Blockchain in Real Estate…What’s Next?
We have had several posts about the emerging blockchain technology, but it’s been a while. A recent article in Commercial Property Executive takes a look at the “Why, How, What” of this emerging technology. They point out that the word blockchain and real estate have been regularly used in the same sentence over the past several years as well as experts predicting blockchain and cryptocurrencies will continue to impact the real estate industry in the coming years. Indeed…
Blockchain is basically a distributed ledger, validated and stored across all the computers that maintain it—these number thousands or millions. Due to its decentralized nature, the ledger is not managed or owned by an individual or some company, which makes its data immutable and unable to be corrupted. In other words, this database provides perfect transparency—a critical feature in any transaction.
“Blockchain technology in real estate translates into a streamlined transaction that removes intermediaries and the affiliated costs—brokerage fees, lender charges, closing costs, appraisals, inspections and legal fees, etc.”
Regarding the important aspect of security:
“Records are secured in blocks through cryptography and linked. Therefore, tampering with one record would mean having to change an entire series or chain of data blocks,” Rita Greenwood, Americas Head of Research, Cushman & Wakefield