Foreclosure Process in Baltimore
Foreclosing on a vacant home in Baltimore is a complex and time-consuming process. According to the Baltimore Sun, it can take two to three years due to the legal requirements in Maryland. City officials must wait for title searches to verify the ownership history of the house at each step of the process.
This lengthy process poses several problems. The vacant home can attract critters, crime, and hazardous conditions, while potential buyers have to wait for months to complete the acquisition, renovation, and sale.
Baltimore’s Solution: Real Estate Blockchain
To address these challenges, Baltimore has initiated a blockchain project worth $225,000. The city’s spending board approved the contract in December. Medici Land Governance will input records for approximately 13,600 vacant properties into a blockchain over the three-year pilot.
“Building a database more secure than the system currently used by the city and also more efficient.”
This blockchain-based solution will enable faster certification of homes as they change hands, eliminating the need for multiple title searches. It provides an immutable chain of custody, ensuring secure and efficient property records.
The Potential of On-Chain Real Estate
Blockchain technology has proven its ability to verify ownership in virtual worlds like Decentraland. Now, it’s being applied to real estate in North America, starting with Baltimore. This innovation aligns with the ideas put forth by economist Hernando de Soto.
In his book “The Mystery of Capital,” de Soto highlighted the importance of accurate real estate records for economic development. He argued that well-developed property rights systems are essential for wealth creation. Without these rights, assets become “dead capital” that cannot be leveraged for income or growth.
Baltimore’s implementation of blockchain for real estate could have far-reaching implications. It has the potential to unlock frozen assets and provide liquidity for the world’s poor, enabling them to access credit and start businesses.
Hot Take: Blockchain Revolutionizing Real Estate
Baltimore’s use of blockchain technology in real estate is a significant step towards addressing long-standing challenges in property ownership and transactions. By leveraging the security and efficiency of blockchain, the city can streamline the foreclosure process and certify homes more quickly.
Furthermore, this innovation has the potential to extend beyond Baltimore and benefit impoverished populations worldwide. By providing secure property records and opening up liquidity through smart contracts, blockchain can empower individuals to unlock their assets and access financial opportunities.
The integration of blockchain into the real estate sector holds promise for economic development and wealth creation on a global scale.
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