The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
UPCOMING EVENT - LAND LEASE DEVELOPMENT SUMMIT 10 DAYS TO GO
10 DAYS TO GO - LAND LEASE DEVELOPMENT SUMMIT
REGISTER NOWREGISTER
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
OtherAdam Di MarcoTue 07 Nov 17

WTF Blockchain! Who Are You and What Do You Mean for Property?

TUD+ MEMBER CONTENT
iStock-664731514
SHARE
print
Print

I have been obsessing about the power of blockchain technology for almost a year now.

Despite having a thriving digital media business, it kills me that I missed out on the "internet boom" of the early 2000s.

It was a free-for-all for anyone and everyone that could use a laptop, some basic code and the ability to put a product in front of people.

Fortunes have been made (and lost!) and the internet has evolved from the frontier of nerds with bad odour to a ubiquitous, invisible force that permeates everything on this planet.

And so, too, will blockchain technology.
WTF is Blockchain?

So, let’s start at the beginning. Does anyone actually know what blockchain technology is?

It’s astounding how many people frequently use the term "blockchain" without truly understanding what makes up the underlying technology or what its likely impact will be.

It reached breaking point recently when I attended a blockchain conference and met an "expert" who vomited buzzwords all over me yet failed to articulate any real insight or understanding.

So, what exactly is blockchain technology?

Jamie Skella, founder of

Horizon State -- a Melbourne-based blockchain start-up that is disrupting the way we vote -- explains it very simply:

His article, A Blockchain Explanation Your Parents Could Understand, provides everything you need to know for a deeper, practical understanding of blockchain.

But, for the purposes of my

article, I’ll assume that a shared record book is enough to keep us going.

So, Why Is It Important?

Well, this "shared record book" is important because it allows value

to be exchanged between parties in a trusted way.

Basically, every computer in the system that stores or records the exchange of this "value" provides authentication (trust) that the transfer has occurred.

Beyond the shared record book, blockchain technology will empower a whole new era of agreement-making through what has been coined as "smart contracts".

In short, a smart contract will allow parties to enter into agreements that are stored on the shared record book and contain who, what, when, why and how a transaction occurs.

All levels and layers of industry, government and society will be impacted by this technology.

What Does That Mean For Australia’s Property Sector?

In Australia, the property industry is primed for a big shake-up.

As the largest sector in the economy and about 13 per cent of our GDP, the amount of value that is exchanged is immense and unrivalled.

I’ve outlined two examples of how blockchain technology may be applied in the property sector in Australia:

Developer Contributions for THE local community

In every new development project, property developers are required to pay financial contributions to local authorities.

In Brisbane, for example, a residential development incurs infrastructure charges of $21,000 for every one and two-bedroom apartment and $28,000 for every three-bedroom apartment. These funds are paid on completion of the project and used by local councils to upgrade roads, services, parks and other essential services.

It is often promoted by councils that the funds from that project are being used in the specific local community that the project is being developed.

Enter blockchain.

Rather than the funds being paid to a central point in the council and allocated based on the discretion of politicians, blockchain technology can ensure that those actual

funds are used in that actual community.

Blockchain will be a game-changer for accountability of government expenditure! Look out.

Real-Time Development Approvals

Stay with me here, I haven’t consumed mind-altering drugs...

Coupled with powerful design technology, blockchain could empower councils to run real-time development approval processes whereby developers submit proposals in coordination the local community to allow real-time amendments to be incorporated with a voting system in an event-style format.

Following a period of public notification, residents who care enough to participate can show up and contribute to the outcome of the development in a participatory and immediate way.  

What Next?

Blockchain is very much in its infancy as a technology. We’re in the mid-to-late-90s in the context of the internet’s equivalent trajectory.

The pioneers -- like Jamie Skella, above -- are forging their paths into the unknown and may well be the Bill Gates, Steve Jobs or Mark Zuckerberg’s of this next era, the so-called Fourth Industrial Revolution.

So, what can you do? Very simply, get your head around it!

Try to understand the underlying technology, but don’t labour too much. Instead, try to understand the impact that the technologies will have on the future of society and business.

Often people have very binary views on technology. You are either "into it" or not.

Well, like the internet, we’ll all be "into" blockchain technology in the future. It’s just a question of whether we want to make the most of it.


Adam Di Marco is the founder and publisher of The Urban Developer. He is also the managing director of Di Marco Group, a Brisbane-based boutique property development business and executive chairman of CityShape, a disruptive big-data start-up for the property industry.

OtherResidentialInfrastructureIndustrialAustraliaTechnologyOpinion
AUTHOR
Adam Di Marco
"Adam Di Marco is the Founder and Publisher of The Urban Developer. He is also the Managing Director of Di Marco Group, a Brisbane-based boutique property development business and Executive Chairman of CityShape, a disruptive big-data start-up for the property industry."
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Starchitect Ivan Harbour on the Power of Small Spaces

Taryn Paris
6 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
View All >
Office

Top 5 Office A-REITS in 2025

Shravanth Reddy
Sponsored

Getting Accommodation Right, from Games to Legacy

The Devwest twins are planning their next project, a $110 million office building in Perth with WA Government tenants already lined up as part of public sector reforms.
Office

Devwest Twins Plot $110m Office Tower in Perth CBD

Renee McKeown
The WA Government plans to tenant the now-on-exhibition 11-storey scheme at Northbridge in the heart of the capital...
LATEST
Office

Top 5 Office A-REITS in 2025

Shravanth Reddy
3 Min
Infrastructure

Getting Accommodation Right, from Games to Legacy

7 Min
The Devwest twins are planning their next project, a $110 million office building in Perth with WA Government tenants already lined up as part of public sector reforms.
Office

Devwest Twins Plot $110m Office Tower in Perth CBD

Renee McKeown
2 Min
Gold Coast Light Rail Scrapping hero
Infrastructure

Light Rail Axing Won’t Slow Southern Gold Coast Surge

Phil Bartsch
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/wtf-blockchain-who-are-you-and-what-do-you-mean-for-property