What is the most precious commodity in the world?
You can make a strong argument that it is trust, but what is the biggest purchase that people make in their lives? Generally speaking, it is buying a house.
Quite naturally then, criminals will find ways to perpetrate fraud to get their hands on at least some of the money involved. Combatting such fraud and enhancing trust is now an area where blockchain is beginning to make a significant contribution.
Solving Traditional Real Estate Problems with Blockchain Technology
One of the major types of real estate fraud is “closing fraud.” “Closing” is the US term for the final signing of all contracts and exchange of money for a property purchase.
Closing fraud can happen in a number of ways. For instance, some friends of mine were victims of a spear-phishing email that provided wiring instructions for their deposit on a new home. They wired the funds but were quick enough to figure it out and got their money back.
This is where Secure Insight of Parsippany, New Jersey comes in. Secure Insight vets real estate professionals who are involved in closings. That way, everyone involved can be sure they are dealing with individuals who are verified to participate in the transaction, have passed background checks, and so on.
The Real Estate Transaction Process has Changed; Now Technology is Changing to Improve it
The idea is to eliminate bad actors from the transactions entirely. Secure Insight is now putting this information on the blockchain to add an extra layer of trust for their records.
Bear in mind that all the different individuals at a closing may not know each other, and if a bank is involved, it typically wires money to someplace or some account as instructed.
After Covid, this process has become much more remote, so reliance on electronic records has grown substantially. With the vetting of the parties, and the records of the vetting made incontrovertible by being on-chain, trust is increased.
Increasing Trust Via Blockchain Technology
But it doesn’t stop there. Secure Insight now has a vision where all the documents involved in a real estate transaction can be put on a blockchain.
The distributed ledger of a chain makes it ideal to increase trust across the entire life cycle of a home purchase.
Additionally, Secure Insight has found that being on-chain makes the process more efficient relative to the traditional processes that exist today. You could think of a title to a house as an NFT, and just like an NFT there is undisputable provenance.
That is revolutionary, and the possibility of real estate evolving into digital assets is very real.
Maybe blockchain fixes everything–or perhaps it will, if given enough time and focus.