Never heard of Blockchain? Get ready, as it could be about to transform the property market.
Given that blockchain can be described as a verifiable ledger which simplifies the trading of assets, it should come as no surprise that vendors of the technology are targeting the property market. Once you remember that we frequently describe buyers and vendors of property as being “in a chain”, then the introduction of new technology into a sector which is ripe for change should be expected and probably welcomed.
Add to this the antiquated processes of much of the legal conveyancing system, which is currently being overhauled by technological advances, and we could be at the threshold of something big.
Around the world, Land Registries are introducing blockchain technology. HM Land Registry recently launched Digital Street, a project to look at how various kinds of technology can change conveyancing and land registration in the future.
It could be argued that blockchain is a perfect fit for the property market. Every contract is recorded on an immutable ledger and automatically executed, dispensing with the need to plough through a written history of transactions and transfers. This would also impact on the time-consuming local authority searches checking covenants and planning permissions.
Clarity on mortgage limitations would also be provided, say the advocates of the new technology.
Whether you are an individual buying a new home or an investor, you cannot afford to ignore the arrival of the new technology. Also, wherever you are seeking a company involved in property management Cheltenham, Chorley or Chichester found at sites such as completepropertygroup.co.uk, you will not be immune to the influence of blockchain.
Proponents of the new toolset point to the fact that it is frictionless and improves transaction times within the legal process. Smart contracts are already in place, but blockchain may improve processes even more according to industry experts. Blockchain also promises greater security and improves the verification of contracts according to worldwide trials which have taken place in the last year.
The technology also offers the opportunity to invest in property and trade units of a portfolio, meaning investors can buy and sell on secure platforms such as those being explored in the financial and securities markets. This enhanced liquidity could revolutionize the property market.
It may be time to believe the hype.