The surging blockchain market could prove itself to be a valuable tool in real estate purchases. With the abundance of government regulation and brokers, blockchain could increase the liquidity of the real estate market. The additional liquidity could foster demand and command a shift towards higher real estate prices.
Blockchain enables authentic purchases without physical presence. A shift in use from paper to blockchain for physical assets would improve time, security and transactions costs.
Keith Knutsson of Integrale Advisors commented, “even if the impact of blockchain dictates only a small percentage on the overall real estate market, we are talking about an over $200 trillion market; a fraction of a percentage could proof itself to be a valuable niche for investors.”
Currently a host of start-ups are tackling the blockchain real estate market with goals of providing simple transactions, such as a property in the Ukraine that was recently sold, or raising of funds for commercial and construction projects, an area the young company BitProperty focuses on.
Due to the blockchain ledger receiving updates on thousands of computers at the same time, exploitive attacks to alter an entry are mitigated. Even if an attack was possible, the blockchain is transparent and audible. A current hurdle is the digitization of previous records digitization, whose various formats and jurisdictions prove a challenge.
While transactions could see a revolutionary change, blockchain could also impact the ability to alter renting of land and airspace through automatic verification of property ownership in blockchain records, creating new forms of real estate ownerships.