Real estate is embracing blockchain
James Kaufmann, a partner at Howard Kennedy, takes a look at how blockchain technology and tokenised digital assets are increasingly being embraced by the real estate sector. He notes that the liquidity, accuracy and speed promised by blockchain and digital assets makes the technologies an attractive proposition for property start-ups, records management and construction projects. Recent support for blockchain-backed real estate transaction at a European regulatory level by Germany’s Federal Financial Supervisory Authority, which had hitherto tended to adopt a traditional approach towards regulating its domestic markets, indicates change is on the horizon for the adoption of blockchain, the author writes. Meanwhile, Dr Bob Duncan, a lecturer in accounting and data technology at the University of Aberdeen, writes for RICS about how using blockchain will make real estate deals more secure and more streamlined. He notes that a streamlined blockchain-based land registry will offer the opportunity to trade tokenised real estate securities and open the property investment market for smaller investors.