Cambridge Innovation Center becomes the first company to use blockchain technology for lease contracts with the help of Deloitte Netherlands.
Deloitte Netherlands, Cambridge Innovation Center (CIC) and the city of Rotterdam are working on a first blockchain-based real estate app for recording lease deals on the distributed ledger.
The project will enable startups in the CIC network to conclude binding lease contracts easier and faster. Deloitte also plans to manage rental payments via blockchain.
“The next step will be monitoring the rental payments. By implementing additional block chain applications in the real estate industry transaction times and costs can be reduced further,” said Jan Willem Santing, manager of Deloitte Real Estate. “Furthermore it enables decision makers to use data analysis for making future investment decisions on selling, buying and constructing real estate.”
The CIC is the biggest network of startups and innovation units of large companies established in 1999 by Tim Rowe. Last year, the organization expended to Rotterdam with its first office outside the United States. With a new 140,000 square-foot space for up to 500 startups, the CIC could have a significant influence on the blockchain use in the city.
The project is part of the region’s Roadmap Next Economy, an initiative of 23 municipalities in the metropolitan region Rotterdam to enable the development of pilot disruptive technology such as blockchain.
“Experimenting with a potentially disruptive technology such as blockchain in an early stage enables ‘the participants’ to better assess the impact of this technology,” Deloitte said. “With this project, the city of Rotterdam is taking a major step forward by applying the blockchain as well as by offering the blockchain technology to third parties.”
To create blockchain apps shortly, Deloitte will begin a co-creation process together with its clients and partners. Being a partner of the municipality of Rotterdam, Deloitte has been involved from the beginning with the introduction of CIC in the Netherlands.
The consultancy firm is confident the payment industry will look different in the next few years as a result of ongoing technological developments. As the company said in its recent report, traditional institutions are now facing real competition from innovative startups.
Earlier this year, Deloitte launched a blockchain lab in Dublin as part of the firm’s fintech initiative ‘The Grid’ aimed at promotion of innovative trends affecting the financial services industry. The team at Deloitte Lab will be working in partnership with specialist teams in other member companies to design blockchain solutions for financial services clients.
Not long ago, Deloitte invested in SETL, a blockchain startup which is now working with Deloitte on a contactless card using blockchain to enable instant settlement of retail payments.
Meanwhile, there have been reports that Georgia is also planning to launch a blockchain system next year to allow citizens get information about real estate. Minister of Justice Tea Tsulukiani has full technical compatibility to introduce such application.