“Blockchain has laid the foundation for the real estate industry, and if this technology can increase liquidity and reduce costs, it will be able to remove some significant barriers for investors.”
This is said by deputy chief executive of Savills Vietnam Troy Griffiths, reported in the report “Blockchain and the Influence Can Change the Real Estate Market,” announced by the company on Jan. 30.
According to Troy Griffiths, Blockchain is understood to be a securely encrypted database system behind the Bitcoin virtual currency. Blockchain is a technology recognized with the power to innovate real estate.
In the world, land registration agencies are now interested in the Blockchain system because they are skeptical that the system could allow the transfer of ‘almost immediate’ property ownership in a safe manner.
Troy Griffiths believes that “blockchain is capable of revolutionizing land transfers.” The number of trials similar to blockchain is increasing throughout the world. The Ukrainian government, for example, is hoping to attract foreign investors by adopting blockchain technology to replace paper processes. Investors will be able to conduct online transactions using smart contracts.
This technology is based on Ethereum blockchain – the second most valuable application after the technology used for Bitcoin. Other similar projects are underway in Honduras and the Republic of Georgia.
“If this technology is applied for land registration purposes, there may be some benefits,” he said, adding that the automatic contract processing process meant cutting costs. For example, identity records will be anti-theft, and the transaction time is reduced because the transaction can be a complete digital transaction, “Savills said.
As a result, if direct real estate assets can be merged and / or if the income stream derived directly from the property is detached, Blockchain technology will also reduce the congestion of the head. real estate; Obstacles between real and aggregate securities started to break down, making the investment liquid, transparent and possible to trade immediately.
“Blockchain is slowly emerging, but Vietnam is slowly adopting this new technology,” Troy Griffiths said, “but that will soon change, I believe we are in a great position. To take advantage of this new digital age. ”