March 26, 2018
by Sharon Moran
Conducting real estate transactions entirely on the blockchain might be much closer than we think. The Real Deal: New York Real Estate News recently reported that the first known U.S. real estate transaction conducted on the blockchain with government approval occurred last month.
The deal, which was only worth $10, was the result of a pilot program between Propy, a San Francisco-based startup and a county in Vermont, a state with a population of less than 700k. The transaction serves as a demonstration of how property records would be recorded on Ethereum’s blockchain.
The deal is a practical example of what blockchain proponents claim can be accomplished through the use of distributed ledger technology and executeable distributed code contracts (EDCC) aka smart contacts.
Propy, ICO, and ERC20 Token Price
According to coinmarketcap.com, Propy’s ERC20 token PRO is trading at $.89. Propy raised $15 million from over 6k participants last year. The current real estate market has a lot of inefficiencies due to the dependency on intermediaries needed. A decentralized system based on blockchain technology can execute smart contracts at various needed points in the transaction process, saving time and money.
How The Blockchain Can Disrupt the Real Estate Industry
In a Forbes earlier this year, contributor Matthew Murphy highlighted three ways that blockchain technology could transform the real estate industry this year. He emphasized that blockchain technology could eliminate fragmentation in MLS property data and provide a more comprehensive view of property information straight from the source. The blockchain could also eliminate the current difficulty with title records; title records are stored at the local level and offline. Murphy emphasized that the third benefit the blockchain offers to the real estate industry is improving and transforming the efficiency and security of transactions.