What Is Blockchain and How Does It Effect Commercial Real Estate

Recently, we’ve seen all of the advances with blockchain technology in the financial markets both for it’s simplicity and its proof of work concepts.

Here is a great article from Coindesk that explains the trend if you are not familiar with what’s been going on.

Imagine Trust:Blockchains Growing Trust In Financial Services

Blockchain is going to be coming to commercial real estate transactions also.

Here is the beginning part of a fantastic article

What is Blockchain and How Does It Apply to Real Estate

The internet made it possible for individuals to transfer information, quickly, cheaply and paperlessly without obtrusive intermediaries. Similarly, blockchain technology offers the same advantages for transferring VALUE. You use the internet to transfer words and pictures. You use blockchain platforms to transfer money and assets.
Blockchains basically consist of a distributed ledger and a cryptocurrency. When people say “The blockchain,” 85% of the time they’re referring to Bitcoin, 10% of the time to Ethereum and 5% to other projects.

The Blockchain will transform real estate in four ways:
1. Disintermediation
2. Fraud prevention
3. Money 2.0
4. Smart contracts

DISINTERMEDIATION

Transacting real estate is cumbersome, opaque and expensive because of middlemen:

1. Brokers
2. Government property databases
3. Title companies: Insurance and property databases
4. Escrow companies
5. Inspectors and appraisers
6. Notary publics

Do you like paying these six parties? Do you like waiting and depending on them? Bitcoin, Ethereum, and others can disintermediate many of them. That means cutting out the middleman

So now you have the understanding of how blockchain is going to change the CRE market. The question here is not “if” but “when” these changes are going to take place

So click on the link above and get some insight — trust me — you’ll be glad that you did.