Dear Readers,
The success exhibited by the Bitcoin blockchain in transferring and maintaining ownership of Bitcoin-denominated wealth has led many observers to theorize that blockchain technology can be used to easily transfer ownership of anything and everything. As a result, many in the “crypto” space tout transfer of ownership as one of blockchain’s key use cases.
Bitcoin is completely digital. It does not truly exist outside of the BTC blockchain (e.g., Bitcoin “derivatives” are not real Bitcoin). On top of that, no forces outside the blockchain and its nodes are required to enforce and defend ownership of Bitcoin. In short, transferring ownership of Bitcoin relies on the blockchain and literally nothing else.
A problem arises however when people attempt to use “blockchain” technology to impose ownership transfers onto the real world. Blockchain, which exists only in digital form, has no ability to enforce its demands onto real world objects and people. In other words, non-blockchain forces are always required in order to enforce results and consequences on the real world.
Nowhere is this more apparent than in the world of real estate.
