How Blockchain will build the Real Estate Market

Recently, the Enterprise Ethereum Alliance released a set of “guidelines” to use for the development of next-generation real estate sales. According to Computer World, this set of guides will explain what to do if, say, one wants to buy pieces of real estate, or one wants to use tokens, and how a secure market can make use of those tokens used to buy properties in the right way.

The document’s creation was spearheaded by the Real Estate Special Interest Group, a gathering of individuals within the larger group. It was created a year ago and has managed to grow to include 50 member companies within the year. Some of its members include blockchain software developers Applicature, Blockapps, and ConsenSys.

Online blockchain-based real estate apps Propy and Blockimmo also ally themselves with the EEA. Of these two, Blockimmo has a recent activity in online real estate. It managed to list its first tokenized property, an apartment building with a restaurant that’s priced at $14.8 million. Bastiaan Don, chair of EEA’s Real Estate SIG, is connected with and began developing Blockimmo’s marketplace a year ago.

Blockchain may not only be responsible for creating new real estate markets; they may also become markets themselves. A large chunk of worldwide spending on new blockchain networks came up to $2.9 billion, according to Tech Central. That came mostly from the financial sector, particularly from companies involved in banking, insurance industries, and securities and investments.

Jessica Goepfert, program vice president for customer insights and analysis at the International Data Corporation (IDC), said that the use cases for blockchain are developing as rapidly as the technologies that use it. Companies who have since implemented an improved form are US market chains Walmart and Sam’s Club as well as JP Morgan Chase, who have developed a cryptocurrency coin.

The IDC report is expecting a greater use for blockchain as well as growth in spending for it. The date for this growth is pegged to be at 2022, based on the compound annual growth rate of 76% and the total budget spending which is believed to reach $12.4 billion by that year. The US is also expected to lead the world in spending on blockchain-based software.

Blockchain may become an indispensable software by the time the market is developed and countries and corporations have spent enough to research into the technology. By this time already, blockchain has become an irremovable part of doing business online.