Blockchain has become one of the biggest buzzwords in the world in the last 12 months. But not many people actually understand it or know what is it, what it does, or the purpose its serves.
Blockchain is synonymous with cryptocurrencies, in particular, Bitcoin. They are two separate elements, however. Blockchain is the underlying technology the powers all cryptocurrencies. A blockchain is a public ledger. Essentially, a public record that anyone can view in real-time. The transactional data that is stored on these ledgers is immutable. Once a transaction or a valuation, or a title deed has been recorded, nobody can change it. This reduces the risks of fraud, saves time, and ensures security and transactions around all transactions.
Another benefit of the blockchain is the speed with which transactions are done, and the data is stored. Once a transaction has been completed, the data is stored instantaneously. There is no need for it to go through various chains of command, neither is there the risk of the data losing its integrity, in any shape or form.
The above scenario lets on to tremendous opportunity for processes in the property to be made more efficient.
Institutions such as the Bank of China and HSBC are using blockchain technology to do property valuations, where they are able to store critical data such as property addresses, valuations, and other such things (medium.com). Another example is the property marketplace, Propy where anyone can buy and sell investment properties on using blockchain, purchasing them with any cryptocurrency of their choice. The whole enchilada, from payment gateways to online documentation, integrated into one platform – backed by blockchain.
More detail on blockchain and its intersection in next week’s blog!