The city of South Burlington, Vt. has teamed up with Propy, Inc. — a global real estate marketplace with decentralized title registry — and recorded the first real estate deal utilizing blockchain. The partnership has created a whole new way for cities and states to do business that could soon become a global standard.
Propy is a blockchain-enabled platform that not only allows for a digital transfer of ownership but also conducts transactions via their online and mobile real estate property store. This enables the platform to handle a variety of cryptocurrency payments.
According to Forbes, blockchain is a “distributed ‘chain’ of validated transactions secured through cryptographic hashing”. It is best known for its use for securing and recording Bitcoin or other cryptocurrency transactions.
Blockchain can eradicate corruption and heighten security for real estate transfers, and governments have been slowly adopting the technology. Here’s why this matters:
The Blockchain Technology Domino Effect
Gearing up for the very first blockchain transaction required much bureaucratic effort, but this first “done deal” makes it much easier for the rest of the 49 states to iterate the process. In fact, Arizona and Colorado are among the states vying to invest and get ahead in blockchain and cryptocurrency. This partnership between a government agency and blockchain company has the potential create a disruption in the real estate market. The utilization of blockchain to record real estate conveyance documents just might create a snowball effect of more business and state agency collaboration via blockchain tech.
Government Adopting Blockchain and Cryptocurrency
This is one of the first times a government has officially sanctioned the use of blockchain, opening the floodgates for the technology to add security, speed and slash corruption in not only the real estate sector but across all industries. These moves mark a positive trend in government agencies beginning to embrace cryptocurrencies like Bitcoin and blockchain tech. With the vast potential of these technologies, it makes sense why many government leaders and agencies are investigating it. Countries across the globe are testing and experimenting with blockchain tech, according to Deloitte, and investigating how it can be used by their governments internally.
You’ll Be Able To Buy Your Next House With Cryptocurrency
As local governments begin to accept blockchain, they’re also legitimizing crypto as an alternate currency. As a result? We’ll soon be able to conduct transactions with what was once called a “fringe currency.” With more than 100,000 merchants worldwide accepting bitcoin as a currency, it’s not hard to imagine that you’ll soon be able to purchase a home with cryptocurrency. According to CNBC, all you need to buy a house with cryptocurrency is to have both the buyer and seller agree to exchanging bitcoin for the home.
Clearly, it is only the beginning for blockchain tech and cryptocurrency. Government agencies are already planning for the future and bracing for further disruption in digital transactions, currency, and security. While the real estate industry is seeing immediate integration and changes with blockchain, other industries are sure to follow. Be on the lookout for even more public implementations of this technology and blockchain news in 2018.