PETALING JAYA: The rise of cryptocurrencies such as Bitcoin has taken the globe by storm and has affected the traditional financial landscape, observed FundPlaces Pte. Ltd co-founder Tan Kok Keong.

He said that the gradual transitioning to the usage of bitcoins has also disrupted businesses which have seen many taking the proactive role and adopted the currency.

“Bitcoins comes from blockchain. It is the under-lining technology that delivers and provides available adaptation of crypto-currency,” he said during the 27th National Real Estate Convention (NREC).

Tan also added that the significance of cryptos has also affected the the real estate industry as well.

“The three main reasons behind the changes is the move towards a sharing economy, the social change in consumers that command to be empowered, and also the adaptation of the technology,” he added.

He said that the implementation of technology into businesses has already taken place with online services such as Airbnb which shaped hospitality, and Uber, a ride sharing app which is rethinking transportation.

However, in the field of raising capital, he said that blockchain can play a significant role in these three areas:

Crowdfunding
There’s a lot of talk on crowdfunding on established markets such as the US and Australia where crowdfunding is more commonly known.

Traditionally, he said that retail investors are short of alternative investments and available choices but with the emergence of an alternative funding platform, the investment opportunities have been opened up.

The desire for empowerment for consumers
With traditional currency, the options to invest is somewhat scarce but due to the alternative platforms, consumers would have another way to invest their money.

The adaptation of blockchain into the mainstream industry
Sending your money overseas used to be a bother. Blockchain simplified the process for you, making the option more preferable than the old methods.

Blockchain is essentially an electronic ledger that is continuously growing with new records. Known as blocks, which are linked and secured using cryptography, each typically contains a cryptographic hash of the previous block, a timestamp and transaction data.

By design, a blockchain is inherently resistant to modification of the data. It is considered to be an open, distributed ledger that can record transactions between two parties efficiently and in a verifiable and permanent way.

To apply the activation of blockchain in regards to the property sector, three areas can be looked up:

1. Land titles
In Commonwealth nations, where land titles are quite clear most of the time, having a centralised database in a land office is no different from having it online. With the blockchain being secure from any fraudulent attempts due to its transparent nature, it can be utilised to ensure that it is clear.

2. Financial marketplaces
Bitcoin allows for developers to sell their products using bitcoin as an alternative paying method compared to the traditional financing.

3. End to end development
From a developer, from the beginning of a project to the handing over of a project to a purchaser, you can load all the documents online, and you can grant access to all parties that need access and do away with all the paperwork.