A pilot project in South Burlington, Vt., is using blockchain technology to digitize real estate transactions and make them speedier to process. South Burlington’s city clerk’s office has teamed with
Propy Inc., a Palo Alto, Calif.–based real estate blockchain startup.
Real estate transfers in the city will be recorded on a blockchain that can be accessed through an app or website by multiple entities involved in the transactions. It digitizes a real estate transaction in a number of ways, such as allowing the involved parties to access the title deed instantly and then deliver it to buyers right away. Propy’s system includes an online and mobile platform.
Blockchain technology is touted for its ability to better protect transactions from security threats and to slash transaction times for real estate transfers, possibly in half. It also opens the door for more cryptocurrency purchases, such as through Bitcoin. Propy’s system issues certificates of verification for those purchasing real estate using cryptocurrency.
Vermont is an earlier adopter in the blockchain space, and its city officials hope to serve as a model to other states looking to embrace the technology for real estate transactions. Vermont was the first state to sign a law to promote economic development through broader blockchain applications in legal and business applications.
“The Propy pilot will showcase the savings of blockchain-distributed technology—furthering Vermont’s and the City of South Burlington’s goal to achieve more cost-effective government,” says Natalia Karayaneva, CEO of Propy. “In parallel to making land record management systems significantly more efficient, Propy’s additional safeguards ensure additional data integrity.”
Propy’s blockchain platform includes an online and mobile global real estate property store and peer-to-peer marketplace, a transaction recorder for the remote handling of fiat and other cryptocurrencies, and a lands records registry that is globally applicable.
“We are fortunate to have a cutting-edge statutory framework that enables the use of blockchain technology, and we will continue to work with the legislature to ensure Vermont remains at the forefront of these innovations,” says Michael Schirling, secretary of the Vermont Agency of Commerce and Community Development.
Source: Propy Inc.
