Summit County's Most Trusted Real Estate Advocates
Paris, July 1, 2019
by Garratt Hasenstab
As an elected US Regional Chairman of the global board of the Foundation for International Blockchain Real Estate Expertise, I am very proud to present our first global industry report on the state of progress of the application of Blockchain technologies within the rapidly growing Real Estate and Proptech industry.
First of all, cheers to all of my colleagues at FIBREE who helped produce this groundbreaking research into the impact of blockchain on the real estate industry in 2019. Our industry is at the center of of an unprecedented technological revolution—from the way we invest in real estate now through security token offerings, to the way we finance real estate development through crowdfunding and fractionalization, to the global capital pool and 24/7 exchange that emerges with blockchain-based digital assets—we are crafting the real estate industry of the future now! What an amazing time to be an explorer and pioneer in this new era of blockchain & real estate!
FIBREE—the Foundation for International Blockchain Real Estate Expertise, presents the first ever global industry report on how blockchain technology is being implemented in the real estate industry, presented by FIBREE on July 1st at MIPIM PropTech in Paris. Blockchain for real estate has shown massive growth over the last couple of years, and the level of engagement by the real estate industry is still growing and is presenting as an evolution and a revolution in real estate.
This incredibly detailed Industry Report highlights that blockchain is not just a local phenomenon—the action is happening on every continent and there are multiple hot-spots where activity is gaining scale and adoption throughout the world. The US is by far the nation with the most blockchain initiatives for real estate. Despite its astounding potential, blockchain as a real estate tool is still a relatively nascent technology in many local markets, however the number of ‘blockchain for real estate’-initiatives has been increasing quite rapidly since 2016. FIBREE gathered and analyzed information about more than 500 existing products and asked its 55 regional chairs about the state of the industry in their markets.
“We see this as a milestone for FIBREE to contribute to the market with a realistic perspective on the impact of blockchain for real estate. Never before has such a global survey has been completed. All of this research and development was only possible thanks to the great enthusiasm and commitment of the FIBREE participants and the support of our sponsors and partners,” said Achim Jedelsky, President of FIBREE.
Among the expansive global data, three major use cases have been identified worldwide, resulting in a global picture that includes (1) solutions for real estate transactions, (2) real estate tokenization and (3) building decentralized infrastructure. The various real estate solutions show the variety in which added value can be created when implementing blockchain solutions. Many of the businesses and products analyzed are still in the very early phases of development and market deployment, so the real added value for the market still needs to be proven through valid use-cases, trials and market tests, however the existing enterprise value that has been proved cannot be underestimated.
The current state of the industry also shows that there are still many challenges to be targeted. Greater education to increase awareness in the market is a requirement broadly addressed. Clearer understanding and a more strategic approach to digitizing real estate processes must help improving the chances for strong use-cases and initiatives to find development and/or funding partners. Compliance to local regulations and the scalable deployment of distributed ledger technology is another frequently heard challenge, although this seems not to be an issue for every type of enterprise of product.
Most of the activity is being deployed by startups and, in some countries also by governments or large real estate corporations. Most of the commercial real estate market-movers have taken notice of the value of blockchain, but are slow in embracing these new solutions. The residential real estate industry segment is also shown to slowly be embracing the opportunities that present efficient value transfer of property through blockchain-based real estate exchange platforms.
FIBREE thinks in many regional markets the hype around blockchain is over and the real enterprise implementation is well underway. The market understands that the true potential of new technologies such as blockchain can’t be fully unlocked, as long as information-exchange is mostly paper based, and only partially digital. But the industry is also very fragmented and stretches around the world, with each nation or municipality developing its own interests in this burgeoning new world of real estate.
Lots of information gets lost between the successive links in the chain. Many companies think the costs of digitizing for single parties will outweigh the benefits in the short term. As we see in other industries, FIBREE believes a consortium approach can make the difference to such issues. This is where FIBREE can add value, by connecting professionals in local meetups to exchange their expertise and discuss best practices. When appropriate this can lead to the starting of local working groups, to jointly discover and develop next steps that will make a difference in the market.
As the Denver & Rocky Mountain Region Chairman of FIBREE, I am kicking off the Colorado Blockchain Resource Meetup for all real estate and technology professionals, as well as any other industry participants, that are interested in getting together with like-minded professionals in order to learn and share expertise regarding this consistently advancing technology affecting nearly every facet of our industry.
Please feel free to reach out to me directly with interest in this Meetup, questions about our Global Industry Report or with any other questions you may have at: Garratt.Hasenstab@fibree.org
FIBREE—the Foundation for International Blockchain Real Estate Expertise, founded in July 2018 as a non-profit organization. FIBREE is a worldwide expanding network to find out where Blockchain is leading the real estate markets. FIBREE aims to be the leading international network for exchanging knowledge between the real estate industry, the IT sector and blockchain technology. Within 12 months it has grown into a global network of 55 regional chairs with 40 locations in 25 countries on five continents. FIBREE brings together already more than 5.000 real estate professionals, blockchain specialists, legal experts and researchers from around the world to exchange their expertise and best practices. FIBREE’s mission is to create a realistic expectation pattern that enables the real estate market to gradually discover and exploit the true potential of Blockchain technology.
About Garratt Hasenstab
• Founder | Resource Blockchain™
• President | The Mountain Life Companies
• Regional Chairman | The Foundation for International Blockchain Real Estate Expertise
• Member of Expert Council—Forbes Real Estate Council
• Founder & Director | Verdigris Group
• Certified Blockchain Expert™ (CBE)
• Certified Smart Contract Developer™ (CSCD)
• UC Berkeley Blockchain Professional Certification
• UC Berkeley Bitcoin and Cryptocurrencies Professional Certification
• IBM Blockchain Essentials Credential
• Silicon Valley Digital Marketing Institute Professional Certification
My professional passion is to deploy my continuously evolving expertise in distributed ledger technology to its highest and best use through my deep experience in real estate development, operations, marketing and management in order to contribute to the adoption and scaling of Proptech and Fintech DLT solutions that advance greater efficiency, transparency, liquidity, and decentralized value transfer.
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