First US Real Estate Transaction In Blockchain Completed: What's Next?

Authored by Mike Shedlock via MishTalk,

Vermont is headed towards blockchain-recording of real estate transactions. Other states will follow...

Stories have been circulating about Vermont testing blockchain for recording real estate transactions.

A contact at Propy informs me that the city of South Burlington, Vermont, just became a global blockchain leader by locking in the first US real estate deed completely on blockchain.

In October of 2017, Business Insider reported Propy Announces World's First Real Estate Purchase on Ethereum Blockchain.

Natalia Karayaneva, CEO of Propy said, "This is only the beginning. With this transaction, we've broken first ground in putting the $217 trillion real estate market on the blockchain. We're starting with Ukraine, but over the coming year we plan to facilitate real estate transactions with the use of PRO tokens in California, Vermont, and Dubai."

Business Insider posted this disclaimer "Propy is the source of this content."

I make the same disclaimer.

My contact says "This first deal makes it much easier for the rest of the 49 states to iterate the process. In fact, Arizona and Colorado are next."

I have some questions and will post an addendum when I have answers.

Implications

First, this is not unexpected. I have many times commented that blockchain is perfect for real estate transactions. Real estate is low-volume, high-value. Buying candy bars on blockchain is not practical. Blockchain does not scale.

Second. This does not change my attitude towards cryptos. At some point everything will be crypto, but it will be government-sponsored and it will not be Bitcoin nor Ethereum.

Finally, and most importantly, entire chains of business will vanish.

Think of the business of title insurance. Poof!

Comments

Ramesees Four Star Thu, 03/08/2018 - 08:33 Permalink

Certain Blockchains do scale. Bitcoin and ETH don’t scale on chain, only off-chain. 

Uncensorable value transfer is the intrinsic value of Bitcoin. ETH is censorable by Vitalik, who will fork the network to take your money if he doesn’t like your politics (see Gab ICO). 

That cant be done with Bitcoin. It’s why Bitcoin is useable and Ethereum is a scamcoin. 

Using a centralized blockchain to record title is stupid, because centralized things can be hacked. 

 

Mike - you’ve got a lot to learn about crypto. 

In reply to by Four Star

DillyDilly Ramesees Thu, 03/08/2018 - 08:59 Permalink

How about putting that blockchain to REAL GOOD use and find out that "Feel the Bern"'s summer house was paid for using Clinton slush fund.

 

Can't wait to see the days when fucking Meryl Streep uses blockchain currencies to fund Oprah and pay for Harvey Weinsteins legal defense funds & one way tickets to Israel.

In reply to by Ramesees

HenryHall Four Star Thu, 03/08/2018 - 09:23 Permalink

>> The average US home costs half it as much as in the 60s if paid for in gold:

>> http://thesoundingline.com/median-home-prices-work-vs-gold/

What combining these datasets shows is that the median incomes of US families has declined steadily since the 1960s when that income is measured as paid in gold (or other precious metal, ie real money). This in spite of the manipulated and artificially low price of gold (not that it wasn't manipulated and artificially low before 1971 also).

In reply to by Four Star

Yellow_Snow rrrr Thu, 03/08/2018 - 08:30 Permalink

"...blockchain is perfect for real estate transactions" - Yes, nice use of the Smart Contract

 

But, I couldn't disagree more with this statement...

"At some point everything will be crypto, but it will be government-sponsored and it will not be Bitcoin nor Ethereum."

I and most in crypto's now, would never use a centralized government backed crypto...  never

We are in this for precisely the opposite reasons...

In reply to by rrrr

Ramesees Yellow_Snow Thu, 03/08/2018 - 08:39 Permalink

Exactly. A proper crypto is decentralized and uncensorable.

 

A government-centralized “crypto” is *no different* than a government-centralized currency. Both can be transmitted instantly and censored instantly by the government. 

Bitcoin cannot. That’s why it’s unique among cryptos. A few other are also decentralized, but none as well as Bitcoin. 

In reply to by Yellow_Snow

pods Ramesees Thu, 03/08/2018 - 09:22 Permalink

I would beg to differ about Bitcoin being the most decentralized. And I think Bitmain would agree.

ASIC "proof" (resistant) systems will always be more decentralized than Bitcoin.

"According to current data from Blockchain.info, Bitmain’s Antpool and BTC.com mining pools make up just over 40% of the computing power on the network of servers that maintain and secure Bitcoin’s distributed transaction ledger, or blockchain. "

That is a large chunk of the mining power.

pods

In reply to by Ramesees

DjangoCat Yellow_Snow Thu, 03/08/2018 - 10:55 Permalink

Count my upvote here please.  What this blockchain recorded transaction demonstrates is that blockchain, properly done in an unhackable decentralised fashion, is the way forward in recording the transfer of value.

Crypto currencies also represent value.  To the extent they are not manipulated or controlled by government entities, they represent secure value.  Otherwise, not. 

 

In reply to by Yellow_Snow

HRClinton Liquid_Silver Thu, 03/08/2018 - 10:39 Permalink

You're right on the 1st part (bought RE with 'tulips'), but wrong on the second part (no one buys with coins).

I did it with both, to keep things 'discreet':

First I traded HODLed BTC for shiny AU, in a private transaction in a law office in Europe.

Then I paid for a nice condo in .ch with shiny AU. 

No fiats and certainly no dollars were involved. A pure asset-into-asset-into-asset set of transactions. Try tracking or taxing me now, bitchez.

It's a folly and wasteful to 'hate' - be it CC or AU. I love and have both. But tulips will get you nice twolips. Maybe more. :-)

In reply to by Liquid_Silver

The Billy Blaze Catahoula Thu, 03/08/2018 - 08:51 Permalink

This isn't big news at all.  What exactly happened?  Someone purchased a piece of real estate.  Whoop-dee-doo!! Unless the purchaser records the executed deed at the courthouse, the purchaser runs the risk of having the property sold again by the same person who sold it to him/her.  This transaction is nothing but a publicity stunt.  Most states have statutes which institute race-to-the-courthouse rules; whoever records first wins.

Find a way to both (1) take the state out of the transaction, and (2) ensure you are title holder of record, then you will be on to something.  This transaction satisfies neither.

In reply to by Catahoula

Ecclesia Militans The Billy Blaze Thu, 03/08/2018 - 10:36 Permalink

Non-deeded equity ownership fractional arrangements.  Which are coming.  Coincidentally, they are as innovative as blockchain and give people all of the benefits of ownership without most of the downside (including non-judicial property title enforcement.)  I may be wrong, but if we'e going to think outside the box, then let's really get outside the box.... 

In reply to by The Billy Blaze

Youri Carma Thu, 03/08/2018 - 08:56 Permalink

Next:

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RedDwarf To Infinity An… Thu, 03/08/2018 - 10:46 Permalink

Propy is not a currency.  It is one of many new utility tokens.  Funny you talk about blockchain being good for record keeping, and here we are talking about a match made in heaven - recording property deeds - and in the same breath you are talking about how valueless crypto is.

By the way, cents are fiat.  Money by decree, which is what 'fiat' means.  Cryptos are money by voluntary choice with a rate set by the free market.  Not fiat by definition.

You're not just wrong, you are as totally wrong by the actual meaning of the words you choose as it is possible to be.

In reply to by To Infinity An…

adr Thu, 03/08/2018 - 09:50 Permalink

So you still need paperwork and a notary. The title still needs to transfer, etc, etc. 

So what is stored on the blockchain? The record of the transfer, that's it. Not the total amount of information required to purchase a house. There is still the few hundred papers required to legally transfer a property.

 

JibjeResearch adr Thu, 03/08/2018 - 10:57 Permalink

It's the beginning.  You expect too much from a start point.

Eventually,

Real Estate blockchain will incorporate records of home, all the dates of construction and fixes, and validation by the GOV record keeper.  Who ever comes up with this complete version estate blockchain will dominate the estate market.

In reply to by adr