Applying for a mortgage might be one of the hardest things about buying a home. It takes longer than, say, applying for a credit card, and it’s a lot more expensive for homebuyers thanks to processing fees. But according to a recent Moody’s study, blockchain technology — the same encrypted record-keeping system behind Bitcoin — could save the mortgage industry $1 billion every year by cutting down on fees and redundant audits every time the application changes hands.
Why does that matter for homebuyers? It could also bring down the cost of applying for a mortgage.
What’s blockchain again?
Blockchain is a record-keeping technology, most notably the one behind Bitcoin, that keeps digital information (the blocks) stored in a public database (the chain.) It’s also referred to as distributed ledger technology (DLT.) Each block stores information about the transaction, participants and data to distinguish it from other blocks. A DLT offers users transpare… Read More