Although the real estate business one of the first industries targeted by blockchain tech, integration into the industry has slowed to a crawl.
Every industry is considering adding blockchain tech to their way of doing business. There are few downsides when implemented correctly, and it’s the only way to show one hundred percent publicly verifiable transactions as they occur.
The attention that the real estate industry garnered early on has recently come to a standstill, however.
Now, industry experts are taking this moment of calm to sit down on discussing different ways that the blockchain could be more beneficial to the real estate market.
The Experts Weigh In
Larry Solomon, of TheGuarantors, feels the blockchain would be compelling in title registrations and escrow services. He sees it as a natural and straightforward improvement over the current way, but foresees definite barriers:
Two natural areas where blockchain can add value relate to escrow services and title registration. Roadblocks include potential litigation related to escrows and the entrenched industry incumbents for title services. In both of these areas, some combination of advocacy groups along with government intervention could make progress.
Most would be hard-pressed to disagree with Mr. Solomon’s ideas of where to use the blockchain in the Real Estate world, but Michael Sroka, of Dealpath, Inc., asks for caution when applying new tech:
The biggest challenge in the industry will be finding the right application of blockchain, as opposed to force-fitting it into various scenarios. We have a tendency to get overzealous about applying tech, but we need to focus on being proficient users of the best software, not just the coolest. Understanding blockchain will be one of many things in the real estate tool belt that will make a huge difference.
These two viewpoints sum up the debate in the real estate market over the blockchain. There is real potential for its use to speed up and ensure accuracy in the process, but without people seeing it as a need, there won’t be much progress in the field.
Chris Ryan, of Luxury Lifestyles Group, sums the viewpoint of a lot of those in the business up succinctly:
The two biggest hurdles that I see in bringing blockchain to real estate is shedding the negative perception on cryptocurrency and overcoming the dinosaurs in the real estate industry who don’t want change, even though it brings more transparency and ease to real estate investing. My prediction is this style of investing is going to be the biggest game changer the real estate market has ever seen.
Eventually, forward thinking will outweigh the conservatism seen in the industry, but for now, progress will be slowed as those set in old ways fear changes. Still, there is promise as the tech becomes more mainstream and less novel.