Propy Completes the 1st Real Estate Deal Recorded on Blockchain in the US
Propy continues to make real estate history — by recording the transfer of legal rights on blockchain in the US:
Earlier this year, we launched a pilot with the government of South Burlington, Vermont to utilize blockchain technology to record real estate conveyance documents. In February, we delivered the first stage of the pilot by using the Propy Registry to record the transfer of legal rights for a property in South Burlington.
We are working hard to deliver the next stages of our pilots and believe this historic action will become a global standard and begin a domino effect for the rest of the country. Much effort was required to prepare this recording, but this work makes it significantly easier for the rest of the 49 states to iterate the process.
The course of action we took in Vermont involves Propy’s open source blockchain registry utilizing smart contracts to do the recording.
The Propy Registry consists of a set of smart contracts connected to each other in a relational manner. The most important are the Property and Deed smart contracts. The Property smart contract is responsible for storing and updating property information while the Deed contract stores the metadata of the actual ownership transfer, links to the related smart contracts and uses PRO tokens to unlock the transfer functionality in the Propy Registry.
Plans for Future Government Acceptance
Unnecessary delays and inefficiencies in property rights registration systems can be eliminated entirely by leveraging the Propy Registry and Propy’s smart contracts platform.
The next step is to accelerate the acceptance of the Propy Registry as legally valid ledger of record for real estate transfers. Our vision is that local and state governments will adopt the Propy Registry as their official ledger of record for legal property transfers and registrations.
As the Propy Registry evolves, we intend to incorporate a modular system into Propy’s smart contracts platform that allows regional governments to provide local rules and regulations related to real estate transactions.
Every state’s real estate transaction process contains some differences, but taking this first step in Vermont allows us to build a core of the product which can easily be used in the rest of the states with minimal customizations.