Real estate brokerage which is based in Beverly Hills, Hilton & Hyland recently announced about partnering with blockchain startup Propy in order to auction a mansion which was reportedly built between 1580 and 1616. According to the source, the Palazzetto inside the Palazzo Albertoni Spinola is considered to be a Unesco heritage site. It was designed by architect Giacomo Della Porta in the early 1600s. The property is currently valued at $42 million.
Due to the partnership with Propy now interested parties not only can bid on the property in fiat currencies but also in cryptocurrencies. The bids are accepted until June 28, as informed by Propy CEO, Natalia Karayaneva.
Karayaneva also stated that the auction is believed to be a unique opportunity to record the sale of a historic building on a blockchain technology. Real estate applications of blockchan were informed to be still in early stages.
“It is not a transfer test of a couple dollars-worth of value, or questionable digital collectibles — but a multi-million dollar deal where lack of transparency can result in a significantly worse deal for the investor or seller”, said Karayaneva.
The CEO also stated that she hopes to see more real estate deals registered on blockchain in the future as well. Karayaneva highlighted the importance of the security and the immutable record behind the technology that can reassure buyers about not risking their funds.
Blockchain technology gives the opportunity to make the process of purchasing buildings more efficient. As the property transactions are automated, the appropriate fees are decreased; and so the homeowners have the opportunity to prove their property rights.
“The process of buying real estate today is non-transparent and non-secure even in the U.S. The bidding mechanism of providing offers blindly is very manipulative. This is why it is important to not only automate payment and title deed recordings, but also to automate the auction and offering mechanisms,” Karayaneva concluded.