A Japanese real estate company has unveiled a cryptocurrency settlement system for seamless property transactions, reported DigitFinance on September 4, 2018.
NEM and Bitcoin Blockchains Used
Listed on the Tokyo Stock Exchange, real estate business Ruden Holdings revealed the Bitcoin and smart contract-based settlement system produced far-better results than the currently used framework.
Dubbed the “Virtual Currency Settlement Platform,” the company partnered with Australia-based Blockchain Global to develop the system and build a “virtual registration data inquiry ledger.”
Bitcoin settlements were conducted using Bitflyer’s API and web service solutions for enterprises, while “some parts” of the system used the NEM blockchain to confirm transactions.
While maintaining its dominance as Japan’s biggest exchange by traded volume, Bitflyer offers substantial liquidity to crypto-businesses but halted the addition of new users after a legal order from the country’s financial regulator in June 2018.
First, an eligible property seller was chosen, alongside a buyer willing to purchase. The latter filled out an application for purchase, submitted all necessary documents, sent his cryptocurrency of choice to Ruden’s accounts … and done!
The company elaborates:
“As soon as Ruden (system) confirms the remittance of the virtual currency, we will execute the contract and [convert the] virtual currency to Japanese yen.”
A notarized purchase and sale agreement were inbuilt in the smart contract, promptly shares with buyer and seller upon successful receipt of funds.
The smart contract included several other documents – including essential property forms, registration documents, and other government forms – making for a one-stop solution for such property purchases.
Triumphing Over Tradition
Ruden noted the innumerable benefits the blockchain-based design had over traditional systems, apart from cost-effectiveness and the elimination of corrupt intermediaries.
Depositing money – a significant amount in case of property deals – was more secure and faster than traditional methods of conducting a bank wire. Smart contracts reduced the time-constraint for processing applications faster and with accuracy.
Meanwhile, Ruden intends to offer its digital token in the coming months – a Singapore-based organization has already been established in this regard.