Ubitquity LLC, a real estate blockchain based company in Dover, Del., has launched a prototype platform for secure document storage and integration with the title insurance industry and county clerks in the U.S., according to the International Business Times.
The system uses Colu’s Colored Coins to manage digital assets on the bitcoin blockchain.
Using a blockchain will significantly reduce risks in every step of documentation, according to Nathan Wosnack, Ubitquity’s co-founder and CEO. He said fraudulent conveyance costs the industry approximately a $1 billion annually in the U.S. alone. Much of loss is from financial institutions issuing loans or mortgages to bad actors believed to be the rightful land owner. Shared immutable ledgers provide greater collaboration among industry players and a potential reduction in fraud.
The blockchain platform will increase due diligence. Title companies, in conducting due diligence, must research properties to ensure the chain of title.
In some cases, due diligence is an arduous and time-consuming process. A shared public ledger like Ubitquity makes it easier and faster, according to Wosnack. Title companies can issue a “certificate of clear title” on the blockchain by signing a title record using their own private keys.
A public blockchain also helps banks through reduced title search time, improved confidence in the deeds history, and process transparency, he said. Lenders will be able to publish and track deeds of trusts (liens) to a certain property directly on the blockchain.
Each county recorder has its own regulations by which they must abide. Wosnack said Ubitquity will work with them to ensure legal compliance with regulations in their jurisdictions.
A public ledger for a real-estate title and deeds records allows anyone to browse the records. Public keys can be made public so organizations such as banks, county offices and title companies can attach their trusted brands to specific title records, Wosnack said.
Wosnack selected Colu since the Colored Coins is a protocol that could be deployed on other blockchains like Ethereum. The bitcoin blockchain is currently the most reliable and secure blockchain in existence, he said.
Colu’s Colored Coins API is very complete and supports many of the features Ubitquity needs, he said, including smart contracts support, smart assets and multi-signature. The protocol can decentralize a large amount of metadata and file attachments using Torrents.
Ubitquity is working with companies in the space and is inviting select title companies, financial institutions and others for an exclusive demo/presentation of its platform.
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