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Bitcoin and blockchain technology are being increasingly used for purposes other than peer-to-peer transactions for which it was originally created. The potential uses of blockchain technology being currently assessed and developed include trade settlement and ownership solutions, file storage, transparent voting system, Digital identity management, rights management, public records, banking, real estate and governance.
Bitcoin as a currency is no less. Bitcoin is an open source distributed cryptocurrency created by Satoshi Nakamoto in 2008. The digital currency has been operational since 2009. The bitcoin community was involved in mining the cryptocurrency for almost one and a half year before the first real-world bitcoin transaction for goods happened. The very first time someone used bitcoin was to buy a pizza. Laszlo Hanyecz, a Florida-based computer programmer was the person who ended up paying 10000 BTCs to get a Papa John’s pizza worth $25 in the month of May 2010. In today’s value, it is worth over 4 million dollars. The costliest pizza ever bought. However, in those days, the bitcoin was close to worthless. People used to equate it to game currency.
As the demand for bitcoin, initially from the deep web increased, its value also started to rise. Now the value of a single bitcoin is worth $ 413. Since the pizza, there was no turning back for bitcoin. Now, we can use bitcoin to buy almost anything (either directly or indirectly). However, no one had ever tried to buy property with bitcoin, not until recently at least.
According to recent reports, the first property deal paid with bitcoin is currently under process in Denmark. The deal is being facilitated by one of the Denmark’s well-known real estate platform – Just-Sold.dk. Compliance for this transaction is being handled by Coinify.
The property in question is located in the town of Morkov, Sealand – The largest and the most populated Danish island. According to the report on Version 2, Just-Sold.dk received a request for the listed property from a potential buyer who was interested in paying with bitcoin. The buyer in question was said to have helped a startup with their mining operations and in return, he had received about 117 bitcoins. The real estate platform took this unusual request to the seller, who agreed to deal with bitcoin.
The company has listed the help of Coinify, a leading bitcoin payment processor with this transaction. Coinify will be working with the buyer to satisfy all the regulatory requirements to execute the deal. As per the rules, large transactions like this one will require compliance with anti-money laundering regulations. In order to comply with the requirements, the source of money has to be verified, which in the case is bitcoin.
Bitcoin blockchain is a transparent ledger recording all transactions ever happened on the bitcoin network. Coinify will be making use of the blockchain transaction data to verify and showcase the origin of funds. Until the deal is complete, Conify will be an acting escrow agent. Upon completion of the formalities, the seller will be receiving the bitcoin equivalent of the asking price in Danish Krones.
Bitcoin is creating new milestones every other day and the purchase of real estate with the digital currency is one among them. On the other hand, the blockchain technology can be used to register the ownership of the property and maintain a secure digital record of all the work done, taxes filed, utility bills etc. which marks the application of blockchain technology in real estate.
Crypto-technology has a solution available for each and every industry, it’s just a matter of time for such solutions to be employed.
READ MORE: Blockchain Might Just be the Building Block Real Estate Industry Needs | Opinion
Ref: Version 2 | Motherboard
