Tokenization of real estate continues to add milestones to the cryptocurrency implementation list. AnnA Paris Villa sold last week, will go down in history as the first European property acquired through a blockchainBlockchain
is a continuous and sequential block chain of information (digital linked list). When building a blockchain, copies of related blocks are simultaneously stored on multiple computers.Details transactionTransaction
– is a financial term that means a logically meaningful operation that can only be carried out completely. Details.
The first real estate on the blockchain
The villa, located in the urban area of Boulogne-Billancourt, was valued at 6.5 million euros and was sold to Sapeb Immobilier and Valorcim French real estate companies.
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The process involved first transferring ownership of the building to a joint stock company (SAPEB AnnA), and then dividing the company into 100 tokens, which would be appropriately distributed among the owners. Each tokenToken
– is an accounting unit that is used to represent a digital balance in an asset.Details can be broken down into 100,000 units, which means that individual building shares can be bought and sold for as little as € 6.50. Real estate tokens are already appearing in the markets.
Bilal El Alami, co-founder of Equisafe, a blockchain-based French investment platform that led to the deal, said: "The difference between a typical transaction and an operation like AnnA is that the property rights of the company that owns this building are now fully encoded in the blockchain. Each token is encoded to contain the conditions for the purchase, sale and exchange of securities, as well as the rights to which it grants access."
Tokenization of the real estate process provides many advantages over the traditional outdated process. When selling the AnnA villa, most of the cumbersome legal documentation related to the sale of property (for example, notarized documents and identity card) was encrypted and recorded on the blockchain, which significantly saved time and security.
Europe completed the first ever blockchain-sale of real estate for 6.5 million euros. Recall today, July 3, the first cryptocurrency, Bitcoin, began to rebuild the course after the recent fall. The cost of digital gold has grown by more than 16.5% and currently stands at $11,517.
Editor: Yuliya Soroka