Will Blockchain Technology Revolutionize Real Estate?
Q: Bitcoin is all the rage now. Do you think blockchain technology will revolutionize real estate like many people are predicting? Sam, Cambridge, MA
A: There has been a lot of hype recently regarding Bitcoin and its underlying blockchain technology because a lot of money has been spent speculating on bitcoin. To your question–I’ll point you to the first and second rule of technology from a fellow named Bill Gates who knows a thing or two about technology:
“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.”
Unfortunately, real estate is not an efficient operation in most places in the US so technology applied to it without significant underlying changes will likely magnify the inefficiency. Title records are not centralized and there is a lack of widespread digitization in general in real estate. These entrenched factors make me skeptical that blockchain technology will revolutionize residential real estate anytime soon, but anything is possible.
Thanks for your question, Sam. For more real estate information and tips visit my blog at geraldlucas.com.