How blockchain could boost the UAE property market
The best part about blockchain ledger technology is that it cannot be changed or deleted from history. It will always remain in the same sequence in which tokens were added.
An increasing number of governments have begun the process of implementing functional and legal frameworks to regulate blockchain-recorded tokens to improve their ledger system.
The biggest game changer with the introduction of blockchain in real estate contracts will be the possibility of fractional ownership. While startups such as SmartCrowd are already doing this in the UAE, there aren’t using blockchain technology.
However, with more education and simplification of the use of blockchain technology, there will be major disruption across industries.
Moreover, it will make public databases of ownership chains much more accessible, thereby reducing fraud and increasing accessibility, simplifying procedures as well as cutting down time frames.
While security token offerings are banned in major markets such as China and India, they are accepted in several other countries around the world.
UAE is already experimenting with blockchain technology and allowing unique innovative startups to experiment with the ideas in sandbox environments and special economic zones such as the DIFC.
Will the introduction of blockchain become part of the UAE’s long term blockchain strategy? More importantly, will the introduction come in time to boost the real estate market and advance the industry forward? We’ll be keeping watching the country’s blockchain implementation.