The first-ever real estate transaction using blockchain technology was completed in Brazil on July 16. This continues a worldwide trend in the real estate business to use the technology to process purchases and transfers of properties.
Cyrela, one of the largest local construction companies in Brazil, partnered with startup company Growth Tech to complete the transaction. The transaction was completed using the Notary Ledgers platform, which provides users with the ability to request and track notary services in the digital world. The use of this technology will increase the speed of the entire process and reduce costs related to legal fees by as much as 55% per month.
This particular service is distributed through the IBM blockchain technology. IBM’s blockchain platform has been dominating in this particular technology. Just in the last month alone, the three largest banks in Australia began using the Big Blue platform, as well as Nestle. This on the heels of the company tripling the number of blockchain patents it has received in the last year.
Cyrela is one of Brazil’s largest home building and real estate companies. They have operations in 55 cities across both Argentina and Brazil. The company has built an incredible reputation for excellence but recognizes that the use of this technology only enhances its operation. According to Rafaello Carvalho, legal director at Cyrella, the company has been “looking for Blockchain applications for the legal market for some time now. The completion of this transaction reinforces how we are open to using technology to improve the real estate business environment in the country.”
It is seen that the use of this technology will greatly reduce the risk of fraud. By collaborating with Growth Tech, this platform should be able to improve the legal environment while also ensuring that compliance with regulations is met. Explained Hugo Pierre, CEO of Growth Tech:
A digitally signed document in our platform will have the same validity as a manually signed in a physical notary because the validations are also done by a notary public in the Notary Ledgers Network.
Besides improving the efficiency of real estate transaction, there is also another possible effect that should arise out of the sale. The Rio Branco Institute, the nation’s diplomatic academy, will now have candidates who understand cryptocurrencies and blockchain technology as part of their education. New diplomats are required to understand this technology, including having an understanding of bitcoin and its impact on financial markets.
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