The Escrow Locker
How a multi-signature locker provides greater security than existing title processes. It's the key to the integrity of the Digital Title Certificate process.
The concept of an Escrow Locker within the Title App introduces a secure and efficient way to handle transactions involving digital title certificates (DTCs) which are utilitarian NFTs (non-fungible tokens). Each DTC consists of a Parent DTC (retained by a governing agency) and a Child DTC (traded between wallets during property sales).
When a property is sold, an Escrow Locker is created, and the Seller places the Child DTC in the locker. The Buyer, Seller, and a Third Party (e.g., law firm or escrow company) agree on the required number of sign-offs for the DTC transfer. Biometric ID checks are performed during Escrow Locker setup and DTC release to ensure the involved parties' identities. This replaces the traditional notary system, mitigating fraud risks. Currently the item being traded between the parties is the DTC, but the Escrow Locker can also be used to transfer all of the funds related to the transaction.
The Escrow Locker also facilitates the addition or deletion of changeable files within the associated DTC's property record file. For certain actions/documents affecting property titles, an Escrow Locker is mandatory, with all parties confirming the existence of the document. This might include something like a recorded easement or loan encumbrances. Modification of Escrow Locker rules allows flexibility, such as involving entities other than owners for specific documents like mechanics liens.
Title App generates revenue by creating Escrow Lockers and selling Escrow Locker validation tokens to businesses offering Escrow Locker services to their clients. Optional features like Title Insurance, ruled by smart contracts within the Escrow Locker, can be attached based on jurisdiction and risk levels. Fees for authorization tokens are envisioned to be small (around $10 per token), while setup costs for Escrow Locker creation are designed to be reasonable, even potentially free. Although initially focused on real estate, the Escrow Locker concept can be applied to various assets, including cars, boats, contracts, cashflows, or any exchanged property of value.
In summary, the Title App's Escrow Locker brings enhanced security, authentication, and efficiency to property transactions, revolutionizing the traditional notary system while providing flexibility for various assets and optional insurance features.