Blockchain, the technology that underlies bitcoin, is part of the conversation of potential technologies that can disrupt real estate. Despite the hype, it has been difficult to implement.
Be Smart: A property owner can issue blockchain-based tokens, which represent shares in the asset. Investors can then buy the tokens to become fractional owners of the underlying asset.
Use Cases: The technology make it easier for an investor holding a small stake in a property to liquidate his share; tokenizing properties to allow for well diversified real estate portfolios across a wide variety of assets.
Heard on the street: After initially boasting that issuing a €75 million loan using blockchain technology cut the time needed to complete the process from ‘days to hours’, BBVA Bank CEO Carlos Torres told elEconomista that: “The technology is not mature and has significant challenges”.