Blockchain Tracker: Getting Into The Real Estate Business

Blockchain technology has made its name in the banking sector but has also found its way into the health care world, the music industry and even the U.S. presidential election. In an interview published on PYMNTS.com, Lewis Cohen discusses the case for its use in the real estate sector.

Ownership of real estate for centuries has been tracked at the local level, and real estate transfers are some of the most complicated and antiquated of any asset type out there.

The good news: Real estate is a near-perfect asset class to see efficiencies through deployment of blockchain technology. The other news: It will take years and years to develop common standards with appropriate security to allow ownership interests in real estate to be transferred effectively through a blockchain-based system.

The benefit of transferring real estate on a blockchain-based system is dramatically enhanced efficiency. The promise of expediting the property transfer system and creating an immutable record of property ownership (which could, in theory, eliminate the need for title insurance as we know it today) is highly enticing.

There is, however, a caveat here: Any blockchain system used to record the ownership and transfer of real estate must have the very highest level of security and certainty.

It must be robust enough so that no external hackers or governmental actors from outside of the U.S. can ever interfere with it in any way. This can be achieved but will take time to develop and test.

Read the full article on PYMNTS.com here.

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