blockchain wave real estate

In late July, the National Association of REALTORS® hosted blockchain experts, software developers, and industry partners with the intent of combining efforts to launch effective blockchain applications in real estate. In addition to distributed ledger experts, the meeting was also attended by technology executives from large MLS’s and REALTOR® Associations, real estate attorneys, home inspectors, and representatives from local governments.

NAR’s Research and Development Lab, CRT Labs, has been leading the organization’s innovations in this space and organized the full day meeting. The day was kicked off by a presentation from a leading figure in the open-source software movement, Brian Behlendorf, who is also the project lead for the Hyperledger Project.

The group spent the day discussing the merits, value, governance, and access control of a multitude of different potential blockchain applications. The purpose of these applications ranged from improving access to public licensure information to enhancing the way REALTOR® associations exchange member information. Perhaps the most impactful application discussed was the development of a blockchain-based system that generates and tracks unique identifiers for properties in a similar way that VIN numbers identify automobiles.

The potential for impact of these applications was so great that the group has decided to move forward and dedicate development resources to multiple applications. Following the event, Behlendorf, on behalf the Hyperledger Project expressed interest in making the Property Unique Identifier application a featured case study for their organization.

Presentations

Brian Behlendorf, HyperLedger Project

Behlendorf shared the exact moment of when he realized the potential for blockchain technology. His “Ah-Ha” moment came after hearing of a land title project in Honduras that was being started to protect land ownership through decentralization of records. In recent history, the digitization of systems has led to the centralization of systems. He explained how permissioned ledgers can begin to re-decentralizing how these systems work.

Behlendorf then went on to describe the opportunity and benefits that will come from the transformation of the traditional “hub and spoke” models to ledgers, and specifically how the roles of intermediaries in those models will shift over time.

John Mirkovic, Cook County Recorders of Deeds

John Mirkovic currently serves as Deputy Recorder (Communications/IT) for the Cook County Recorder of Deeds. In that role, he serves as office spokesman and is responsible for internal and external communications, legislative advocacy, the CCRD Property Fraud Unit, and has implemented numerous technology advancements at CCRD.

Mirkovic shared his experience launching a pilot program to use blockchain to track and transfer real-estate property titles and other public records, becoming the first land recorder’s office in the country to do so.

Andrew Page, Business Analyist, Connamara Systems

Andrew Page presented on Design Patterns for Public Registries. Prior to this meeting,Page created an open source title registry application that could be integrated with local, state, or federal governments to track ownership of assets. He spoke about the advantages and disadvantages of different application architectures for the title registry.

David Conroy, CRT Labs, NAR

Dave Conroy demonstrated an application that would allow for more efficient sharing of engagement levels of REALTORS® among the three levels (National, State, and Local) of REALTOR® associations on a private and permissioned ledger.

About CRT Labs

CRT Labs is a research group operated by the National Association of REALTORS’® Center for REALTOR® Technology. The primary goal for CRT is to track emerging technologies that will affect real estate, educate its members, advocate for the proper use of technology, and innovate when there is a gap between what is needed and what is available.
In 2015, CRT established the R&D lab to investigate smart home/internet of things devices, renewable energy, urban agriculture and building materials, as well as any other emerging technologies as they become evident. CRT is working with NGOs, vendors, national laboratories, universities and government agencies to help promote NAR as an agent for technology research and innovation.