Baltimore Leverages Blockchain Technology to Revitalize Blighted Properties
Baltimore Leverages blockchain Technology to Streamline Property Transactions
Enhancing Home Ownership Opportunities
The city of Baltimore is adopting blockchain technology to facilitate a smoother property transaction process, aiming to eliminate barriers to home ownership. Ebony Thompson, the city solicitor for the Baltimore City Department of Law, emphasized during a June 17 panel discussion hosted by the Brookings Institution that this initiative encourages business engagement with the city and promotes operational efficiency.
Partnership with Medici Land Governance
In a strategic move last year, Baltimore collaborated with Medici Land Governance to develop a blockchain platform designed to record approximately 16,000 vacant properties within the city. Thompson explained that utilizing blockchain—a secure digital ledger technology commonly associated with cryptocurrencies—will not only simplify title transfers but also reduce associated costs.
Reducing Inefficiencies in Title Searches
When the city acquires a vacant property, it must conduct a title search, which is then repeated when the property is sold to an investor. This process is repeated again when the property is renovated and sold to a new owner. Experts have noted that a single title search can consume hours and incur costs ranging from hundreds to thousands of dollars. Thompson pointed out the inefficiency of this repetitive process, particularly given the number of vacant properties, which contribute to urban blight and crime.
Real-Time Access to Property Records
Currently, around 228,000 properties are recorded on the blockchain, allowing buyers, real estate agents, and city officials to access securely stored title records, thereby minimizing the risk of fraud and expediting transactions. Traditional title searches can take at least two hours, but with blockchain technology, property information is entered into a real-time database, significantly speeding up the search process.
Streamlining Documentation and Reducing Fees
Once title data is integrated into a blockchain system, various identity solutions can be implemented to facilitate quicker access to necessary documentation, thereby minimizing paperwork. Chris Brummer, a professor of financial technology at Georgetown University Law Center, noted that a more efficient system could lead to lower fees in property transfers, addressing a significant barrier to ownership. He highlighted that home ownership is a primary means of wealth accumulation in the United States, and reducing fees through decentralization can enhance equity and access to wealth.
Innovative Solutions for Urban Challenges
Baltimore’s initiative exemplifies the potential of new digital technologies to tackle urban challenges, as noted by Nicol Turner Lee, director of the Brookings Center for Technology Innovation. She emphasized the importance of leveraging technology to strategically address everyday issues, particularly in the context of renovating blighted housing.
The Future of Municipal Governance
Cleve Mesidor, executive director of The blockchain Foundation, described emerging technologies like blockchain and artificial intelligence as part of the Web 3.0 era, which follows the rise of social media in Web 2.0. Mesidor asserted that these technologies can create systems that better serve the needs of everyday citizens.
Baltimore Mayor Brandon Scott expressed his commitment to modernizing municipal processes, stating, “Under my administration, I have sought every opportunity to ensure Baltimore not only keeps pace but leads in leveraging technology to confront our most pressing challenges. Utilizing blockchain to address the issue of vacant properties is one of the most promising strategies we can pursue.”
