Blockchain startup Propy has executed a blockchain-based property sale in cryptocurrency in California.
The deal involved a sale of 10 acres of land in bitcoin which was processed through Propy's Transaction Platform. Every step of the conveyance was executed via Ethereum smart contracts, marking this as the first fully-recorded blockchain transaction in California.
Kate Fomina, a California licensed realtor, represented both the buyer – Luke Carriere, and the seller – Diana Dominguez. Carriere made the payment in bitcoin for 10 acres of land in Kern County.
With the involved parties located in different geographical locations, almost the entire cross-border purchase process was executed online through Propy’s Transaction Platform. The title deed was recorded on the Propy Blockchain Title Registry and on the public Ethereum blockchain.
According to the official release, every step was initiated by smart contracts and respectively recorded on the blockchain registry. The transaction was anchored and verifiable on distributed ledger technology, giving complete security to the deal. By using smart contracts, Propy guarantees that the flow of transactions is executed according to regional regulations.
Propy said that the transactions executed on its Transaction Platform are legally binding, provide additional proof of ownership, and safeguard the transfer of ownership via traditional legal instruments. In addition, the Propy Blockchain Title Registry is available for deed recording by any customer, broker, or title agent wishing to duplicate the encrypted information on the globally distributed Ethereum network.
“Propy streamlines a complicated process into a simple online transaction, and we’ve seen significant traction in the industry already — buyers and sellers are increasingly turning to blockchains and cryptocurrencies. We’re excited to facilitate more property transactions, and reach more milestones in our goal to automate the real estate industry via blockchains,” said Natalia Karayaneva, CEO of Propy.
Last year, Propy partnered with the government of Ukraine to allow online real estate purchases by foreign investors using blockchain technology. It also held a highly successful ICO in which it raised $15 million.