Home News Six reasons why blockchain makes sense for commercial real estate: Deloitte

Six reasons why blockchain makes sense for commercial real estate: Deloitte

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Solutions built around blockchain technology have several advantages, such as a censorship-resistant and irreversible distributed ledger.Deloitte research clearly Positioning blockchain as a perfect fit for the real estate use case of leasing and selling.

Blockchain innovations often surpass traditional systems not only by digitizing information, but by introducing a near real-time trustless environment, among other features. Big Four accounting firm Deloitte has revealed her six opportunities for blockchain to disrupt the commercial real estate (CRE) industry.

The infographic above highlights six major pain points in leasing and selling CRE owner-owned properties and maintaining complex transactional data. Against this backdrop, Deloitte identified six opportunities for blockchain to contribute to the industry. This includes improving the process of searching for properties and helping people make better decisions about renting or buying.

With a paperless process, Deloitte envisions blockchain speeding asset and payment valuations and making cash flow management more streamlined. In addition, the technology’s inherent characteristics make it possible to manage asset ownership history more cheaply, while efficiently processing funding and payments.

The study revealed that blockchain technology is suitable to take over more than 50% of the rental and sales process, excluding steps that require physical intervention such as property inspections and loan negotiations. rice field. Deloitte said:

“Blockchain seems best suited for dynamically configurable or communal shared spaces with relatively high numbers of tenants and short lease terms.”

Deloitte’s report reaffirms blockchain’s potential to drive transparency, efficiency, and cost savings for commercial property owners, but businesses and CRE owners are skeptical of blockchain’s best practices. When making decisions, we recommend following a three-step approach: educate, collaborate, or create and promote. Implementation.

Related: Non-fungible tokens do not exist on blockchains, according to experts

in the meantime Non-Fungible Token (NFT) It is touted as a blockchain-based technology, but experts are against the notion.

Jonathan Victor, Web3 storage lead at Protocol Labs, revealed in an interview with Cointelegraph that storing data on the blockchain is expensive because the size of the main chain is very limited. As a result, the NFT ecosystem often opts for off-chain storage solutions.

Rarible co-founder Alex Salnikov told Cointelegraph:

“It is important to understand that an NFT in a user’s wallet only points to the file it represents. The actual file itself, also called the NFT’s metadata, is typically stored elsewhere. “

Despite the revelation, both experts noted that NFT storage can still be considered decentralized.