Blockchain technology has found many use cases in the real estate industry. This became obvious when the attention shifted from cryptocurrencies to blockchain application in other sectors. Many well-known brands are creating solutions that show the benefits of working across peer-to-peer networks. A global real estate platform, Propy, recently used a blockchain-based platform to carry out transactions for residential properties. Yesterday, Propy announced that it has completed its second deal to be recorded on the blockchain.
Propy Settles Property Deal On The Blockchain
The property was sold for $917,00 in Daly City, California. While the payment was made in USD, the transaction was conducted on a blockchain-based platform. Even if the industry is still in its early stages, blockchain has proven efficient in ensuring trustworthiness and transparency in the real estate industry. This is especially useful because the home buying process isn’t as transparent as it ought to be according to the CEO of Propy, Natalia Karayaneva.
The first blockchain-recorded transaction by Propy was for 10 acres of land in Southern California. This transaction was done in BTC. It was on the headlines for weeks and it gave the public the opinion that Propy was only interested in making real estate transactions in cryptocurrencies. Speaking to Forbes contributor, Rachel Wolfson, Karayaneva said:
“Our mission at Propy is to automate the buying process in the real estate industry no matter how much is involved. We have integrated many money transmitters on our platform that allows us to accept both fiat and cryptocurrencies.”
While this transaction is the first that was submitted through a blockchain, the company recorded many deeds on the Ethereum blockchain recently. This transaction was verifiable and anchored on DLT thus allowing all the parties involved to have a full view of all the stages of the transaction process. Typically, the process would have required multiple emails and face to face conversations before the conclusion. Using blockchain technology, however, everything was done within 45 minutes. However, the entire process took about 10 days to complete. Information about payments made to Propy are available on the blockchain. This eliminates the risk of wire fraud among other things.
Bitcoin (BTC) Price Today – BTC / USD
The platform allows a buyer to view the entire transaction process along with other participants involved. The closing stage was done on Propy’s online platform and it involved the buyer, the seller, an agent from Propy and an escrow officer. After the completion of the paperwork, the deed was recorded on the company’s Blockchain Title Registry.
Universal Transactions Are Possible With The Blockchain
Typically, the real estate process takes place on different systems. This is one reason why it always easy to manipulate and defraud people. The blockchain system Propy used allows the entire process, including communication, to be done on one platform. The vice president of Propy, Kate Fomina said:
“This transaction is evidence of significant advancement in the industry not just for the future of real estate transactions but for the promotion of blockchain technology. This system eliminates the chances of wire fraud, doesn’t require siloed systems, and gets rid of many problems that may occur during the real estate transaction process.”
Many people believe buying properties with cryptocurrencies is the only use case of blockchain technology in the real estate industry. However, this transaction by Propy has proven that this isn’t the case.
Do you think blockchain technology has the potential to revolutionize the real estate industry? Share your comments.