The company that extended from a student loans to full-service banking, it turned its eyes into one of the trendiest subjects among big Wall Street banks: Blockchain.
While the most attention is led by Bitcoin with the highest valuation compared to any blockchain asset – SoFi believes Ethereum has a much greater potential and future.
That’s because bitcoin, although designed to be used as a currency, is not a very practical one. While in contrary Ethereum blockchain asset, has the ability to be used to facilitate any sort of financial transactions – as believed by SoFi CEO Mike Cagney Said on Wednesday:
“If the dollar didn’t exist, and all we had was Bitcoin, we would be fine. But the fact that it trades [in dollar terms] and its value fluctuates so significantly makes it nearly impossible…to use as currency,” Cagney said “The blockchain on Ethereum, on the other hand, has absolutely fascinating infrastructure applications.”
As considered an upstart cryptocurrency – Ethereum’s value and market share increased so swiftly just this year where it almost reached Bitcoin Itself. Pushing that surge is the hype of the different application that Ethereum allows its blockchain technology to be used and develop endless of other projects – as the CEO Cagney described.
In particular, SoFi, which is valued at more than $4 billion, is exploring a way to use blockchain to revolutionize title insurance, a standard requirement for many home buyers.
As SoFi started to get into the real estate industry in fall 2014, Cagney explained that the insurance process is very old-fashioned which includes the process of checking property ownership records to determine whether a house can be rightfully sold. Keeping this in mind the $4 billion company SoFi wants to change the era of the insurance title using blockchain technology.
In place of the, SoFi would like all the paper records to be transferred to the blockchain, in which the transaction log could be securely stored and on top of being very easy to access:
Cagney continues: “where you have absolute truth in terms of what those liens are and what that information is,” Cagney explained. In order to generate revenue to fund the development of such a system, he suggested, the information could be encrypted, and SoFi could sell the key to unlock it”
Until this very moment, the greatest difficulty for SoFi to realize its revolutionary property check, is to convince a county government to fully change over to digital currency system:
“If you run [both systems] in parallel, the blockchain or the Ethereum aspect of it is not enforceable, because [users] can revert back to the paper trail,” Cagney said. “So you need to find a county that’s willing to do a complete conversion onto a distributed network, and when you have that, there’s an interesting application there. And that’s a multibillion dollar industry.”
Details are waited to be revealed, while it’s very fortunate for SoFi because it has already found a county open to do it – even though there’s no detail which it is.