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.
Applications: A property owner can issue blockchain-based tokens, which represent shares in the asset. Investors can subsequently buy the tokens to become fractional owners of the underlying asset. This can potentially lessen the burden of liquidation and increase the ability to diversity across a wide variety of assets. It would also potentially open a historically constricted asset class to the general population.
Heard on the Street: Significant Reality Check: 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.”