Blockchain boosts security and transparency of real estate markets
- Regulation and fear of job redundancies may discourage blockchain adoption
- Coupled with AI, blockchain expected to lead to reductions in office sizes and increased demand for flexible workspace
Blockchain has become part of the basic vocabulary of many industries over the past decade. The authentication and security possibilities opened by blockchain are of particular relevance for the property sector, and across Asia examples of the technology being applied in the field are already emerging.
Meeting the Need for Speed
In combination with the spread of artificial intelligence and other technological trends, we also expect that blockchain will lead to lower staff requirements in back and middle offices and reductions in office sizes (or at least greater efficiency in office use). Blockchain should thus help accelerate a decentralisation process in the financial sector in particular, and to increase demand for flexible workspace.
Practicalities & Challenges
- Regulation will inevitably lag the technology’s adoption, potentially leaving real estate applications in a grey area or thwarted, if, for example, registries or digital identities aren’t able to garner official recognition.
- Standardisation: Developing shared standards will be a particular challenge in Asia given the region’s diversity of assets, markets and regulatory regimes.
- Vested interests: Blockchain-based solutions could simplify, eliminate or replace some of the roles or tasks currently performed by agencies or legal professionals, such as title searches or the registration of transactions, which may discourage adoption in some segments of the market.
- Infrastructure limitations: Blockchain solutions may not interface easily with legacy systems, as a result many end-users will need to invest substantial time and funds to support a transition.
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