How Commercial Real Estate Can Leverage Blockchain
- Nov 17, 2023
Blockchain technology is reshaping industries and transactions.
Watch our two-minute video to understand how blockchain can help:
- Create a more secure means of sharing transaction data.
- Decrease the time needed for data reconciliation.
- Reduce the likelihood of cyberattacks.
Interested in learning more about how you can best integrate blockchain into your organization?
Blockchain is a versatile technology with applications like real-world asset transactions, supply chain management, and cryptocurrency.
How does blockchain work?
Each participant, or node, holds a complete ledger copy of shared information, such as transactions.
A consensus mechanism creates an agreement among nodes as to which transactions, or blocks, are added to the ledger.
Blocks of data in the ledger are chained together, with each block referencing the previous block, so historical transactions cannot be altered.
Each block in the chain has a ‘hash’ — a unique identifier, much like a fingerprint. If any data in the block is altered, the hash will change, alerting the network that someone has tried to tamper with the data. Once data is committed to the blockchain, it cannot be altered. This is known as immutability.
Transactions are secured by public key/private key architecture, a method of encrypting or signing data with two different keys. Data can’t be accessed without the private key.
Why use blockchain technology?
Since there is no single point of failure, blockchain technology can enhance security, reduce likelihood of cyber-attacks, and assure continuity of the ecosystem if node failure or attack doesn’t reach certain thresholds.
As a decentralized peer-to-peer data structure, blockchain allows for real- or near real-time sharing of transactional ledgers, eliminating or decreasing intermediaries. This reduces time needed for data reconciliation. For example, cross-border payment settlement time can shrink from days to seconds.
Blockchain technology is reshaping industries and revolutionizing transactions. Whether you're a business leader or a curious explorer, blockchain's potential is too significant to ignore.
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Chris Brodersen is a Managing Director in the firm's Business Advisory Group and has nearly 40 years of cross-industry experience in applying blockchain technology and digital asset solutions.
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