Apr 12, 2019 12:28 UTC
Apr 12, 2019 at 12:28 UTC
Dubai Leading the Way in Blockchain, but There’s More to the Revolution
When the Dubai Blockchain Strategy was officially announced by His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, it signalled a shift in the way blockchain technology was seen by the rest of the world.
The aim of the Ruler of Dubai to see the city become the first in the world to be fully powered by blockchain technology by 2020 is a lofty goal, but one that perhaps isn’t all that unrealistic.
The Dubai government has identified the real estate sector as a primary factor in the success of their plans, and this particular industry falls under the remit of the Dubai Land Department.
There is already a blockchain system in place, using a secure database of all real estate contracts being carried out in the region, with the intention being that the switch to smart contracts will see lease registrations linked to utility accounts along with other property-related bills.
Transparent and Scalable
It’s believed that the implementation blockchain technology will provide the basis for transparent, secure, scalable, shared and immutable property data for all participants operating within the network, all in real time.
While Dubai is certainly among those leading the way, they aren’t alone in recognizing the potential of blockchain technology to the real estate sector.
We’ve seen numerous platforms aim to unlock the crowdfunding potential in real estate, taking the ability to invest in property from the wealthy few to a whole new class of investor.
Once upon a time, being able to invest in property was dependent on your status as an accredited investor. This usually involved a personal net worth of at least $1 million, or an annual income of over $200,000.
Investment for All
This all changed when startups like FundRise appeared, offering investors not only the opportunity to get involved in the real estate industry but to enjoy the benefits of quarterly dividends.
The minimum requirement to get involved? $500.
One of the more exciting aspects of the crowdfunding approach is the utilization of what is known as an Initial Loan Procurement (ILP), allowing both borrowers and lenders to participate in a loan agreement using smart contracts.
Although still in its early stages, we have seen some examples of this type of approach, including that of B11G, a commercial property project based outside Tallinn, Estonia.
One benefit of blockchain technology which will be universal is the speed in which transactions take place. It’s been touted that procedures that have taken up to 20 days previously could be completed within 30 minutes, or even less.
Blockchain is a worldwide phenomenon, and Dubai is leading the charge. The important tech reforms being put in place will see the customer benefit most of all, and that can only be a good thing.