6 Reasons why blockchain is right for commercial real estate

Blockchain-based solutions offer a number of initial benefits, including anti-censorship protection and irreversible distributed ledgers. Deloitte research has shown that blockchain is an ideal place to use real estate focused on renting and selling.

Blockchain innovations not only digitize information, but also create unreliable, near-real-time environments that often outperform existing systems. Big Four accounting firm Deloitte has taken advantage of six blockchain capabilities to disrupt the commercial real estate industry (CRE).

The infographic above highlights six key challenges CRE owners face in leasing, selling and storing complex transaction data. Against this backdrop, Deloitte highlighted six opportunities for blockchain to serve the industry, including improving processes related to property searches and making better rental and purchase decisions.

Through a paperless process, Deloitte anticipates that blockchain will speed up property valuations and payments and make cash flow management more efficient. In addition, the unique nature of the technology provides a cheaper means of managing a property’s ownership history while providing efficient processing of financing and payments.

This study shows that blockchain technology is in a good position to provide more than 50% of the lease and sale process, excluding steps that require physical intervention, such as property inspections and loan negotiations.

The Deloitte report confirms blockchain’s potential to increase transparency, efficiency and cost savings for commercial property owners, while recommending that companies and CRE owners follow a three-step approach: learn, collaborate or create and promote to determine the best way to implement blockchain.

The non-functional token (NFT) has been advertised as a blockchain-based technology, but experts deny the concept.

Jonathan Victor, head of Web3 storage at Protocol Labs, told Cointelegraph that the size of the main chain is very limited and that it is ultimately expensive to store data in blockchain. As a result, NFT ecosystems often opt for standalone storage solutions.

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