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Will blockchain technology impact UK property market?
2 Mar 2020
Will blockchain technology impact the UK property market?
The way people buy and sell property has changed hugely in a very short space of time. The online property market, for example, is exploding. Following a lengthy period of austerity, it seems that more and more of us are getting back into buying and selling homes. In fact, technology is only likely to spur on our interest in property sales even further in the future.
This, it seems, is thanks to the emergence of blockchain. But what is blockchain, and what does it have to do with property sales? How can we expect agents and sellers to put blockchain to use in the years to come?
Blockchain is the future of online payment processing
Many people will already have heard of Bitcoin and other types of cryptocurrency. It all stems from a technology known as blockchain. Blockchain is a digital ledger, where transactions receive clear recording and where digital money is transferred. People ‘mine’ blockchain to dig up currency and to receive rewards in the process.
But how does this all apply to the UK property market? It is fairly simple. Many people choose to trade in crypto for the protection they receive in return. Crypto is private, instantaneous and free from regulation. Blockchain, too, is crucial to protecting transactions on either side of a negotiation.
How can blockchain protect property sales?
One of the best reasons for using blockchain’s ledger in property sales is for its transparency. All parties making transactions using the ledger will be able to clearly see what was paid and to whom. Data through blockchain is easy to find and to read. What’s more, as it is an automated process, there is no risk of counterfeiting.
Therefore, the chance of any back-and-forth on negotiations decreases hugely. This means that any disputes regarding payments, or any issues surrounding who agreed to what, can be resolved through the instant checking of a ledger.
What’s more, payments made through blockchain and crypto receive a fantastic amount of protection. Unlike traditional fiat money, cryptocurrency such as Bitcoin and Ethereum are impossible to counterfeit. This means that there are never any worries about illegal money changing hands.
Protecting individual architects and building projects
Those working in the industry who need project protection are starting to look more and more towards blockchain. For example, British architects working on new builds and private construction projects will need more reassurance that they will receive the payments and contract agreements they expect.
Unfortunately, data shows that there are still many people working in the property market who feel the system is vastly unfair. This, some argue, could be as a result of too much regulation. It may also fall to the fact that the UK property system has never been more complicated. Crucially, property developers, architects and those looking to buy and sell, largely look for a process that is completely painless.
Easy and approachable
People in the UK are always looking for quicker and easier ways to sell and buy property. The fact is, the property chain has always been fairly difficult to navigate. Therefore, any options where people in the chain can speed up or simplify processes are always likely to be welcome.
Bitcoin and blockchain technology are easier to adapt to than many people imagine. For example, many home users are able to simply head straight to the Bitcoin Profit website to start trading. Many property developers and those buying homes download digital wallets to start building up savings accounts to put towards their projects.
A long way to go?
While it’s clear that the UK property market could benefit from blockchain technology, there is still a long way to go. However, this isn’t necessarily a result of waning interest.
UK laws are still fairly uncertain on how to approach blockchain, as well as cryptocurrency in general. Therefore, it is unsurprising to see leading brands and professionals still dodging around the technology.
Until there is a firmer platform for UK investors and property merchants to work from, blockchain and crypto will still be working for the minority of people. However, it is clear that changes in the way people adopt and approach crypto are likely to come into force in the near future.
Following Brexit, property industry professionals are likely to be looking for firm reassurance in changing markets. Could blockchain security, recording and safe payment transfers do enough for the majority of home buyers and sellers? We will need to wait and see as time goes on.
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