The core problem being addressed by the recent patent under the title "Blockchain-based shared appreciation note" (Patent number: US11741539B2), filed by the company Homium, revolves around home loans. Under the present systems, Shared Appreciation Notes (SANs) suffer several drawbacks, mainly due to the elaborate process through which they must go for transaction to be completed. The exchange of homes and loans involves a lot of uncertainties, especially when the value of the home decreases over time. Moreover, these transactions are not easily transferrable, verified, or liquidated, a major drawback given the speed and efficiency expected in today's business world.
Such problems in the home loan field often create a sense of insecurity among homeowners and buyers, fearing potential loss if the property value decreases. It also gives rise to a complex process involving a third party for the transaction, leading to prolonged transaction time and added costs. The inflexibility and potential risks involved in the system can deter many from taking a step in this significant and sometimes, essential aspect of life.
Interestingly, the revolutionary patent Homium offers a digital solution that promises to address these issues. It comprises a smart computer system that utilizes blockchain technology, a highly secure method of maintaining and storing information. It would create and share digital tokens representing the homeowner's loan agreement.
These tokens are standardized assets deriving their value from the combined value of all committed equity, making each token identical to the other. They stand as a reliable representation of home equity on a public blockchain, making the transactions much more secure and efficient. The system remarkably leaves no room for uncertainty as it automatically checks the value of the assets these tokens are based on, decides the token's cost, and delivers these tokens to the individuals once certain criteria are met.
When envisioning a world where this problem has been addressed, imagine the ease and trust with which people would enter into home loan agreements. Homeowners and buyers could rest assured that the value of their loans is secure and tamper-proof, thanks to blockchain technology. One of the most significant changes would be the dramatic reduction in the involvement of third parties associated with transactions. This means lesser costs and quicker transactions, turning the experience more user-friendly and cost-effective.
Picturing real-life examples, if John wishes to buy a house, he wouldn't have to worry about losing money or getting stuck in a long, tedious transaction process. Instead, he could be confident in the security that blockchain technology provides and the value that these extraordinary tokens bring in.
It's imperative to note that while this innovative concept of using blockchain technology to better the home equity field has been patented, it is not a guarantee that it will emerge in the market soon. This indeed is a development that holds the potential to bring significant improvements in the way we deal with home loans, making the transactions more transparent, secure, and efficient.
This development underscores that the world is closer than ever to embracing digital solutions for various sectors, including home equity. Simplifying complex processes through advanced technology is indeed becoming the new normal. This patent from Homium is yet another step in that direction.
P.S.: The patent has been granted, but this is no guarantee that the deployment of the product or technology will happen in the market as it might depend on several factors including but not limited to company decisions, market demand, etc.