{"id":15569,"date":"2022-12-10T11:00:36","date_gmt":"2022-12-10T11:00:36","guid":{"rendered":"https:\/\/statanalytica.com\/blog\/?p=15569"},"modified":"2024-04-11T10:27:56","modified_gmt":"2024-04-11T09:27:56","slug":"blockchain-is-disrupting","status":"publish","type":"post","link":"https:\/\/statanalytica.com\/blog\/blockchain-is-disrupting\/","title":{"rendered":"4 Ways Blockchain is Disrupting the Commercial Real Estate Industry"},"content":{"rendered":"\n<p>A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format.<\/p>\n\n\n\n<p>Whatever your own experiences with or impressions of the blockchain, its disruptive potential cannot be denied, as it has already made waves in a number of industries.<\/p>\n\n\n\n<p>Commercial real estate (CRE) is one of the better examples of how the influence of blockchain technology is gaining traction, with several elements of this sector already being shaped by it.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-transformation-of-transactions\"><\/span><strong>The transformation of transactions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3010ba1e6b7\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ff5104;color:#ff5104\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ff5104;color:#ff5104\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3010ba1e6b7\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/statanalytica.com\/blog\/blockchain-is-disrupting\/#the-transformation-of-transactions\" >The transformation of transactions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/statanalytica.com\/blog\/blockchain-is-disrupting\/#the-digitization-of-asset-transfers\" >The digitization of asset transfers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/statanalytica.com\/blog\/blockchain-is-disrupting\/#the-prevention-of-fraudulent-activities\" >The prevention of fraudulent activities<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/statanalytica.com\/blog\/blockchain-is-disrupting\/#the-marketing-of-commercial-properties\" >The marketing of commercial properties<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/statanalytica.com\/blog\/blockchain-is-disrupting\/#the-bottom-line\" >The bottom line<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<p>One of the main ways in which the <a href=\"https:\/\/www.northspyre.com\/blog\/blockchain-the-final-link-in-commercial-real-estates-tech-revolution\" target=\"_blank\" rel=\"noreferrer noopener\">blockchain will change commercial real estate<\/a> relates to how contracts can be managed and executed.<\/p>\n\n\n\n<p>Transactions for CRE projects are complex, costly and rarely efficient in their nature. Making use of smart contracts hosted on the block chain, multiple parties can enjoy an automated, decentralized and indelible tracking of obligations which is also entirely transparent.<\/p>\n\n\n\n<p>This should speed up transactions, without compromising on trust. And of course the tech doesn\u2019t just apply to buying and selling buildings, but also covering all sorts of other contracted agreements, whether that\u2019s between developers and construction firms, lenders and any other parties.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-digitization-of-asset-transfers\"><\/span><strong>The digitization of asset transfers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Cryptocurrencies have become a controversial topic, and yet even with price volatility, rug pulls and the collapse of entire exchanges, frontrunners like Bitcoin <a href=\"https:\/\/statanalytica.com\/blog\/have-cryptocurrency-in-your-portfolio\/\" target=\"_blank\" rel=\"noreferrer noopener\">are still seen as inherently valuable<\/a> by many.<\/p>\n\n\n\n<p>This in turn means that crypto assets represent a means of transferring wealth, and of conferring ownership of a physical space through digital methods.<\/p>\n\n\n\n<p>In the case of the former, being able to complete CRE transactions with crypto tokens changing hands in addition to or in place of fiat currency is an intriguing prospect.<\/p>\n\n\n\n<p>With the latter, the possibility of equating ownership of a given token to ownership of commercial unit floor space is especially disruptive.<\/p>\n\n\n\n<p>Proponents are predicting that this so-called tokenization of CRE will make it much more akin to liquid assets, rather than being more of a burden to use and trade.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-prevention-of-fraudulent-activities\"><\/span><strong>The prevention of fraudulent activities<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The blockchain is all about using various mechanisms <a href=\"https:\/\/www.techtarget.com\/whatis\/definition\/consensus-algorithm\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">to come to a consensus<\/a> about data, rather than relying on a single, central entity to say what is and what isn\u2019t accurate.<\/p>\n\n\n\n<p>This makes it inherently more resistant to fraud and manipulation than traditional setups, and the upshot is that using it to manage things like CRE transactions and investment in construction projects will dramatically reduce the likelihood of fraud being committed.<\/p>\n\n\n\n<p>It\u2019s the aforementioned transparency which also comes into play here. You can\u2019t change data on the blockchain without reaching a consensus, and if tampering is attempted then it is easy to trace.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-marketing-of-commercial-properties\"><\/span><strong>The marketing of commercial properties<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For developers and agents that want to get their commercial premises seen by prospective leasers or buyers, the options at the moment are fairly limited. There are a <a href=\"https:\/\/www.investopedia.com\/best-real-estate-websites-5069964\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">handful of mainstream listings platforms<\/a>, and to market on them costs quite a lot of cash.<\/p>\n\n\n\n<p>Things are made more complex by the fact that no two of the listings platforms use the same standards and processes for formatting real estate ads, which increases the amount of legwork involved in using them all.<\/p>\n\n\n\n<p>Migrating listings to the blockchain would fix this instantly, because the decentralized nature would allow for newly available locations to be promoted swiftly, efficiently and affordably to a large audience.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"the-bottom-line\"><\/span><strong>The bottom line<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Some of the effects of the blockchain are already being felt in CRE, while others will take longer to percolate and generate disruption. Even if this shakeup is not permanent, the influence of the blockchain will change how traditional technologies are used in this arena, forcing all parties to up their game as a result.<\/p>\n\n\n\n<p><a href=\"https:\/\/statanalytica.com\/blog\/vr-revolution-the-future-of-immersive-entertainment\/\">Learn more by following this link<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. Whatever your own experiences with or impressions of the blockchain, its disruptive potential cannot be denied, as it has already made waves in a number of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":15571,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[1153],"tags":[1981,1980],"class_list":["post-15569","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sponsored","tag-blockchain-is-disrupting","tag-what-is-blockchain"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/posts\/15569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/comments?post=15569"}],"version-history":[{"count":0,"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/posts\/15569\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/media\/15571"}],"wp:attachment":[{"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/media?parent=15569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/categories?post=15569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/statanalytica.com\/blog\/wp-json\/wp\/v2\/tags?post=15569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}