Blockchain Properties: bitcoin tech to verify property transactions
One of the major use cases for the distributed ledger can be identified as “blockchain properties“, or the way to register and verify property transactions on the blockchain.
A few days ago, the first government to do so was Georgia that signed an agreement to use the blockchain to verify property transactions by using the well-known company BitFury services.
This is the first time that an American government uses the distributed ledger to prove and authenticate national operations using this disruptive technology.
Government on Blockchain
The private blockchain ledger that is an alter-proof ledger is also provable using the core bitcoin Blockchain that is in the public domain.
The Georgian National Agency of Public Registry and BitFury wrote a memorandum of understanding trying to find how to extend services to new land titles registration, property demolitions, mortgages, purchases and sales of land titles, rental and notary services.
There are a few other ideas focused on Blockchain land title services also in Sweden, Honduras and Cook County in Chicago which are being developed by ChromaWay, Factcom and Velox too.
Magazines also revealed that Peruvian Economist Hernando de Soto is involved with the Georgian Blockchain properties project too.
De Soto, in his book Mystery of Capital, estimates that there is “dead capital” of $20 trillion globally, consisting of buildings and lands without legal title.
Blockchain Properties on mobile
Tea Tsulukiani, Georgia’s Minister of Justice, commeted that she is very proud and happy that her country will work with the blockchain technology with the goal of having real estate quotations in a completely safe and secure system.
Also, chairman of the Georgian National Agency of Public Registry commented in a press release that he is “very pleased with the technical progress and looks forward to continuing their fruitful collaboration.”
BitFury CEO Valery Vavilov explained that the Georgian government is excited about the whole project and the methods used. Also, he continued by explaining that all the changes were executed for the citizens of Georgia, so they can track if a title is authentic when it is entered into the system.
The software is going to be completely operational during this year, he said.
“The big goal is to move the process to smartphones, so people can use it in any moments and all transactions are secured, transferrable and accountable.”
Applied on properties management, the Blockchain technology maintains agreements in a few ways: in blockchain-based entries, records are time-stamped and this system would allow members interested in a property to verify and establish the date of previous sales.
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Real Estate Blockchain: houses on the ledger
The real estate blockchain is one of the most imporant use case for the distributed ledger as it is a secure and efficient data management system that enable buyers to rely on a live network.
The California-based Blockchain startup called Propy aims at simplifying real estate sales for investors and brokers by using the ledger.
At the moment Propy is available in Dubai, New York, San Francisco, Los Angeles, Miami and Moscow, so users can buy and rent houses creating a connection with the real estate broker on a blockchain platform.
Ethereum network
Propy exploits the Ethereum network, the blockchain network based on smart contract development.
Using Ethereum Propy can replicate the traditional process of real estate transactions by using a safer ledger.
The development team of Propy spent lots of time and effort in designing a smart contract project to be applied on this business.
Real estate Blockchain: how to use smart contract
Propy’s Andrey Zamovsky explained that the world lacks of “proper and robust electronic property registry”.
Some countries that have a digitalized registry to delete data manipulation issues, so Zamovsky said that a blockchain-based platform can be a very useful tool to eliminate corruption. Also, the lack of sophisticated and secure ledger makes the verification process more difficult for brokers.
To avoid this potential issues on data mismanagement, government agencies often take a few weeks to verify ownership transfers, but this is inefficient and expensive method for customers.
Zamovsky explained:
“A lot of developing countries still don’t have any kind of electronic property registry or have very inefficient ones – vulnerable to corruption, physical damage, hack attacks and fraud. The Blockchain database is replicated on thousands of servers worldwide, so it will be close to impossible to lose registry data.”
To read more about real estate blockchain, click here.
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