In an innovative move, the city of Baltimore in the United States is harnessing the power of blockchain technology to address its long-standing issue of vacant properties. Baltimore officials have partnered with Medici Land Governance to record details of these properties on a public blockchain as part of a three-year pilot program. The goal is to test the effectiveness of blockchain in real estate documentation and ultimately create a functional blockchain-based platform that provides a comprehensive “chain of custody” for each property.
This initiative is seen as a promising solution to the persisting problem of vacant properties in Baltimore, which have become breeding grounds for criminal activity and drug use. Currently, the process of foreclosing a vacant home in the city is time-consuming and expensive, requiring multiple title searches. By utilizing blockchain technology, the hope is to streamline the process and create greater efficiency.
The blockchain-based system will work in conjunction with the city’s digital SDAT system and is expected to be resistant to ransomware attacks. However, experts caution that the success of this solution relies heavily on the accuracy and reliability of the data inputted into the platform. Traditional title searches will still be relied upon as an additional layer of protection.
Real estate experts in Baltimore are also optimistic about the potential of tokenizing properties if the pilot program proves successful. Tokenization could offer investors higher liquidity and fractional ownership, attracting a new class of investors to the industry. By taking the lead in blockchain experimentation, the city of Baltimore aims to create a supportive environment for such innovation.
Other jurisdictions around the world, including Israel, Hong Kong, and India, are also exploring the possibility of real estate tokenization. The integration of blockchain in the real estate sector offers numerous benefits, and Baltimore’s initiative could serve as a catalyst for further adoption.
As the city embarks on this blockchain pilot program, it represents a significant step forward in finding a solution to the challenge of vacant properties. By embracing new technology and exploring innovative approaches, Baltimore is paving the way for a more efficient and secure real estate industry.
The source of the article is from the blog scimag.news