A blockchain trial performed by the Barclays, Royal Bank of Scotland (RBS), enterprise blockchain firm R3 and other participants has reportedly resulted in faster property transactions.
The Instant Property Network (IPN), affiliated by R3, the tech partner on the project, announced on Thursday that a blockchain trail using test data was carried out simulated property transactions over a distributed ledger system over a five day period. The firm added that the effort demonstrated that the time period for real estate buying and selling process could be reduced from more than three months to “less than three weeks.”
IPN stated that the current approach using a paper and emails is “complex, slow, and inefficient.” In general, beside the buyer and seller, at least eight parties are involved in each property transaction. All of these participants have to go through the process of sharing information involving many documents, platforms, and databases. The firm adds that this leads to “delays in transactions, errors, increased costs and uncertainty for all parties.”
IPN suggested that using blockchain technology for the process could save the global property market about $160 billion annually. Dan Salmons, director for mortgage innovation at RBS, said:
“What has made a real difference here is that R3 has brought representatives of all the key parties involved in the process together, so as a result we can see the potential for a network of this kind to improve transparency and speed for customers, and reduce cost and complexity for all involved.”
The said blockchain, as claimed by IPN is a system wherein participants of a real estate sale can transact directly and retain control over their own data. It was further elaborated that they are currently looking at involving “dozens” of more private and public sector firms for the next phase of the project, which is targeted for a September release.
Other participants in the trail include U.K.-based law firms Ashurst and Clifford Chance, U.S.-based law firm Squire Patton Boggs, and property data firm Search Acumen, according to the announcement. R3 CEO David Rutter, said while commenting on the effort:
“Not only has it shown that distributed applications work and the benefits are real and substantial, it has also shown that there is huge appetite in the market to evaluate it.”
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