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It seems the unstated proposal here is that cryptography will reduce the burden necessary to validate a title. Maybe. Let's say the house is in a town that has
by notafraudster 5y ago
It seems the unstated proposal here is that cryptography will reduce the burden necessary to validate a title. Maybe.
Let's say the house is in a town that has 100 houses and the current title verification process is that you go to the town hall, which is open from noon to 2PM on Thursdays and every other Tuesday, and you ask Ethyl, who is 71 and has cataracts, to go check the title and verify the owner is who you say it is. She takes the title document from you and then goes to an original master and checks the names. There was a flood in the town hall, so houses 21-40 had their original documents damaged in the box but there's an attestation process that applies in that case. Also, a bylaw requires that Ethyl only deals with a licensed title verification agent, of which there is one in the town, and he doesn't work Tuesdays.
This is burdensome! Both Ethyl and the verification agent are probably rent seekers!
It seems like your pitch is "if instead of this, the town webpage had a cryptographically signed register that simply notes who owns everything, then you could just go on the webpage and verify it yourself."
That would be simpler! But not because of blockchain. It's also the case that in a non-blockchain world, the town could put the ownership on a traditional database online, and give owners PINs that can be used to do the title verification. Or just list all the owners publicly by name and make the town webmaster the central trusted authority that the changes are not fraudulent. Or they could even make the ledger cryptographically signed exactly like a blockchain but with the contents centrally stored rather than distributed/public.
So it's still hard for me to think how you can separate the blockchain pitch "processes would be more efficient if we designed them to be efficient", blockchain or not.
- nonameiguess 5y agoOther problem is ownership transfer isn't even necessarily the bottleneck to liquidity of real estate. Most real estate is still occupied by people using the property for some reason, either for a place of business or because the live there. Moving their business or family to a new piece of land and someone else onto theirs requires changing school districts, updating bank records, work records, canceling utilities, physically moving all of the objects, packing, unpacking. All of that is much more cumbersome than transferring the legal ownership rights to the lot. Housing stock will never have high liquidity regardless of how you record ownership. If you want liquidity while exposing yourself to real estate as an investment vehicle, that's why REITs, MBSs, and CDOs exist. You don't want to trade physical houses.