Blockchain Property Transaction Trial Completed By R3, Barclays And RBS
Instant Property Network (IPN), an R3-affiliated blockchain-based real estate platform, has successfully completed a global trial of a new blockchain system designed to speed up property transactions by months. 40 companies participated in the trial, including Barclays, Royal Bank of Scotland Group, Squire Patton Boggs, Ashurst and Clifford Chance.
In its announcement, IPN said that the trial, which was facilitated by R3, ran end to end transactions in February of this year using test data through a new distributed ledger to simulate property sales over a five day period. The trial demonstrated how duplications and costly reconciliation processes could be removed from the buy/sell process. The first transaction reportedly took less than an hour to complete.
“It is estimated that, with the addition of off ledger business process and consumer decisions, the end to end buy/sell process could be reduced from over three months to less than three weeks,” IPN said. “If these efficiencies were applied to the global property market it could equate to an annual saving of approximately $160 billion.”
According to IPN, the system negates the risk of breaches and compliance issues and vastly reduces risk and the cost of continuous reconciliation of facts and data by allowing participants to transact directly and retain control over their own data.
“Increasing trust, speed and efficiency is just the first step,” said John Reynolds, Founder and CEO of Instant Property Network. “The IPN network will allow organizations to build their own applications which should vastly improve the customer experience. Eventually, we believe it will enable the tokenisation of property which will fundamentally change how property works as an asset.”
IPN said that it is now onboarding dozens more private and public sector organizations to the next phase of the project and aims to release the next version of the platform in September.
“There has been plenty of talk about how distributed ledger technology could revolutionise the property industry, but little in the way of tangible results,” said David E. Rutter, CEO of R3. “This trial changes that. Not only has it shown that distributed applications work and the benefits are real and substantial, it has also shown that there is huge appetite in the market to evaluate it.”