Blockchain is undoubtedly the most exciting and innovative technology in the last few years. It certainly has the ability to disrupt and revolutionize many static industries that are slow-moving. Real estate is one such industry, and one that many blockchain experts believe will be among the first to be disrupted as the power of blockchain continues to be harnessed.
The real estate industry, with little innovation over the last century, has nearly a dozen crucial areas that can be improved upon with the introduction of blockchain, according to New York City-based consultancy firm BlockchainDriven. BCD’s experts are well known names in the field with vast experience in fintech, innovation strategy, and blockchain development.
Moving forward, there are many ways that blockchain and the real estate market can help one another. Here are a few cases where we have started to see this promising relationship blossom:
Meridio is a unique and powerful tool that allows anyone to invest in shares of real estate with the transparency and security of blockchain. It offers those looking to invest lower investment minimums, reduced transaction costs, and increased liquidity. All of these factors combine to create a platform that makes investing in real estate available for every type of person, regardless of wealth or status.
Meridio is an offshoot of Consensys, a global formation of companies looking to harness the power of Ethereum, meaning they have a very solid structure around them and a deep support network. However, co-founder Mo Shaikh admitted that much of the work he has to do is to teach “Blockchain 101” to those in the real estate industry. That is why experts at BlockchainDriven focus so much on consulting, advisement, and strategy. There is simply a lack of reliable and knowledgeable professionals in blockchain.
The power of Meridio is easy to see, and Shaikh also believes that Meridio has the power to be a reliable source of investment for many Americans.
“If you don’t have the money to buy your house or apartment, you can buy a piece of it, allowing you to build wealth. That’s exciting for middle-class Americans.” – Mo Shaikh, co-founder of Meridio
Praetorian is currently preparing for one of the most interesting ICOs that we have seen in 2018. Based on how much is raised during this period (their goal is $75 million), Praetorian will invest in a real estate portfolio, which their PAX Tokens represent a share of. Then, rather than cryptocurrencies being tied to an arbitrary value that fluctuates constantly, PAX Tokens will steadily grow and behave similarly to real estate prices, climbing over time without the wild spikes that are commonly seen in other cryptocurrencies.
The team at BlockchainDriven weighed in:
“Praetorian is doing something very interesting. They are entering blockchain and cryptocurrency through a totally unique angle, which is something that we advise our clients on daily. The space is currently very crowded, and the ICOs that blend in with the rest will not get funding. We do a lot of work consulting with our clients to make sure they are really utilizing the potential of blockchain in unique and innovative ways.” – Peter Borovykh, Blockchain Solutions Architect at BlockchainDriven
Where Blockchain and Real Estate are Headed
Meridio and Praetorian are two examples of how blockchain and the incredibly large real estate industry can have a positive relationship going forward. However, both of these companies focus on one sector of real estate than can be changed for the better thanks to blockchain. According to the experts at BlockchainDriven, there are a significant number of areas in the industry that blockchain can touch.
BlockchainDriven and their clients have been looking into several of these areas and have seen some promising results so far, so it is not out of the realm of possibilities that all of these crucial elements of the real estate industry could be revolutionized by blockchain in the coming months and years.
Due to its rather static nature and the traditionally high cost of entry, the real estate industry and especially real estate investment are prime contenders for one of the industries most impacted by blockchain technology.