Challenges

The challenge for any new entrant into the emerging market is threefold.

• Ownership of a real estate asset by either a token or a blockchain wallet address is not supported by any existing property law and therefore is not legal nor trusted..

• Most market entrants remain in the ideation phase and are solving common problems in different ways. There are no open/industry standards around how players may interact with each other. If each player is defining “ownership” in a different way, it will be hard to establish the trust required to interoperate.

• While the real estate market is highly regulated, there are no legal precedents for how the law could be adapted to the blockchain space and how regulators may react to such actions.

Solving the above challenges are key to the growth of these technologies, particularly in ways that relate to shared definitions for concepts such as “digital ownership”.