An apartment in Ukraine has become the first-ever property to be bought and sold using blockchain, potentially heralding a new era of transparent and efficient real estate transactions.
Ukrainian developer Mark Ginsburg sold the Kiev property to Michael Arrington, co-founder of the tech news site TechCrunch, for $60,000 via smart contracts on the Ethereum blockchain.
Blockchain, an online ledger first developed as the core technology behind the virtual currency bitcoin, makes transactions more transparent while improving the process of conveyancing and eliminating paper contracts and costly lawyer fees.
The sale took place last month, but the transaction was announced only last week by Propy, a real estate startup and decentralized title registry that assisted Arrington with buying the apartment.
“I’m thrilled to see Propy leading the charge in putting real estate on the blockchain—bringing transparency, efficiency and security to an industry traditionally fraught with red tape and bureaucracy,” said Natalia Karayaneva, CEO of Propy. “Ukrainian real estate is very affordable, and the Ukrainian market will soon be growing dynamically.”