CoreNet Global New York City Chapter (CoreNet NYC) is pleased to announce that its Programs Committee recently hosted the presentation, “Is Real Estate Ready for Blockchain?” at the Grand Hyatt in New York City, which featured expert insight from Deloitte Consulting LLP’s Manager of Real Estate Technology, Kevin Shtofman.
Shtofman began with a basic overview on blockchain.Blockchain, well known as the technology powering Bitcoin, is a digitized, distributed ledger that immutably records and shares information. Industry players are realizing blockchain-based smart contracts can transform core CRE operations, such as property transactions, and over time may have a broader impact if linked to public utility services such as smart parking, waste, water and energy billing. On the horizon, this could enable data-driven city management.
The Gateway to Transparency
The commercial real estate industry has long valued confidentiality as the key to keeping a competitive edge. However, Shtofman emphasized the importance of becoming more transparent and connected in an ever-globalizing world, and shared how blockchain can facilitate this transparency. Because a certain, verifiable number of transactions occur, virtually in real-time on blockchain, there is a public history that ensures accountability and trustworthiness, mitigating risk of fraud or abuse by being censorship resistant. Also, blockchain’s ability to connect two parties to transact directly eliminates the need for a trusted third party.“If all contract elements were written into a blockchain where all the issues are transparent, employees could focus on more complex issues, resulting in higher employee engagement and retention.” said Shtofman.
Inevitability of Blockchain, the World’s Ledger
Shtofman informed the audience that, according to a 2015 World Economic Forum survey of 800 executives and information and communications technology sector experts, 57.9 percent of the respondents believed that 10 percent of the global GDP information will be stored on blockchain technology by 2025.
Shtofman also noted, “Blockchain is an exciting new technology and it’s coming for real estate,
whether the industry is ready or not.”
About Kevin Shtofman
Kevin Shtofman is a manager in the Real Estate practice of Deloitte Consulting LLP. Kevin has more than 14 years of combined experience providing strategic, financial, accounting, business improvement, and technology services to clients in the real estate industry. Kevin is highly experienced in providing operational and systems integration services to owners, operators, developers, and construction servicers of real estate. He is a recognized leader in providing strategic planning, business process improvement, systems integration, solution implementation, merger integration, asset management, and program/project management services.
About CoreNet Global New York City Chapter
CoreNet Global New York City Chapter’s mission is to advance innovation and professional development for the corporate real estate sector, and to serve as a thought leader and forum for current industry issues. The organization’s more than 800 members represent corporate end-users and service providers from New York’s largest publicly-held companies at the forefront of real estate planning, development and innovation, including Fortune 500 companies generating over $1 billion in annual revenue. For more information about the CoreNet Global New York City Chapter, visit http://corenetnyc.org.
