Blockchain startup Coadjute announced the launch of Coadjute Network, a distributed ledger technology (DLT) network that enables businesses operating in real estate to share data about a property sale. The first deal on the platform was the sale of a house in Kent.
The housing market involves a series of parties, from estate agents, legal firms, and mortgage brokers to lenders. During a typical four-month process between agreeing on a house sale and completing the transaction, there are numerous phone calls and emails between all the parties. It’s a frustrating process for all, not least the house seller.
As with most blockchain applications, Coadjute aims to create a shared source of information. It performs two core functions, including sharing documents such as the sale contract and enabling communication. Each house sale has a deal room, similar to a WhatsApp group where the participants can interact.
The idea has been in the works for over three years since the UK’s HM Land Registry successfully tested the use of blockchain technology in the housing market.
“HM Land Registry ran the Digital Street initiative in 2018 to encourage industry to work together to improve the efficiency of the market,” said HM Land Registry Deputy Director Eddie Davies. “We’re delighted to see Coadjute take this work forward and are happy to be working with them now as they bring their Network to market.”
Coadjute wants to expand the solution to mortgage settlements and movements of funds, and it previously conducted trials with leading banks such as NatWest and Barclays.
While most enterprise blockchain solutions involve creating a consortium, Coadjute has a different route to market as a Software as a Service (SaaS) solution to which other real estate software platforms connect. That means the end-users, such as estate agents, still use their existing software.
Seven leading software companies in the UK housing market have partnered with the platform, including Dezrez, MRI VTUK, Reapit, AV Rillo, Osprey and Redbrick. Each software company hosts a node on the blockchain network, which was developed using R3’s Corda enterprise blockchain.
“We have seen other industries introduce market-level networks including Tradelens supply-chain network, Marco Polo trade-finance network, B3i insurance network and the Contour digital trade network”, said Dan Salmons, CEO Coadjute.
“Now it’s time for the property market. Coadjute’s enterprise-grade distributed ledger technology now enables property market participants to collaborate and transact directly, providing a shared source of truth whilst managing data sharing with strict privacy controls”.
Coadjute completed a multi-million round of funding at the end of last year with participation from R3’s CEO. Previously the company inked a deal with NatWest Bank to monitor the house buying process through an app.
An in-depth look at Coadjute can be found here.