Canada and blockchain
Blockchain is essentially an online ledger that manages recorded transactions. What makes it innovative is that the ledger is distributed, meaning anyone connected to the network has a copy of it. The implications of this in commercial real estate are numerous, from purchasing to leasing to management.
Technology and real estate experts alike say blockchain technology has an important place in the commercial real estate market with its ability to streamline processes, reduce fraud and cut costs (and middlemen).
Transaction fees and services in both Canada’s residential and commercial real estate spaces – such as legal costs, land-transfer taxes and real estate commissions – make up about 2 per cent of Canada’s economy,
High-cost processing fees are also a challenge in Canada’s global commercial real estate transactions, which could be reduced through the adoption of blockchain.