With the approaching obligation of the bid log, online bidding on a property is also indirectly becoming mandatory. But how will the reliability of bids, bid logs and interim communication be ensured? Eerlijk Bieden is the first party to apply blockchain in real estate brokerage. In this blog you can read how exactly this works and what it means for you as a consumer.
Is an offer really an offer?
It seems bulletproof right now: a fully online bidding platform where bids on homes are collected, buyers are assigned, etc. After all, this would be the solution against shady real estate agents. But moving to a digital buying process also brings many new risks. For example, how can you be sure there are no fake bids, how can you guarantee that the bid log has not been tampered with, and is the online bidding platform itself really as independent and impartial as they claim?
These - and probably many more future questions - prompted hallmark and software vendor Eerlijk Bieden to investigate how the system could become 100% reliable and autonomous. There had to be a solution for possible fraud by consumers, brokers and the administrators of an online bidding platform itself. Should unwanted adjustments occur, this should always be reflected in a paper trail.
Blockchain in brokerage
Eerlijk Bieden has now set its sights on a popular contemporary technology: the Blockchain. Do not be alarmed, the blockchain technique is unrelated to the complete chaos prevailing in the crypto market this week. On the contrary, the technique is even well suited to setting up a completely foolproof process based on cryptography.
Eerlijk Bieden has developed a technique in which all web pages, documents and bid logs are secured under the new principle: Crypto sealing. Simply put, this means that with every new action by a person or system, a special seal is created. This seal guarantees the integrity and origin of a document, mail or bid log, for example.
Only the person entitled to the document has a "secret key" to view the seal. This way we can guarantee that the right person always has the original document. Because the key is generated automatically, it cannot be cracked to modify the document. The broker or administrator can therefore never just change the data unseen.
Importance in disciplinary law
Blockchain in brokerage will play an increasing role in the future. For example, when a wrongdoing is proven using the bid log, evidence will likely need to be requested in order to initiate proceedings. Previously, printed versions of e-mails and WhatsApp messages still sufficed, but these are increasingly easy to manipulate these days. Because the bid log is and will remain completely anonymous, blockchain technology will have to monitor the reliability of all information.
This makes it many times easier for the disciplinary judge to rule on the basis of incontrovertible evidence. After all, it is no longer necessary to look at whether the evidence is correct, only what it says.
In that case, the consumer also no longer needs to knock on the door of the operator of the online bidding platform, but can independently prove that the proof is reliable by means of the seal. For example, Eerlijk Bieden always sends a confirmation of a bid. For example, should a broker claim that a bid never arrived or had other details, the consumer can very easily prove otherwise by filing the sealed confirmation with the disciplinary court.
About Eerlijk Bieden
Curious about our continued application of Blockchain in brokerage, or curious about our other innovative solutions for the housing market? Then be sure to take a look at the pages on our bidding software, or feel free to email any questions to email@example.com.