Well, real estate asset managers suffer from the exact same problem on an industrial scale. They spend 40,000 euros on collecting information in every single transaction. With 12,500 transactions a year this makes it a half a billion problem. Our Squad will share with you how we can solve this problem.
The only difference you are likely to discover is a sign or sticker claiming that the more expensive one has been produced “biologically”. However, does the retailer know if the lemon is actually biological? No, they do not. Our squad is going to tell you why the biggest industry in the world, the food sector, does not know the actual information and therefore the value of their products. The good news is, we have come up with a solution.
What do fraud with buildings and fraud with horsemeat have in common? They will both be disrupted by the solutions of the Advisory Blockchain Squad!
Disrupted you ask? Yes disrupted. We set out to think about how life cycle management using the blockchain could or should. Because this was too high level to come to concrete problem statements and solutions, we used the food supply chain and the asset management cases as instantiations of life cycle management use cases. Our goal is to improve the current situation and make it at least 10 times as good, hence a disruption.
OK – challenge accepted. To start making the current situation 10 times better we split up in two teams to work on a use case each: determine what the problem is for the real estate sector and the food sector. Of course you have to understand the current situation if you are to improve it and make sure it is at least 10 times better.
So – the current situation. Lucky us – it is terrible out there! Due diligence alone for asset managers costs the market about half a billion. And in the food sector we all know about the millions spent on certification which still can’t guarantee that the lemon I buy is indeed biological. Ouch. All because of non-transparency.
We went ahead to come up with a solution. In very generic terms the solutions for both life cycle management cases entails fixing the information flows so that all parties do business based on the same information. Because fraud and errors arise from asymmetry in the information on which decisions are based.
Making these solutions more specific we worked with the developers to implement the envisioned solution. The results is two proof of concepts. One in which real estate transactions are supported with a shared information repository on the blockchain, which real estate agents use to document and assess the value of their properties. The other a blockchain powered information flow from farm to fork so that the customer in the super market knows the real value of the product he buys.
The concept we proved is that blockchain can be leveraged to track object such as lemons or buildings through their lifecycle. As a result parties working together create the same single source of truth on which their business decisions are based. In turn, anyone profiting from lack of transparency loses his position: they are disrupted.