The study reveals that blockchain technology is well positioned to take over 50% of the entire commercial real estate leasing and sales process.
Solutions built around blockchain technology offer a number of advantages, including a censorship-resistant and irreversible distributed ledger. Deloitte’s study revealed blockchain’s position as a suitable fit for real estate use cases around leasing and sales.
Blockchain innovations often surpass traditional systems by not only digitizing information, but also introducing a near-real-time trustless environment, among other features. Big Four accounting firm Deloitte found six opportunities for blockchain to disrupt the commercial real estate (CRE) industry.
The infographic above highlights six pain points for CRE owners who rent and sell their properties and maintain complex transaction data. Against this backdrop, Deloitte outlined six opportunities for blockchain to serve the industry, including improving processes around property searches and helping people make better decisions about leasing and buying.
Due to its paperless processes, Deloitte predicts blockchain will speed up property and payment valuations and better facilitate cash flow management. In addition, the technology’s inherent features provide a more affordable means of managing asset ownership history while allowing for efficient processing of financing and payments.
The study reveals that blockchain technology is well positioned to take over 50% of the leasing and sales process, excluding steps that require physical intervention, such as property inspections and loan negotiations. Deloitte stated:
Deloitte’s report confirms the power of blockchain to drive transparency, efficiency and cost savings for commercial real estate owners, companies and CRE owners are advised to follow a three-step approach – educate, collaborate or create, facilitate – the best path to blockchain to determine setting
Related: Fungible tokens don’t live on the blockchain, experts say
While fungible tokens (NFTs) are heralded as a blockchain-based technology, experts contradict the idea.
Speaking to Cointelegraph, Jonathan Victor, head of Web3 storage at Protocol Labs, revealed that blockchains are very limited in size, which in turn makes storing data on the blockchain expensive. As a result, NFT ecosystems often opt for off-chain storage solutions.
Alex Salnikov, co-founder of Rarible, confirmed the previous claim as he told Cointelegraph:
Despite the outbreak, both experts noted that the storage of NFTs can still be considered decentralized.
