It All Starts on the Block
BenchCoin: From The White Papers, Clip 1
In this first clip, we will explore where it all starts; blockchain technology. ICO’s, Tokenisation, Digitisation, Open Ledgers… it all begins on the blockchain. Or more precisely, with blockchain technology. Here we will look at how blockchain technology will benefit the real estate industry.
First, let’s start by answering the question, “What is a blockchain?”. As I am sure most of you know by now, a blockchain, as defined by Investopedia.com, is “ a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central record keeping. Each node (a computer connected to the network) gets a copy of the blockchain, which is downloaded automatically.”
The Blockchain Promises to provide;
More Reliable Records
Blockchains have the advantage of being both heavily encrypted and easy to search. In fact, it’s these two fundamental properties that make virtual currencies like Bitcoin possible: All Bitcoin transactions are a matter of public record, and that public record cannot be changed.
Bringing the blockchain to real estate could therefore disrupt the massive network of third-party escrow and title companies whose entire businesses are based on validating and storing records.
Eliminating these players would streamline the process for buyers and sellers — great news for them, but not so great for companies offering title services.
Less Fraud
Because blockchain technology was originally created for Bitcoin, a virtual currency that’s not backed by any central bank or government, extensive audit trails were baked into its DNA. As a result, blockchains show records of who made a transaction and when, and these records cannot be forged.
For real estate transactions, this means less opportunity to commit fraud by presenting falsified or forged records. This protects both the buyer and seller, particularly for luxury properties that are often bought in cash transactions.
Greater Transparency
With this new technology, public records are more than just a handy feature — they’re fundamental to the very concept of the blockchain itself. Without a ledger of transactions, there can be no trust or reliability.
Not everyone is a fan of public records. Some ultra-wealthy are fond of obfuscating their identities in real estate transactions. Seeing every property purchase become a matter of public record, therefore, won’t go over well everyone.
But with so much at stake, the industry will certainly find a way to thread this particular needle. It may be possible, for example, to maintain proper records — and enjoy the convenience and security of blockchain technology — while still allowing authorised agents to sign on the digital dotted line.
Less Paperwork
Finally, though it might sound trivial, reducing the amount of paperwork needed to close even the simplest property sale would result in vast savings of time, money and frustration.
This may be the only blockchain benefit that disadvantages no one: Be they buyers, sellers or brokers, no one welcomes the mountain of paperwork that’s been part of the process for decades.
BenchCoin Project
Our project will introduce BenchCoin, blockchain tokens that are backed by real estate dedicated for rental to university students. In addition, we will create a digital marketplace platform where student pods and properties (and eventually retail and commercial properties) can be bought, sold and traded through custom property blockchain tokens through a decentralised crowdsale auction and P2P property token exchange.
What’s up next…
In the next part of our series, “BenchCoin: From The White Papers”, we will explore how blockchain technology is used in the Tokenisation of Real Estate.
BenchCoin Project on Medium: From The White Papers
BenchCoin ICO Website: http://hfbbenchmarkico.com/
