Their product is only as good as the title on the first transaction. Supposedly all property transactions will be kept in the computer record associated with each property parcel. But as we all know, that prior history is always open for debate, and putting it into a computer record is not going to eliminate that ongoing debate. The history at the courthouses lives and breathes so to speak. So if you suddenly have a flawed title which purports to not be flawed and kept in Blockchain, how much confidence are you going to have in blockchain when you find a long lost pipeline easement going right through your living room. Do you turn to a new product called Blockchain Insurance?
Blockchain seems to be an attempt to expand the MERS system presently being used for mortgage assignments to the deeds as well. I guess all in the attempt to put the county recorders out of business. And once that happens, it puts abstractors out of business as well, at least in the future. But before that happens, they are going to need us to get their initial history right, or there will be no demand for their product. They are still going to need title insurance of some sort, because there will always be mistakes in the record that need to be insured. So the industry won't be completely destroyed. But it will be much harder to pin things down because the blockchain record isn't in your local courthouse anymore and the local voters didn't elect the Blockchain administrator.
to post a reply:
login - or -
register