Think about all the hype in the last few years. BlockChain, BlockChain, BlockChanz, BlockChain, Block everything. And yes, I will admit I have been part of that hype machine, as evidenced below with just a few of the articles I have posted.
If you are still paying any attention the market has certainly shrunk substantially from its peak so it has been rather quiet. Also, there is the sentiment from that same community that they are in the early “build” phase of what the BlockChain will eventually become. In their minds, it will change everything we know about commercial real estate and maybe so but I have a fundamental issue with the BlockChain.
By definition: A blockchain is a growing list of records, called blocks, which are linked using cryptography. Each block contains a cryptographic hash of the previous block a timestamp, and transaction data (generally represented as a Merkle tree).
By design, a blockchain is resistant to modification of the data. It is “an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. Source- Blockgeeks
I could, of course, go on and on explaining the why how and what’s of the blockchain for commercial real estate. At the very core of blockchain is the security of data. It is that unquestioned data security I have an issue with.
Look at any source that covers anything blockchain related and what do you see? HACKS. In other words, people somewhere somehow breaking that unquestioned security and doing exactly what all the blockchain people tell you can’t be done.
So, I ask why then use blockchain?
To this point commercial real estate has said, no thanks, to any and all. How many times do I have to repeat myself? “What happens when all the people with all the money and all the buildings show up?”
What happens when they decide that blockchain is a solution worth using?
What happens if they don’t?
I don’t think they should because it will be just a waste of their time.
By definition: A quantum computer harnesses some of the almost-mystical phenomena of quantum mechanics to deliver huge leaps forward in processing power. Quantum machines promise to outstrip even the most capable of today’s—and tomorrow’s—supercomputers. Source- MIT
“In 2015, Google and NASA reported that their new 1097-qubit D-Wave quantum computer had solved an optimization problem in a few seconds. That’s 100 million times faster than a regular computer chip. They claimed that a problem their D-Wave 2X machine processed inside one second would take a classical computer 10,000 years to solve. Source- Quantumly
So if we are on the cusp (did you notice the year, 2015) of quantum computing and we will be able to process data at 100 million times faster then how long would it take to hack a simple blockchain? We are doing it now with the technology and processing speed 100 million times less.
What’s the point of BlockChain again? Security? Transparency? Moving money to other people? Moving control of data to other people. The people that own the “blockchain?” Maybe probably and why do you think that makes any sense?
It makes no sense at all.
I said this a million times, “there are some of the smartest and most brilliant people on the planet involved in #CRE.”
What makes you think they have not already figured all this out?
Who do you think inspired this article in the first place?
So, Don’t Waste Your Time With BlockChain For #CRE. The Technology Is Already Old And Useless!
+1 Thanks JP for the inspiration. See you again soon.
+1+1 Does this need to be that complicated? Nope, moving on to the next!