Ubitquity LLC recently launched its platform prototype for document storage and integration with the title insurance industry and county clerks within the United States using Colu’s implementation of Coloured Coins to manage assets on the Bitcoin blockchain.
Nathan Wosnack, CEO and co-founder said that using a blockchain will significantly reduce risks in every step of documentation. In an interview with IBTimes UK he said: “Fraudulent conveyance costs the industry approximately a $1bn (£700m) a year in the US alone. Much of that comes from financial institutions issuing loans or mortgages to bad actors who are perceived to be the rightful owner to the land. Shared immutable ledgers allow for greater collaboration between industry players and a potential reduction in fraud.”
Wosnack considers the blockchain-powered platform to be able to improve due diligence for the industry. “As part of due diligence, title companies have to research properties in order to ensure the chain of title is clear.
“Due diligence is in some cases a very-time consuming and arduous process. It can be done quicker and easier with a shared public ledger platform like Ubitquity; particularly for smaller title companies and financial institutions. Title companies can issue a ‘certificate of clear title’ on the blockchain by signing a title record with their own private key.
“The banks will also benefit from a reduced title search time, increased confidence in the deeds history, and process transparency over a public blockchain. Lenders will have the ability to publish and track their deeds of trusts (liens) to a particular property directly on the blockchain.”
The benefit of this for real-estate title and deeds records is it allows anyone to browse those records. Public keys can be made public, so that trustworthy organisations can attach trusted brands to specific title records, according to Wosnack.