Exploiting blockchain technology in real estate

 

Exploiting blockchain technology in real estate

The city of Baltimore in the United States is experimenting with blockchain technology in an effort to overcome the challenge of long-running vacant properties.

According to

 a report in the Baltimore Sun

City officials signed a contract with Medici Land Governance to record

the details of the vacant properties on the public blockchain network.

The $225,000 contract includes

Medici Land Governance running a three-year pilot program to test 

the effectiveness of blockchain technology in real estate documentation.

By the end of the pilot program

city officials expect to have a blockchain-based platform 

containing accurate records of each property.

This project

which was devised by Baltimore City Attorney Ebony Thompson, was praised

by real estate stakeholders as a solution to the ongoing vacancy problem.

Studies are expected to begin in early 2024, with many insurance

and real estate companies indicating support

 for the creation of an "immutable ledger."

Catherine Pinkard

chief executive of Pinkard Real Estate

said:

"This project enhances the level of efficiency we have never seen before."

"Users will be able to see the real estate records very clearly through these

 blockchain chains, and find out when they have changed, who has changed

why and at what cost."

The city of Baltimore

in the United States is dealing with the challenge of

 vacant properties of up to 13 thousand parcels of land.

Experts consider that these vacant properties can become

 a fertile environment for criminal activities and drug abuse.

Delays associated with mortgages for vacant homes in Baltimore

have complicated the problem for the population, requiring multiple

 and costly research to determine ownership.

City officials plan to collaborate

with Medici Land Governance to use blockchain technology to

record details of vacant properties on the public blockchain network.

The new system is expected to work alongside the city's SDAT digital system

with experts confident that the new technology will be resistant to cyberattacks.

Despite the availability 

of the system for the public

However, there are plans to create a special layer on the blockchain

where only city employees can enter data on vacant properties.

Real estate experts warn that using blockchain technology

 will not provide an automatic solution to the problem

But the real efforts lie in the quality of the data entered into the platform.

Real estate agents in Baltimore

 believe that if the pilot project is successful

 properties can be converted into digital codes

Providing higher liquidity and the opportunity to partially share ownership

 with a new class of investors in the industry.

Many jurisdictions such as Hong Kong and India are important initiatives

taking advantage of the many benefits that can be derived

from blockchain technology integration.