This decentralized, distributed database could be the next big thing. Blockchain is a

digital ledger that enables transactions made with bitcoin, or another cryptocurrency, to

be recorded chronologically and publicly—creating a secure list of records, or blocks. Mass

adoption is a few years away, but Deloitte predicts that blockchain could be a game

changer in real estate:

Blockchain is built on the principles drawn from cryptography and peer-to-peer

networking. It allows unique monetary data to be exchanged via a distributed ledger (a

record book of all transactions). Blockchain is a technology that allows people who don’t

know each other to trust a shared record of events. This shared record, or ledger, is

distributed to all participants in a network who use their computers to validate

transactions and thus remove the need for a trusted third party to intermediate. A copy of

the entire blockchain is available to all participants in the network and transactions on the

blockchain are time stamped, making it useful for tracking and verifying information.

A blockchain represents a total shift away from the traditional ways of doing things. It

places trust and authority in a distributed network rather than in a powerful central

institution. In a blockchain based world of transactions, there is no need for the

middlemen of finance — banks, governments, insurers, brokers, notaries and even paper

currency. The blockchain takes this part of the transaction over from the professionals. It

allows unique monetary data to be exchanged via a distributed ledger. The entire history of

these transactions could be followed through the blockchain and is available for the

public, so the blockchain provides full transparency.

Think of a house or piece of land as a “coin.” This coin could be exchanged using digital

currency on a blockchain. Besides providing total transparency, blockchain also would

decrease the risk of fraud and speed up the process of buying or selling a property.