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The basic explanation of this emerging software technology is as simple as describing an accounting ledger or a document registry. Blockchain is at root a public software system that registers and documents transactions in real-time. Unlike a paper ledger, blockchain does this with irrevocable security, modern speed, and universal recognition. Unlike most registries, the contents of any given record can be made immediately readable.
The registry most often used by the real estate industry is the government facility dedicated to property titles – county recorders, often enough. Duke Long and panelist John Merkovic of Cook County, IL’s Recorder of Deeds spelled out the problem his office faces that blockchain could cure:
“30% of our titles are no good and title fraud is pretty rampant,” Merkovic said. Blockchain makes sense for this service because it provides a timestamped, secure record of events that occur.
If blockchain appears an alien concept, panelist Dave Conroy, NAR’s CRT Labs Research and Development Lab Engineer, pointed out the industry has been calling it “chain of title” for a very long time. Gains in transparency and efficiency are what blockchain promises, starting with where the need is greatest: high-volume county recorder offices with data quality issues.
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