Setbacks of the Blockchain Applications in Real Estate
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Due to the potential of blockchain technology to transform the way real estate business is done, many investors and entrepreneurs are starting to understand the technology’s importance in the industry. However, it is still early in development, and full adoption of blockchain in real estate is still not possible. Here are some of the setbacks of the blockchain application in real estate.
The complexity of international regulations surrounding blockchain technology is a key issue that policymakers and the public need to address as the technology grows.
Some real estate investment platforms that operate on blockchains do not allow US residents to participate in their operations. The regulations surrounding the sale and trading of cryptocurrencies can be very strict, leading to additional administrative expenses. It is also easier for these platforms to prevent Americans from investing in their operations.
Not every country and state has recognized smart contracts as legally binding. It means that parties that may not have been aware of this may find themselves in a legal bind regarding contracts involving large sums of money.
Due to the complexity of the regulatory environment surrounding blockchain technology, many enterprises are not yet ready to adopt it. Despite the progress made in this area, more work is needed to make it easier for them to adopt it.
Lack of Blockchain Developers
Due to the increasing number of people working in the blockchain industry, there is a shortage of skilled and experienced individuals who can develop and manage the complex nature of peer-to-peer networks. It is why the industry must continue providing the necessary training and education to ensure its employees are equipped with the necessary knowledge and skills.
The number of jobs in the blockchain industry has increased by around 2000% since 2017. Having a sufficient number of developers is a concern for the industry.