Barclays and RBS Have Reduced the Real Estate Transaction Process Four Times: Who Benefits?

Recently, Barclays and the Royal Bank of Scotland, with the participation of enterprise software company R3, successfully tested a blockchain project that will speed up real estate transactions.

Is it already possible to talk about a breakthrough in the market? How will the traditional process of real estate transactions and mortgage issuance change? Why did banks, skeptical before, change their attitude toward blockchain? And what are the risks for private blockchain platforms? Experts answer.

As a result of the experiment, it turned out that blockchain is able to simplify and optimize the process of buying and selling real estate from more than three months to less than three weeks.

According to the project participants, the use of blockchain for this process can save the real estate market about $160 billion a year.

Blockchain application in the real estate sectorIn the real estate sector, blockchain can be used at all stages of value creation.

In the short term, blockchain can be used to transfer the price of real estate transactions using established cryptocurrencies, as well as through an initial coin offering.

A look at the futureSuch a rapid turnaround in banks' initiative to use blockchain can become a threat to blockchain projects that develop real estate solutions.

Even being partially integrated, blockchain will be able to assume such functions as the preparation of rental and sale contracts, the storage and analysis of the necessary data for real estate valuation, the monitoring of the performance of duties by service providers and other functions.

"Investigating further the potential outcomes from the widespread popularity of cryptocurrencies in combination with the vertical adoption of blockchain within the supply chain of the real estate industry predicts a whole world of new opportunities for the real estate market: from fractional tokenized ownership of properties to futuristic startup societies with decentralized governance."

"It's only a matter of time to see properties to be offered to a multi-ownership format which will become a reality with real estate e-registrests on the blockchain than paper contracts."