Could Blockchain Be Used for Association Recordkeeping?
You may have heard of blockchain, the technology that’s at the root of cryptocurrencies such as Bitcoin—but have you heard about how blockchain could help with association recordkeeping? If you’re tired of the time-consuming, complex process of maintaining digital records for unit owners, blockchain may one day be the solution.
The Challenges of Digital Recordkeeping and How Blockchain Can Help
Digital documents are the norm these days when it comes to record keeping, but they have some drawbacks. While the authenticity of paper documents can often be verified through signatures, embossed seals, and watermarks, the authenticity of digital documents cannot be so easily verified. Digital documents can be modified without obvious signs of tampering. Although there are methods of identifying manipulation in digital records, they are expensive and often involve a third party which creates security concerns.
Blockchain simplifies this authentication process. Even when two parties don’t know each other, blockchain helps verify the integrity of the digital assets involved in a transaction. How? With blockchain, authentication is embedded into the digital document itself. It employs a closed loop tracking system to make sure the document is not altered. This is similar to a file-sharing system but with added security.
Blockchain uses a code known as a block that’s composed of numbers and letters. Because the block is encrypted, the record’s owner maintains control over it without having to give up personal identifying information such as their Social Security number. Every time a document changes such as when it’s signed by a new party, there’s a new block added to the network, and the revised file is automatically synced so everyone has access to it. Because of this, it’s easy to keep track of document revisions over time.
Blockchain uses a ledger for keeping track of all record changes. This ledger is distributed to all computers in the chain rather than being controlled by a single entity. Documents with matching blockchain signatures can remain, but if a document has a signature that does not match, it won’t be accepted. This protects against fraud.
The Benefits of Using Blockchain for Association Recordkeeping
There are numerous benefits to using blockchain for recordkeeping at your association! But there are a few in particular you’ll want to definitely consider when deciding whether or not it’s right for your HOA.
It May Be More Efficient
If your association is like most, you’re probably always on the hunt for ways to improve efficiency. Using blockchain for document transactions is one way to cut down on turnaround time when it comes to examining digital documents. Instead of everyone having to wait multiple days for all the necessary signatures, blockchain can get the process down to mere seconds!
It Eliminates Many Security Concerns
Blockchain protects against fraud. There are also fewer people that need to be involved in the exchange of digital documents. Because of this, there are fewer points of vulnerability. You and the members of your association can have greater peace of mind!
It Saves Money When It Comes to Verifying Authenticity
Blockchain eliminates the need for legal professionals or auditors to verify the authenticity of certain documents. There’s no expensive service to pay for. That cuts down on operating costs for your association!
Improve Your Association by Utilizing Blockchain and LM Funding
With all these benefits in mind, utilizing blockchain for your association is definitely worth considering. Something else you can do to streamline your operations and protect revenue is working with LM Funding. Our special service turns your association delinquencies into cash so you can stop paying collection-related legal fees. To learn more about how it works, email firstname.lastname@example.org or call (866) 235-5001 today!