Propy, a blockchain-based real estate transaction platform, announced the $1.6 million sale of a San Francisco home owned by CrunchFund, a venture capital firm founded by TechCrunch founder Michael Arrington. Propy’s real estate platform that enables agents and their clients to close real estate deals entirely online is a prime example of blockchain’s potential to disrupt and reshape the global real estate industry. The offer to purchase, seller’s acceptance, payment and transfer of title ownership are uploaded and permanently recorded on the Ethereum blockchain’s immutable digital ledger.
“The traditional real estate sale process is arduous and broken. Buyers, sellers, and their professional support struggle with overly complex transactions – it’s an opaque, dated, and unnecessarily lengthy process, full of risks such as wire fraud,” said Arrington in a press release. Propy CEO Natalia Karayaneva said, “Blockchain’s main implications, after [virtual] money, is as a technology that enables ownership transfers… it aligns the entire process of any value transfer including real estate.”
Karayaneva is confident that the majority of global real estate transactions will be entirely digitized within the next two to three years. Propy is working closely with government stakeholders at all levels to provide an automated technology that instantly reports the transfer of title ownership.
In addition to raising $15.5 million in 2017 through an initial coin offering, the company recently received an investment from the venture capital arm of the U.S. National Association of Realtors (NAR). According to Karayaneva, the median price of house sold on the platform is around $1.5 million from approximately 20 closed deals.