Is the property market ready for the Blockchain revolution?
Blockchain technology is set to change the face of property market in the near future
In the future, when you buy a property, you may view the transaction history of the asset at the click of the mouse.
All thanks to the blockchain technology, which made this possible and allow the new owner to trace the transaction history for clarity. This transparency prevents property buyer from being defrauded by overpaying for the property acquisition.
“Real estate is ripe for blockchain-based disruption due to the complexity of the typical transaction.” said Sam Harvey-Jones, Managing Director of Occupier Services Asia at Colliers International.
On behalf of Colliers International, a global leader in commercial real estate services, Harvey-Jones think that blockchain technology will play a big role for consumer in making purchase decisions.
“Moving land registries, for example, onto blockchain promises to create tamper-proof records, enhancing the clarity and security of property ownership.” he opined.
Thus, checking of property transactions will be a breeze with little hassle especially in areas where data quality or availability is at times lacking, like the case of emerging Asia.
Moreover, the blockchain technology will improve the speed of which property transaction and provide a secure platform for all parties to verify each other’s identities — as well as the history of and data on the real estate asset being acquired or leased.
“Blockchain could be used to build ‘smart’ contracts in which terms and related transactions are automatically, and near-instantly, recorded and immutable.” explained Michael Bowens, Executive Director, Regional Tenant Representation Asia at Colliers International.
Despite the advantages of using blockchain for property transaction, many barriers still exist for the technology to be used in a widespread manner.
For instance, the blockchain-based solutions simplify, eliminate or replace some of the roles or tasks currently performed by agencies or legal professionals.
As such, some market participants may discourage or even prevent the use of blockchain-based solutions just to ensure traditional jobs are not obsolete yet.
Moreover, the hardware of the blockchain technology may not sit well with established property players as they will need to invest substantial time and funds to support a transition or an overhaul of their existing info-communication infrastructure system.
In weighing the pros and cons of blockchain technology, Hackwarenews team feels that there is no stopping of a technology if it can prove to be reliable and convenience for the users. Just like the iphone, if Apple did not invent it, others like Samsung and Huawei will still proceed with the invention of smartphone and market it to the masses.