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Realtors® Reassert Role as Leader in Blockchain Technology Education
press release, National Association of Realtors
   

The National Association of Realtors® unveiled a Blockchain Guidance paper on Wednesday afternoon during a webinar designed to keep real estate at the forefront of conversations surrounding the emerging technology. Although blockchain usage is not yet widely prevalent in the industry, NAR has worked to proactively educate state and local Realtor® associations, members and consumers on hurdles that could arise as the technology begins to penetrate the market, ensuring transactions with Realtors® “are accurate, efficient and reliable,” as the Guidance paper reads.

Blockchain technology can be explained by using online platforms to conduct a transaction between two or more people. Whatever the transaction is, all parties involved receive information in a secure way. When all parties agree to the terms of the transaction, there is a recorded “block” that locks the agreement in place indefinitely. This ensures the data cannot be altered unless all parties agree once again to accept changes, which would record the new block. New blocks always include a reference to the previous block, forming a “chain.”

“Blockchain technology is quickly evolving from a theoretical concept into a resource that could become ubiquitous in our industry,” said NAR President John Smaby. “America’s 1.3 million Realtors® will be some of the first professionals to fully adopt this technology, and we want to be sure that our members and local associations are prepared to engage and educate their communities as this change occurs. This week’s event helped shine the light on some of the potential challenges we face as blockchain emerges, and NAR’s efforts continue to ensure that Realtors® will be involved in discussions on blockchain regulation at every level across the country.”

While blockchain is predicted to be a major part of all real estate transactions in the near future, its true impact on the real estate industry remains unknown. However, state governments are beginning to anticipate the impending evolution and some legislatures have already moved to ensure laws are in place to protect consumers and businesses.

“As local governments continue eyeing potential blockchain regulation, NAR’s proactive efforts will ensure policymakers understand how legislative action could impact the real estate industry. And, specifically as blockchain eliminates an intermediary from home sale transactions, our voice is key to ensuring the protection of consumers remains everyone’s primary concern,” said Smaby, a second generation Realtor® from Edina, Minnesota. “Blockchain technology has yet to affect the market or consumers in any practical way, but NAR’s industry-leading actions will ensure that all legislative or regulatory efforts positively impact real estate transactions and the industry as a whole.”

NAR’s Guidance paper on Blockchain Technology and Real Estate, concerns a technology that NAR believes could significantly affect the real estate industry. The Guidance paper is provided by NAR to help Realtors® at the state and local levels understand the implications of blockchain technology for the real estate industry. The paper provides information and analysis on blockchain technology, and proposes guidance to assist Realtors® in analyzing existing state blockchain legislation, and monitoring and commenting on proposed state blockchain legislation.



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Problems with using Blockchain:

1)  errors in the records which either will a) need to be corrected by a cattle call army of searchers paid less than standard wages; or  b) cemented into the record which will require going back to title insurers for their lawyers to figure out - a lengthy process.

 2)  digital data lifespan: a) with standard care, digital files degrade within 10 years;  b) with very careful storage, digital data left on magnetic media will last about 30 years.  Of course, all the registries and court clerks' files are also impacted by this phenomenon.  Any solution would logically require regular reentering all the date or instituting a program of regular creating backups at regular intervals appropriately spaced out.  And the hardware? Hardware has its own problems. 

3)  security?  Equifax, Marriott (500 million customer files), fb...etc.  See the article cited on the front page of today's SOT about security.

So the realtors, title companies, lawyers, etc. arrogate all the money to themselves and when the files have degraded they will be long gone.

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blockchain is not bitcoin. bitcoin is not blockchain. jeez. when are you going to get that through your head.

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Add to that the Inputs.io hack, the free bitcoin wallet lost 1.2 million dollars in 2013, Mt.Gox bitcoin exchange handling 70% of all bitcoin transactions went bankrupt after being hacked and lost 460 million dollars in 2014. Then add Gerber Ransomware to the mix and you have a recipe for disaster.

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What’s the REAL purpose? Is it to speed the process? I doubt it. Who wants to make the biggest and likely most important purchase of their life in 5 minutes.

It would seem that the real purpose is to make all those pesky title issues like judgments, Child support liens, state and federal tax liens, probate, etc not attach to the “block”. Then title issues would effectively disappear resulting in inexpensive (but unreliable) title examinations. How will blockchain ever get the Treasurers, Auditors, Assessors, District Courts, Federal courts, Probate courts, etc etc etc to effectively buy in to blockchain in 3300 counties to protect the interests of the public?

Who is the Driver behind this?!
My guess is - follow the money. Who has the most to gain - those who don’t want to pay for a quality search, and don’t want to pay for title problems. So who is leading the charge at the Title Underwriting level? County level? And who at the NAR level? Do they understand the current system and what this would mean?

Your thoughts please!!


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I couldn't agree more with your points.  And there is now the phenomenon of the Internet billionaires opening up brick and mortar shops while keeping their presence on the Net.  I remember attorney Robert Shapiro (part of OJ's dream team for the criminal trial alleging murder) wasn't satisfied by the income generated from his law practice.  He then went online with Legal Zoom and charges $700 (last I saw) to set up your LLC.  The greed is stunning.  The lasting negative impact on the people who were doing the work...SMH. 

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Blockchain is not disruptive technology.  It is transformative technology.  Just like TCP/IP transformed the internet in the 1970's, 1980's and 1990's.   And all of your alarm is very normal but it will not stop the transformation.

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Please furnish your background regarding real estate title work Mr. Rafferty.. 

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I own Title Care Inc.  Here's the URL.  www.titlecareinc.com.  you can check me out on LinkedIn, too.

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