Fort Worth, TX, developer Serene Country Homes Group will use digital currency platform blockchain to fund the construction of its 2,385-home Sendera Ranch community, located north of the city, The Dallas Morning News reported.
The builder is working with a Chinese company to establish the digital asset program. It says the Real Estate Token (RET) ecosystem will help it build the community faster.
- The $655 million project is targeted to begin construction by the end of 2018. Serene launched an Initial Coin Offering for its RET digital asset token May 19.
A blockchain is a secure, decentralized register of transactions that allows multiple parties to conduct monetary transfers and other business without the need for a bank or other financial third party, explained Matthias Geipel, a management consultant with Arup. The most widely known blockchain is the digital currency Bitcoin.
In providing real-time transactional information and materials tracking throughout the supply chain, according to Geipel, construction companies can improve transparency and streamline operations.
Smart contracts are one way blockchains can be used in construction, according to construction consultant Dave Hughes. Tracking work on an “if/then” transactional principle or allowing for staggered transactions for high-value orders and then storing all that information with the blockchain could make transactions faster and more direct.
Serene’s move comes as blockchain gains traction in industries beyond construction. For example, Foxconn’s FnConn subsidiary business and Chinese online lending platform Dianrong are offering blockchain-based loans to small manufacturers through a new supply-chain financing platform, according to Supply Chain Dive. IBM recently rolled out a blockchain business accelerator to guide companies looking to implement digital-asset technology. And Wal-Mart is exploring blockchain to track some produce- and pork-related transactions through shared digital ledgers, Retail Dive reported.