We take a mortgage on the blockchain
As the famous Alexander Pushnoy said– "eeeeexperiments are on the air." Do you know why we decided to start another article with a quote from the Galileo program? It's simple – in Russia they decided to conduct an experiment, from December 1, 2021, Russians can apply for a mortgage on the blockchain. This decision was made in order to shorten the time for registration of transactions and simplify the execution of contracts. The deadline for the pilot project was allocated until October 2022. After the results of the experiment are summed up, the State Duma will make a decision on the regulation of cryptocurrencies in the country.
A minute of statistics: According to preliminary data, in 2021, Russians signed mortgage contracts worth 5.5 trillion rubles. This is 27.9% more than in the whole of 2020 (4.3 trillion rubles). At the same time, mortgage costs amount to 2-5% of the cost of the purchased housing.
The Masterchain system
The Masterchain system was created by the largest IT companies in Russia, which created the Fintech Association under the auspices of the Central Bank of the Russian Federation. The system itself was developed on the Ethereum network and certified by the FSB, taking into account the norms of cryptographic data protection.
Masterchain is designed for registration for electronic registration of mortgage transactions in Rosreestr and transfer of contracts to the depositories of banks, which in turn greatly simplifies the procedure of mortgage lending.
Lending procedure:
* A mortgage agreement with a digital signature is uploaded to the blockchain.
* The system automatically registers the smart contract in the bank's deposit.
The transfer of mortgage lending has solved a number of problems with mortgage issuance:
• Firstly, the transaction period has been reduced from 9 days to 1.
* Increased data storage security.
• Any changes in the contract are strictly confirmed by all parties to the transaction.
* The parties to the transaction are identified by the operator - "Distributed Registry Systems".
Starting in 2020, the Masterchain network entered the Sberbank lending base, and in 2021 Gazprom and VTB will issue mortgages on the blockchain.
Who is involved in the project?
The initiator of the digital mortgage was the Government of the Russian Federation, and the Bank of Russia was appointed responsible for the execution. Rosreestr, the Ministry of Finance, and DOM are also involved in the project.RF, Fintech.
The principle of operation of the "Masterchain".
* Registration of participants through simplified systems.
* Organizations that have received confirmation install the software on their side.
• After signing the contract, the bank sends the contract to Roseestr.
* The state body records the document with a digital signature and uploads it to the network.
Advantages of mortgages on the blockchain.
* Fully transparent transactions.
* Exclusion of intermediaries from the process. Smart contracts fully control the terms of the transaction.
* Data security. Thanks to the technology that allows you to store data on geographically distributed nodes, the risk of information loss is minimal.
Instead of a conclusion.
A mortgage is a closed system that includes all: from developers to bank employees. A mortgage on the blockchain is able to minimize the circle of intermediaries involved in the transaction. Transparency of transactions, which are fully regulated by smart contracts, guarantee strict compliance with the terms of the contract by all participants in the transaction.
Do you think the project will be able to flourish in Russia?
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