Barclays, Royal Bank of Scotland (RBS), corporate blockchain-firm R3 and other participants completed the test of the blockchain, which, according to them, led to the acceleration of real estate transactions.
On Thursday, the technical project partner, the Instant Property Network (IPN) associated with R3, announced that during the test, test data was used to conduct simulated property transactions on a distributed accounting system over a five-day period. Efforts, according to the firm, have demonstrated that the process of buying and selling real estate can be reduced from more than three months to "less than three weeks."
The real estate market is currently using a paper-based and email-based approach that is “difficult, slow and inefficient,” IPN reports. As a rule, at least eight parties, in addition to the buyer and the seller, take part in a real estate transaction, each of which must go through a process of exchanging information that includes many documents, platforms and databases. This leads to "delays in transactions, errors, increased costs and uncertainty for all parties," the company said.
IPN suggested that using the blockchain technology for this process could save about $ 160 billion a year in the global real estate market.
Dan Salmons, director of mortgage innovation at RBS, said:
“What really changed the situation is that R3 brought together representatives from all the key parties involved in the process, and as a result we can see the potential of such a network to increase the transparency and speed of customers, as well as reduce the cost and complexity for all participants.”
The IPN claims to have created a system in which members selling real estate can directly carry out operations and maintain control over their own data. The firm said that it is currently attracting "dozens" of private and public sector companies to the next phase of the project and plans to release the next version of its platform in September.
According to the report, Squire Patton Boggs law firms from the United States, Ashurst and Clifford Chance law firms from the United States, and Search Acumen, which collects real estate data, were among the other participants in the lawsuit.