Blockchain-powered real estate platform Ubitquity has recorded the first real property ownership transfer on Bitcoin's decentralised public ledger.
Using the Ubitquity platform, Marina Reznik of Atlantic Sotheby's International Realty, recorded her most recent purchase transaction on to the Bitcoin blockchain, using the Colu Coloured Coins protocol.
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The transaction was properly recorded with the local municipality, and was also turned into a digital asset and secured on to the blockchain via Ubitquity, which has already recorded existing parcels of real estate using basic information from some early users. This was the first real property ownership transfer recorded using the technology, said the company.
Nathan Wosnack, founder & CEO at Ubitquity, said in a statement: "Ubitquity's Software as a Service platform created a ledger entry on the blockchain allowing anyone to view and verify the transaction. Using the blockchain as a master ledger for transactions reduces the possibility of fraud as all details are instantly verifiable, and not stored on easily exploitable centralized databases or paper ledgers prone to damage or loss."
"Our long-term goal is to digitise titles to all assets (in this case real estate) and provide an immutable record of clear ownership in perpetuity, powered by the Bitcoin blockchain. The first Real Property ownership transfer, facilitated by Ubitquity, can be easily viewed and publicly searched on the Colored Coins block explorer."
In 2015, Ubitquity set out to create a simple platform as a proof of concept for using the blockchain for "non-financial applications". By early 2016, a basic user interface was ready for early users to pilot the system and begin recording property records onto the blockchain. One of the first to pilot the system is a realtor in Norfolk Virginia, Marina Reznik, with Atlantic Sotheby's International Realty & the Kris Weaver Real Estate Team.
"The blockchain registration functions in a manner that cannot be duplicated; promising to transform titles, ownership, and authentication in a way that is easy to prove and verify. This will make real estate sales more efficient and title insurance less expensive since the savings on research and curing errors will trickle down to the consumer. We have already recorded existing parcels of real estate using basic information by our early users, however this is the first real estate transaction recorded and secured on the blockchain. This was done as an added value gift for the purchaser," added Wosnack.
A new property transfer encompasses all the events in that property's history via the title search. By recording this and all future documents/events in that property's future, a publicly accessible, immutable record is created, making future transfer easier and less costly to research.
"A lot of meticulous work goes into doing a title search and ensuring ownership transfers correctly. Any title defects revealed must be cleared up and the sale is still recorded with the appropriate municipalities governing the transaction. We have simply added an extra layer of security by securing the record of transfer on the Bitcoin blockchain for permanent immutability. This is a huge step forward for blockchain and real estate," said Marina Reznik.
"We are always looking for ways to provide our clients more value. We recognize that securing a new property transfer on the blockchain is a historic moment for the real estate industry and we love being at the forefront of innovation. We're excited to be working with the team at Ubitquity to make this happen," said Kris Weaver of the Kris Weaver Real Estate Team.
Wosnack said the firm is working to ensure full legal compliance with government regulations in the respective jurisdictions; each county recorder has different regulations by which they must abide.
Public keys can be made public, so that trustworthy organisations (county offices, banks, title companies) can attach their trusted brands to specific title records, said Wosnack
"We at 'Team Ubitquity' are focused on doing it right so that we can then provide proof of concept to the government of how safe and beneficial it is to them and the overall consumer.
"The government is interested in things that are safe and effective; they are risk averse and will only adopt technology once it has sailed the rough seas of the private sector and arrived at government's 'safe harbor'.
"Although, we have seen glimpses of innovation coming from certain municipalities, such as the State of Vermont, which was fulfilled as requested by the General Assembly via S. 138 (Act 51), and was presented to the state legislature on January 15, 2016. The article stated this report was part of a broader legislative effort aimed at evaluating new and innovative ways of promoting economic growth in the state."
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FAQs
Immutable Record-Keeping: Transactions recorded on the blockchain are immutable and tamper-proof, providing stakeholders with a reliable and verifiable record of property ownership, transactions, and history. This enhances transparency, reduces fraud, and mitigates disputes in real estate transactions.
What will Bitcoin blockchain or digital ledger record? ›
The Bottom Line. The Bitcoin blockchain records all transactions, addresses, and relevant data like the block's size, blockchain version, block header hashes, the Merkle root, the coinbase transaction, timestamps, and nonces. Blockchain.com. "Bitcoin Block 854,339."
What is the blockchain for real estate ownership? ›
With records on the blockchain, a property owner can use a private key to prove ownership. Whoever is interested in buying, leasing, financing, or getting involved in any other way can easily look through the immutable ledger to verify ownership and also check its prior transactions, including if it has any liens.
Does Bitcoin have a public ledger? ›
The blockchain is a distributed, public ledger that contains the history of every bitcoin transaction. Anyone can download a copy of the blockchain, and it can be inspected to trace the path of bitcoins from one bitcoin transaction to another.
How does blockchain prove ownership? ›
Using the extracted public key and the signed data, the blockchain can verify the validity of the signature. If the signature matches the data expected from the extracted public key, it confirms that the transaction was indeed signed by the owner of that address.
What are the benefits of using blockchain in real estate? ›
What are the Benefits of Blockchain in Real Estate?
- Tokenization of real estate assets.
- Process efficiency for underlying industry operations.
- Reduced costs from process automation.
- Access to global asset distribution.
- Access to broader investor pools due to ownership fractionalization.
Ledger Nano X is a pocket-size hardware wallet that seamlessly connects with your smartphone or computer. Through the Ledger Live app and our partners, you can securely buy, exchange and grow your crypto.
Is it safe to store Bitcoin on ledger? ›
Bitcoin Hardware Wallets: A hardware wallet is a safe and practical option for securing your Bitcoin. It stores private keys offline and facilitates transactions without an internet connection. Ledger devices, for instance, offer secure element chip protection against physical hacks like side-channel attacks.
Does ledger hold my crypto? ›
In addition, with hardware wallets like Ledger, you're storing and securing your crypto by yourself. That way, you maintain exclusive control over your private keys, and therefore, your crypto.
What is the blockchain for property records? ›
Using blockchain's digital ledger technology, verification and transfer of real estate titles could be more efficient and reliable. In a perfectly implemented blockchain-based land management system, or “blocktitle” system, title is verified, transferred, and recorded on the blockchain.
Fractional Ownership:
Blockchain allows for fractional ownership of properties. Through property tokenization, a single property can be divided into digital tokens, each representing a share of ownership. This democratizes real estate investment, making it accessible to a broader range of investors.
What is smart property in blockchain? ›
Smart property is property whose ownership is controlled via the Bitcoin block chain, using contracts. Examples could include physical property such as cars, phones or houses.
What does a blockchain ledger look like? ›
Blockchain, in its simplest form, resembles a digital ledger that records transactions across numerous computers. This ledger is not centralized in any one location but distributed across multiple nodes, ensuring that it's transparent and secure.
How much will 1 Bitcoin be worth in 2030? ›
Bitcoin (BTC) Price Prediction 2030
| Year | Price |
|---|
| 2025 | $ 67,697.84 |
| 2026 | $ 71,082.73 |
| 2027 | $ 74,636.86 |
| 2030 | $ 86,401.50 |
1 more rowA private key is an alphanumeric code generated by a cryptocurrency wallet. It is used to authorize transactions and prove ownership of a blockchain asset. A private key is an integral part of cryptocurrency, and its encrypted properties help protect users from thieves and unauthorized access to their funds.
Why is blockchain considered a good option to improve the security of information? ›
By creating a record that can't be altered and is encrypted end-to-end, the blockchain helps prevent fraud and unauthorized activity. You can address privacy issues on the blockchain by anonymizing personal data and by using permissions to prevent access.
How does blockchain help in asset management? ›
By leveraging blockchain technology, asset managers can create tamper-proof records of asset ownership, transactions, and other relevant data. This not only reduces the risk of fraud and errors but also simplifies the process of asset transfer and tracking.
How does blockchain keep records? ›
A key strength of blockchain technology is that it helps ensure the integrity of records through the way transactions are recorded and validated. For example, in Bitcoin it is through solving a cryptographic puzzle that permits detection of any alteration to transaction records after they have been validated.
Why is blockchain a trusted approach? ›
It is an immutable public digital ledger, which means when a transaction is recorded, it cannot be modified. Due to the encryption feature, Blockchain is always secure. The transactions are done instantly and transparently, as the ledger is updated automatically.
