IBREA: A complete solution for land and real estate registration using blockchain

Governments around the world are not very interested in the application of blockchain technology in land registration and real estate. But combining Bitcoin and blockchain technology with the real estate industry will be a great cause. CoinTelegraph (hereinafter referred to as CT) interviewed Ragnar Lifthrasir, chairman of the International Bitcoin Real Estate Association, on the application of blockchain technology in land registration and real estate. His team is trying to create a digital solution based on blockchain technology to replace government land and ownership registration.

Ragnar Lifthrasir (RL) believes that “when both the buyer and seller of an asset agree to use Bitcoin and blockchain technology instead of government solutions, no one can stop its use as long as both parties agree.” He also shared specific ways to integrate blockchain technology into the real estate industry to make it simpler and safer.

CT: How can blockchain technology be integrated into the real estate industry? Is it easy for ordinary users to use this technology?

RL: There are three main ways blockchain technology is used in real estate: real estate purchases; real estate escrow; and real estate ownership transfers. One of our goals is to make Bitcoin more accessible to the average user. We are creating companies and applications that will allow users to use Bitcoin technology without even knowing they are using Bitcoin.

Our company is focusing on the field of real estate title registration. We are planning to record and store real estate title on the blockchain. In this case, users will not know that they are using Bitcoin. The process will be as simple and familiar as uploading a file to DropBox or Google Drive.

In real estate escrow, we are also working on this, but it will be a very small part in the future. The process is very similar to a bank transfer. You put the amount you want to transfer into the account, then buy the required amount of Bitcoin, and then put the Bitcoin into escrow.

CT: How will blockchain technology prevent real estate title fraud?

RL: There are two main ways that Bitcoin technology prevents real estate and title fraud. First, when you upload a document to the blockchain, you need to prove that you were the first person to have the document. And when you copy the document (transfer ownership), you need to backtrack to prove that you now own the document. So, basically the blockchain prevents fraud by creating a document that is very difficult to forge.

In the event that someone is able to forge a document, the blockchain will help you prove that you are the first person to have the document, which is the actual transfer mechanism. To this end, we are working to provide our customers with a solution called Colored Coin, which is more similar to what Overstock and Nasdaq are using. Both of these companies use colored coins to solve security functions. However, we are applying blockchain technology to real estate assets. Even if an intruder may be able to produce a forged document, they still do not have the ability to transfer the asset unless they are controlled by the private key. Therefore, it is important to not only have the actual security document that shows your ownership, but also the private key that can transfer the property.

CT: What are the main obstacles in building a land/title registration system based on blockchain technology without government approval? Has the government interfered with your plans?

RL: The barrier right now is not the technology. We have all the technology we need. The barrier is simply building the system and getting people to use it. It's like any other business. We need to build it and prove it and explain the benefits to people. We are working hard to create new products and then bring them to market. And to offer products and services at the right price.

The challenge is to convince people that new technologies will bring more benefits.

There is no reason for the government to stop us because we are not talking about money. Governments are always worried about money laundering and currency fraud, but they are not more concerned about the real estate industry. Our strategy is not to try to convince the government to use blockchain technology for land registration, but to provide a broad solution for the real estate industry. Once enough people in the industry are using it, the government will have no choice but to put up with it. When both buyers and sellers of an asset agree to use Bitcoin and blockchain technology instead of the government solution, no one can stop its use as long as both buyers and sellers agree.

We are not trying to replace the government, we are just trying to provide an alternative for people to choose from. Just like Bitcoin is not trying to replace fiat currency, but to provide a digital alternative to fiat currency. We are trying to provide a digital alternative to the government land title registry, and you can use it both ways at the same time.

CT: Are you the first company to offer Bitcoin and blockchain solutions?

RL: We are not the first, but I can tell you that other companies are doing it wrong. A lot of people in the Bitcoin community don’t understand real estate. The first problem is that there are very few companies that try to apply blockchain technology to real estate title registration, but they don’t really understand how real estate works.

The second problem is that businesses are not finding enough people or companies to use blockchain technology. I think this is a real challenge and we are working hard to overcome it. The blockchain technology is out there. People and companies in the Bitcoin community are building applications and businesses to try to convince other companies or individuals to use Bitcoin. The problem is that they refuse to use Bitcoin because they have never used Bitcoin before.

What companies need to do is find other people in the industry to work with. People often think that what they need to do is convince non-Bitcoin users to use Bitcoin, but this is wrong. I think that companies that want to start applying Bitcoin technology to the real estate industry need to connect with other real estate professionals and companies to communicate and discuss how to integrate Bitcoin and blockchain technology into the real estate industry.