The word “blockchain” first rose to prominence amid the soaring Bitcoin prices last year which created overnight millionaires across the world, but the revolutionary technology can be used for a lot more than just currency trading.
As most people are probably now aware since it has been a trending hot topic across many lines of business for several months, blockchain is a technology that allows a digital, distributed ledger to immutably record and share information. It is virtually incorruptible, as all the information is continuously reconciled in a database across multiple locations.
Moving away from Bitcoin
Branching out from how it has been used traditionally for cryptocurrency trading, the technology is now finding a place in a number of different markets, including property.
One company in the sector that uses blockchain is online execution platform Clicktopurchase, which allows property transactions to be completed quickly and easily online. The platform uses blockchain technology to enable a legally binding exchange of contracts to be done electronically and instantly at the point of sale, as well as offering a real-time online auction to sellers operated either by a live auctioneer interacting with bidders, or an “artificial intelligence-operated real-time auction”.
The swift processing of blockchain technology means that the process takes place much faster than traditional property sales, and all transactions are recorded in the Clicktopurchase blockchain for total transparency and security.
Neil Singer, CEO of Clicktopurchase, said: “When you have purchased a property using Clicktopurchase, you have absolute proof of the right to ownership. When you come to sell, a buyer can completely rely upon your record. Intermediaries will have a reduced role, solicitors will have less to check and it raises questions as to the future need for the land registry.”
One of the major risks faced by many in the property industry is fraud, which currently totals more than £1bn a year due to false ownership claims on properties. While conveyancers using traditional methods can only do relatively basic checks, a blockchain land registry would solve this by creating a digital “fingerprint” of property owners – and this is something that could work in conjunction with platforms such as Clicktopurchase and others who branch into proptech offerings and blockchain in the future.