The Use Of Cryptocurrency And Smart Contracts In Real Estate Yields Positive Results

A Tokyo Stock Exchange-listed firm recently tested the use of the virtual currencies and smart contracts in real estate and observed various advantages over the traditional system. The Japanese real estate company collaborated with Blockchain Global Limited (BGL) to develop a Cryptocurrency settlement system to support transactions in the sector. The recent experiment is a demonstration of how businesses and their customers can benefit from adopting blockchain and Cryptocurrencies.

Cryptocurrency Real Estate Settlement System

Ruden Holdings (TYO:1400) recently carried out an experiment on the use of virtual currency and smart contract in real estate. The Tokyo Stock Exchange-listed firm has released results about its Cryptocurrency real estate settlement system. The experiment involved the use of smart contracts and Bitcoin BTC.

The real estate firm has revealed that it partnered with Blockchain Global Limited (BGL) in this trial. The development of the new system began in April and involved setting up a data inquiry platform for virtual registration. The system allowed for the use of BTC instead of the Japanese while the contract was signed in the smart way.

Ruden has confirmed that they relied on Bitflyer’s web service and API in the settlement of BTC used in the purchase. According to the firm, they also utilized the NEM test network in time stamping of the contract. Although Bitflyer is the largest Cryptocurrency exchange in the country by trading volume, it has since stopped registering new users after the Financial Services Agency (FSA) issued them with a business improvement order in June.

How The Experiment Was Conducted

The experiment involved the buyer and the seller meeting on the new platform. The seller listed the property he or she wanted to sell and the buyer was looking for a property to buy. The two interacted on the platform with the buyer filling out an offer to buy the house and the seller confirming it.

At this point, the buyer then sent Bitcoin to the new system’s virtual currency account. Immediately, the Ruden system confirmed receiving the payment, the company proceeded to execute the agreement. Moreover, the company converted the Cryptocurrency to the local currency and then shared a notarized sale and purchase contract with both parties.

No paperwork was involved in the entire process. The property application form was also automatically sent to facilitate the transaction. The same was done with all the other necessary documents.

The Benefits Of The New System Over The Traditional Systems

After successfully carrying out the experiment, Ruden prepared a report on the various advantages that they observed on the new platform. The company noticed a significant reduction in the time needed to facilitate this transaction.

The buyers and users relying on smart contracts and Cryptocurrency payments don’t come across manual work and conditions. The new platform drastically reduced negotiation time allowing the involved parties to come to an agreement faster.

Under the traditional systems, trouble sometimes arises when the seller refuses to transfer the property even after receiving payment. Under the new system, however, this problem is eliminated as the company takes over this role. The new system can prevent unforeseen circumstances.