A new efficient and transparent era of real estate transactions could have emerged upon us with the first in history of blockchain technology sold property.
Mark Ginsburg – Developer from Ukraine, has sold the apartment to co-founder of TechCrunch – tech news site, for $60.000 through automated self-executable smart contracts that are made possible on the Ethereum blockchain.
This is another first and big step for blockchain adoption, as with its use the paper contracts work will be eliminated included with lawyer fees while transparency will be top-level.
Arrington was supported by Propy – a real estate startup and decentralized title registry, on buying the estate last month while it was announced last week:
“I’m thrilled to see Propy leading the charge in putting real estate on the blockchain—bringing transparency, efficiency and security to an industry traditionally fraught with red tape and bureaucracy,” said Natalia Karayaneva, CEO of Propy. “Ukrainian real estate is very affordable, and the Ukrainian market will soon be growing dynamically.”
The CEO of Propy has very much faith in the events outcome as many more foreign investors could be led by this to the Ukrainian real estate market, for example – investments from China as the capital strictly controls only $50.000 per person concluding with difficulty for Chinese traders and investors with major capital to move cash outside.
“As far as I can tell this is first time, or one of the first times, a real asset other than a crypto currency had transferred on blockchain,” Arrington said on Twitter.
The blockchain itself during the last month has taken the mainstream train upwards growing to the second largest block-network with $30 billion market capitalization and a price/token at $308.19.
Ethereum co-founder Joe Lubin recently told The International Business Times about the benefits of this new type of network infrastructure. Using blockchain technology, he said, transactions are safer, more secure and bypass fee-collecting gatekeepers.
“There won’t be a single powerful entity that controls the system or controls gatekeeping into the system,” Lubin said.
An official partnership and work-together has been initiated by Propy and the Gov of Ukraine to launch the blockchain title registry. The automated real estate purchase has been entered by the utilization of Ethereum blockchain – the startup believes.
“This is only the beginning,” Karayaneva said. “With this transaction, we’ve broken first ground in putting the $217 trillion real estate market on the blockchain.
“We’re starting with Ukraine, but over the coming year we plan to facilitate real estate transactions with the use of token in California, Vermont and Dubai.”