancellation policy.
- Cyber Security issues.
Technology behind Crypto currency:
“ Crypto” means various kinds of cryptographic techniques used to secure a particular entity. So when it is combined with “currency”, it creates an idea of a payment or a trading medium that is secure under different cryptographic techniques.
Block chain In Real estate and why it is so revolutionary:
Block chain is often referred to as “the new technology of trust” . The most important advantage of block chain technology is security. All information is encrypted and stored in a block chain ledger that cannot be altered or hacked because it is managed by a cluster of computers.