What is the Blockchain Network again?
With blockchain, we can imagine the world in which contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world, every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared. Source: HBR
By this point in time, most of #CRE should be getting this.
But there have to be questions. How can there not be questions? I have questions? I also have some answers.
Think about the network we use now. What does that look like? Do you understand what I am asking?
Are you having a hard time figuring out what that is? Do you know why?
At this point, it’s everything everywhere. Let me help you here.
Think about a single buy and sell transaction. Where does that transaction live?
It lives in many places. None of which has any of the elements that are even remotely close to the environment provided by the blockchain network.
Let me remind you again.
Contracts are embedded in digital code and stored in transparent, shared databases, where they are protected from deletion, tampering, and revision. In this world, every agreement, every process, every task, and every payment would have a digital record and signature that could be identified, validated, stored, and shared.
Where does that buy sell transaction live today?
The title company? Your local MLS forms database? In Dropbox? In your downloads in PDF form? None of the above?
Wait, your company has a “deal room” that stores everything. Or not?
Alright, I think you are getting the point.
How about this? What is the actual process of creating that transaction? How many steps? How much time?
Maybe the biggest question, at what cost?
Do you have any idea at all? I’m not saying I do completely.
What if the blockchain network provides all of that?
Actually, it does. Do you see how important that is?
Let me help jump you way ahead of most of #CRE.
What should you be looking for?
The first thing should be speed. The speed of the transaction being processed and recorded on the blockchain.
Wha’s a good number? Right now it’s in the ballpark of twenty minutes. Does that seem like a long time?
How long does it take to verify all the transaction data and record it God knows where today? A day? A couple of days? Probably a lot longer than that if you’re honest about the entire process.
But, the current blockchain network twenty-minute time frame is not good enough in my opinion. Should it be instantaneous? Yes, it should. It will get there and it will happen a lot faster than you think.
One more time.
How long does it take today and in what secure verified digital environment? Uh, a day or two or three and not secure at all!
Why is speed important again?
How about payments? Yeah, collecting the rent. How can you track that process now?
Yes, yes there are programs that exist today for that. But what if all the data was digitally verified and automated?
That means the rent is collected and put in the bank how and when?
Secure verified and millisecond fast.
Hmmm, #CRE = Providing space and getting paid to do so.
How about getting paid like that?
How many building owners would sign up for that?
None? Really? None?
By the way, one of the best use cases for blockchain and #CRE is asset management.
Do I need to explain that one?
I think not.
Let me sum this up.
Secure digital cost effective verified transactions.
Secure digital cost effective verified transactions and instantanous paid rent.
And all the above applied to asset management.
I did ask at the beginning, How Will The “Blockchain Network” Compare?
What do we have now?
I’m not sure that I even have a complete answer to that.
How about you?
+1 Remember blockchain “changes the model.”
+1+1 How? Democratization: the act of making something accessible to everyone.
“the democratization of information through technology”