An apartment in Ukraine has become the first property to be sold and purchased using the only Blockchain. The property is flat with a price of $ 60,000 in Kiev, Ukraine. The transaction was made entirely through Etherchain using its ether and smart contracts. The San Francisco-based real estate company, Propy, which uses cryptocurrencies as a means to conduct transactions with properties made this transaction possible.
Instead of the paper contracts and fiduciary money exchanged, TechCrunch founder Michael Arrington bought the house without any rush and without visiting the country, with the help of smart contracts and with clear advantages like the transaction that is completely transparent, as well as the elimination of contracts in paper, reduction of the annoying bureaucracy and times of this; obviously eliminates the costly fees of lawyers and professionals that have been needed so far in addition to the ease of acquisition for foreigners.
The sale was carried out last month, but the transaction was announced last week by Propy. This commented Natalia Karayaneva, CEO of Propy:
I am delighted to see Propy leading the task of putting the real estate sector in the chain of blocks, bringing transparency, efficiency and security to an industry traditionally loaded with bureaucracy and more bureaucracy. Ukrainian real estate is very affordable and will soon grow rapidly.
Karayaneva further believes that this transaction could be a further precursor to the attempt of foreign investment in the Ukrainian real estate market, in particular China, which have strict capital restrictions, because they can only move $ 50,000 per person outside the country, which is an additional difficulty for Chinese citizens when it comes to moving cash outside their borders.
Ethereum co-founder Joe Lubin spoke and stressed the benefits of this new type of network infrastructure. Using etherchain technology transactions are safer, more open and avoid middlemen.
“There will not be a single powerful entity that controls the system or controls entry into the system.”
Propy is working with the Ukrainian e-government agency and the justice ministry but is currently in the midst of talks with Dubai and California to change the laws and regulations necessary to enable more fluid and transparent transactions using this technology. Propy is not the first to attempt to use the blockchain. The REX global real estate team is creating a global property listing service to connect sellers, buyers, and agents in several countries. ATLANT, based in New York, is experimenting with a form of ownership backed by Blockchain, where many people can own a property in the same way that shareholders are joint owners of a company.
Even so, and as Propy recognizes, these transactions, for the moment, require the participation and approval of the government:
“People can do property exchanges, anything they want, but without a government that enforces them, it makes no sense”
This is because real estate transactions must be recorded in an official ledger that is legally binding and recognized by all parties. In Spain for example, there is the Property Registry.
But we did not end here. Real estate investment firm London Wall is selling its six-story mansion in Notting Hill, London, England for £ 17 million with the condition that the owners of the company will only accept the Bitcoin digital currency as a form of payment, reports The Standard.
The clear bet of the real estate market in the cryptocurrencies only has made that to begin.