Technological progress is inevitable, and it is essential to be aware of the future that is increasingly closer to our reality, to everyday life, as is the case with Blockchain, which has multiple uses, one of them in the financial sector.
In the Legal Perspectives Program, produced and conducted by a server, interview the CEO of 100 Bricks, Hugo Blum, where he shares what the term is about "Blockchain" and how they use it in your company.
WHO IS HUGO BLUM?
I am CEO of 100 Bricks, which is a platform fintech y protech, which allows anyone to buy 100 percent real estate online and be able to start living on their income, thanks to the necessary legal framework, having formed a trust that could be managed electronically, and also thanks to the advanced electronic signature issued by the Secretary of Tax Administration (SAT), and thanks to the technology of Blockchain.
WHAT IS BLOCKCHAIN?
It's something interesting, we on the platform, we hardly mentioned that we use Blockchain, because from our point of view, the Blockchain It's like cell phone networks, we don't think you need to understand it to use it and benefit from its use, but it is necessary to understand it from how it legally helps us, and how we implement it.
I tell you we hardly mentioned the word "Blockchain" because last year, the terms were very confused, "Cryptocurrency" with Blockchain. The first difference worth explaining is the cryptocurrency that gives life to Blockchain es "Bitcoin" almost ten years ago. This group of people or person tries to create a currency that is not issued by a centralized institution, a central bank, as we well know the peso and the dollar is issued by a Central Bank or the Government, but this person wanted to make a digital currency that it was not physical, and that there was not a single, regulatory entity, issuer of this money, because the theory is, every time more currencies are issued, it causes greater inflation.
So the million dollar question was, How to deal with an asset or a digital currency that was unique and that nobody will regulate? That's why the Blockchain.
El Blockchain It is nothing more than a protocol where operations are recorded. There have also been many trends to raise the word, technology, and say that everything will be Blockchain, and that all the solutions and problems of the world are obtained with this.
I like to land it and put things in their proper measure, then Blockchain It is only a record of operations that has special characteristics, it is a record of operations that is not centralized, that is, it is decentralized, nobody controls it, and in which you can record operations that cannot be altered. What gives power to this type of records is that you can register unique and unalterable and public operations that is important.
WHAT USE DOES 100 BRICKS TO BLOCKCHAIN?
I tell you the story, at the time we wanted to buy a property and we saw that it was a bit inaccessible to buy a commercial space, we waited for a time to save, the time came when we had the money, two years later, and the property was almost worth double, then we said, there should be some easier way for people to be able to buy real estate and be able to start generating and protecting their assets, and by making smaller access tickets, it was when we explored the possibility of putting a property into a bank trust, and that this trust issued some shares or fractions, and that those fractions could get into a platform for purchase and sale, in this way, the dream was to be able to fractionate these properties, but at the same time, give them legal guarantee and legal protection to those who could buy these fractions.
We were exploring the possibility, and it turns out that what we wanted to do, has already been done many times in life, but in a traditional and offline, that is, in physical.
Bank trusts exist for many years, and the parts we are talking about, that we tell them "bricks" they are actually certificates of real estate participation, they are CPIs that are credit titles, which exist almost eighty years ago.
We do not create trusts, electronic signatures, or CPI's, all we did was join all this into a platform.
Then, How does the Blockchain issue go with the legal issue? Where is the interaction? Normally, what would be done in the Trust Bank is to put a property, be written inside the trust, and then the Trust Bank along with the notary prints the physical titles that are the CPI's, and those titles can now be changed hands and endorsed in the traditional world, offline.
What we did is to be able to issue those digital titles, and that the parties signed it with their FAITHFUL (Electronic Signature), as you well know the FAITHFUL of the SAT is a signature that is worth the same as an autograph signature from the point of view even more . The challenge here was that these titles could be done perfectly, with the electronic signature and with the technology that is already used to make digital documents, the problem was, How can you guarantee that a digital title is unique? And we see it in many cases, for example, on electronic invoices.
The electronic invoices at the time that you add the CFDI (Digital Tax Proof by Internet) and the XML to your email of an invoice, you can easily download, copy and paste them, and so you already have two, three or ten equal invoices , and all are original, the question is, How can we make a digital document that has the characteristic that we did not question before in the physical world, that has the characteristic that is unique, that it can be presumed that it was not altered, and that it can be presumed that it was signed by who says that signed? So those are characteristics in which the Blockchain, to issue a credit title for the first time, in digital form, so that we can presume that it is unique, that its content has not been altered and that it was signed by the competent authority, and finally having those characteristics, which may be endorsed and transferred, then what we did was to issue an 100% digital credit title that could be endorsed, then we realized that we were the first company that has done it.
In summary, we comment on how 100 Bricks implements the Blockchain in what it sells digitally, is that like a credit title, such as a promissory note, when you sign it you have the assurance that you signed a single document, and that the document to whom you give it, knows that no it is altered, that he signed it, and that it can endorse it, and that it can also break it when the relationship is over. It is a bit the same that allows us the Blockchain with these titles, to be able to issue the title, that is unique, that is unalterable, irrepudiable (that cannot be said by the person who did not sign it), and finally that it is endorsable and transferable, that is how we use the Blockchain in our company.