Blockchain and Future House Purchases
Third phase completed in April 2018
We piloted the first project in Sweden in June to model a property purchase using blockchain and smart contract technology. The goal of the pilot was to evaluate the technology from a legal, business and IT perspective. The third phase is about making an actual transfer of a land title possible. We are deploying the consortium database with the partners of the projects, paying attention to blockchain governance, and integrating it with a working and approved ID solution. On June 18, we completed a full transaction on the platform, showcasing the functions of the platform and its easiness and rapidity.
Sweden has always been a trailblazer with regards to legislation and handling of property data. First we had the registry on paper, in the '70s it was transferred into the digital domain with EDP (Electronic Data Processing) as it was called back then. We believe the blockchain is the new generation technology for our field of work and this project has reinforced the belief. We now start facing questions on how to get this into production.
We have great hope in being able to save time and increase the strength of our offering, but also increase the security and control. Real estate transactions has been a forgotten track in the blockchain development but it is core for our business. As a small bank with a modern IT system, we have the possibility to be flexible and evaluate new technologies.
It is an fantastic opportunity to cooperate and through cooperation create the next generation of technical infrastructure. Our business has a large range which makes us the ideal partner for digital innovation using future technology and we see blockchain as a technology with the potential to disrupt several industries by creating new ways to create secure, open and transparent systems that solve business and societal challenges.
SBAB has the ambition to be an innovator within the financial sector especially in the mortgage space. We knew that blockchains meant an opportunity for big change. Now we are building better knowledge and understanding to be able to analyze how to best integrate this in our business and create the next generation of products and services.
Already during 2016 the Swedish Land Registry was active in 15 countries helping to develop and enhance Land Registry capabilities. Month by month we see an increased international interest in blockchain technology in the field. Last week I gave a presentation of the project at the largest conference on property related issues, at the World Bank. It’s exciting and rewarding helping other countries with something that is at the same time futuristic and of great benefit to society.
The project started in 2016 when Lantmäteriet, Kairos Future, Telia Company and ChromaWay decides to investigate how blockchain and smart contracts could be used for real estate transactions. The property purchase process was quickly identified as an interesting use case together with the mortgage deed transfers. in June 2016 a demo (see below) showing the UI of how such a solution could look like as well as a report discussing the potential of this technology within real estate was released.
The project received a great amount of international attention and in August 2016 the second phase of the project started. Together with two new members SBAB and Landshypotek Bank the project members sat out the goal to build a pilot to test the technology from a business, legal and technical aspect. On the 30th of March 2017 the second phase concluded with the release of a second report talking about the results of the pilot as well as a fully functional technical solution.