How will blockchain affect the property world?
Blockchain is being hailed as a new technology that could reinvent the property sector.
Simply put, it’s a shared record of transactions – but let’s look at blockchain technology in a little more detail to understand why it’s generating such excitement in the property world.
What is blockchain?
Blockchain is a digital ledger where transactions are made in bitcoin or another cryptocurrency and recorded chronologically and publicly. It’s the secure ledger system behind the Bitcoin cryptocurrency.
Essentially blockchain technology compiles records of transactions into systems called blocks. These blocks are secured cryptographically and contain a digital fingerprint of past and present records.
Blockchain and land registry
In the world of property, blockchain technology could cut costs – once it’s been adopted in the industry – and enable a secure method of instant transfer of property ownership.
Across the globe, land registries are investigating the possibilities of utilising blockchain as it could provide a method of instantly transferring property ownership in a secure way. As a result, there are a number of different trials of blockchain being carried out around the world.
In the UK, HM Land Registry has said it plans to create a virtual ‘digital street’ to test the new technology and called blockchain technology a “highly ambitious objective” that would require the most “far-reaching transformation in their 150-year history”.
If blockchain technology was to be used for land-registry transactions, it could bring about significant benefits. Amongst these would be the ability to automatically process contracts. And as a result of this, considerably cut costs.
Then there’s the element of security. Blockchain would make land registry transactions a completely digital experience and help secure identity records.
Blockchain and property investment
In the world of property investment, blockchain has the potential to remove barriers and increase liquidity whilst being transparent.
The unitisation of direct property holdings can be achieved, and income from property holdings split, making property investment more fluid and tradeable.
If you incorporate property finance, listings and property management into the blockchain - and provide a multi-lingual platform with standardised regulatory compliant documentation – you’re essentially opening up the property market to multiple nationalities and making it more affordable to investors.
Simplifying property processes
Although it’s still early days, blockchain has the potential to reduce deal times and bring a whole new liquidly to property investment. At its core is the ability to decentralise property investment with an online ledger that simplifies the trading of assets.
As the legal processes around property investment become paperless, you can shorten deal times, cut administration costs – and basically take back control of the way you handle property deals.
Find out more about blockchain and property investment
Visit dominium.me a decentralised, regulated, property financing, property listing and property management platform.
Dominium is being developed by industry professionals as a tool to improve services to their existing and future clients, having identified weaknesses in their own market. Using third generation blockchain technology to modernise one of the most established yet antiquated industries in the world, Dominium is an international platform on which regulatory documentation for property funding is standardised, and assets are placed on the blockchain alongside property sales, rentals and management.