Propy CTO Alex Voloshyn explains how the company uses blockchain and smart contracts to ensure transparency and efficiency during cross-border transactions.
Blockchain is transforming multiple industries, including real estate. This summer, one of the first real estate transactions integrating blockchain took place in Ukraine.
TechRepublic's Dan Patterson met with real-estate company Propy CTO Alex Voloshyn to discuss how blockchain is transforming the buying and selling of property internationally.
"Blockchain provides a lot of transparency," Voloshyn said. It allows both parties signing a contract to verify and change records digitally.
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Propy specializes in cross-border transactions. "Blockchain provides the decentralization," he said. Sometimes when hackers cannot change data, they try to destroy it. With blockchain, you cannot change or destroy that information because nodes all over the world store that data, making it impossible to mess with.
Blockchain also makes real estate transfers more efficient. Smart contracts can automate processes like paying taxes and perform the role of escrow, he said.
The real estate market has been growing at a high rate, especially cross-border, since 2009, and there is no set of standards for these type of transaction, he added. Because of that, a real estate transaction could require multiple international trips. By using blockchain, Propy aims to make these types of transactions easier and cheaper by performing them wirelessly.
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