It Is Now Possible To Buy A Home Using Blockchain Technology Thanks To Propy
The cryptocurrency and blockchain-based startup Propy announced that it is selling the first home on the blockchain in California. According to Decrypt, the company was able to sell a home in Daly City in San Francisco’s Bay Area for $917,000 using the Ethereum (ETH) platform.
According to the CEO of the company, Natalia Karayaneva, Blockchain is the optimal way of streamlining the process of purchasing a home. Karayaneva has a master degree in urban planning at Oxford University and she found a real estate development company in Bulgaria.
She commented that she saw the frustrations that buyers had trying to invest overseas. In general, the process of buying a property is very difficult. In order to change that, she launched Propy back in 2016. This allowed investors to make the whole process much faster and easier for buyers and sellers.
The world’s first real estate sale by the company was performed on September 2017 using the Ethereum blockchain. Michael Arrington, TechCrunch founder was the buyer. He is also one of the advisors of this blockchain firm. At that time, he purchased an apartment in Kiev, Ukraine, for $60,000. The interesting thing is that the process was done remotely and during a single weekend.
Blockchain technology is being used to improve the real estate business reducing fraud costs and making the whole bureaucratic process much easier. There are several companies that are already using smart contracts to enable property transactions, including ShelterZoom and Harbor.
At the same time, the Dubai Land Department was the first around the world using blockchain technology to track real estate contracts. After it, they were linked to the Electricity & Water Authority of the city. They were also linked to other billing authorities. The decision to embrace this technology and project is related to the fact that Dubai wants to become the world’s blockchain city.
Natalia Karayaneva commented:
“Over the past two decades, Silicon Valley has become one of the world’s hottest property markets, denoting the perfect example for a market where high levels of trust and transparency throughout the transaction process are paramount.”
She went on saying that the utilization of blockchain technology is optimal to streamline the lengthy and non-transparent process of buying a home. In the future, they want to facilitate hundreds more of these transactions.
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