Bergen County, N.J. — part of the New York City metro area — has signed a five-year deal with Balcony to use the decentralized digital ledger.
The project will “digitize and bring 370,000 property deeds on-chain,” according to a statement from the company, which focuses on blockchain-based land record management.
That represents about $240 billion in value, Balcony said, with those properties accounting for $500 million in annual property taxes. The project involves 70 municipalities.
The effort, via a platform powered by Avalanche, will eventually cut deed processing time by at least 90 percent, the company says, while also reducing chances for fraud and title disputes.
“This is a turning point for real estate and public record systems,” said Dan Silverman, CEO of Balcony, in the statement. “By working with the Bergen County Clerk’s Office to bring all property records on-chain, we’re demonstrating how secure, distributed systems can replace outdated infrastructure and deliver real-world value for both governments and the public.”
Balcony says that its technology recently “uncovered nearly $1 million in lost municipal revenue, previously hidden due to incomplete or outdated records,” in Orange, N.J.
That data point underscores the potential appeal of this type of blockchain tool for local and regional governments.
Meanwhile, across the Hudson River from Bergen County, officials in New York City are working to make the Big Apple a hive of government-backed blockchain activity.
Mayor Eric Adams, recently speaking at the city’s inaugural crypto summit — blockchain serving as a foundation for digital money, of course — announced a “digital asset advisory council” and said the city would consider using blockchain for vital records, and seek to attract more blockchain innovators to the city.
Blockchain also has had real estate-centered tryouts in such places as Vermont and Cook County, Ill., which includes Chicago.
The appeal is pretty simple, at least according to a report earlier this year from McNees Wallace & Nurick LLC, a law firm active in real estate, privacy and data security, and government services.
Blockchain promises more transparency in ownership transfers, the report stated, as well as fewer human errors during real estate transactions.
“The automation that comes with smart contracts on the blockchain also could eliminate delays in the recording process and make it easier to search for recorded documents,” the law firm said. “There no longer would be a need to manually track a ledger and compare one book and page reference to the next.”
Such messages are resonating with officials, including those in Bergen County.
“By digitizing property records, we are making the process simpler, faster and more secure for homeowners, businesses and future generations,” said John Hogan, the county clerk, in the statement from Balcony. “Our plan is to use this forward-thinking approach to enhance transparency, reduce delays, and protect against hacks, ensuring that Bergen County remains a leader in innovation and service to our community.”
