Home » Blockchain Makes Deeper Inroads Into Real Estate As Roofstock Announces Its First NFT Home Sale

Blockchain Makes Deeper Inroads Into Real Estate As Roofstock Announces Its First NFT Home Sale

by admin

Roofstock, an online platform for investing in single-family rental homes, announced last week that it had completed the sale of a home via a non-fungible token through its subsidiary Roofstock onChain. The Columbia, South Carolina home was sold to local real estate investor Adam Sripakov for $175,000.

One of the first NFT-based home sales for the US, the purchase required multiple players in a blockchain environment to complete.

First, the house is owned under a limited liability company whose ownership is linked to Home on Chain, an NFT on the Ethereum blockchain. The transaction was made on the Origin Protocol Marketplace using Circle’s USDC stablecoin converted from USD using Wyre. The funding was facilitated via the Teller Protocol, a fintech platform that maintains the decentralized financial lending pool USDC Homes (not connected to the similarly named USDC above). The buyer was using a “multisig” wallet on her Origin and he required two parties to approve the transaction before the funds were released.

Matthew Liu, co-founder of Origin Protocol, said, “The marketplace smart contract we use made that swap instantly.” USDC split [to different parties]It all happened simultaneously in one on-chain transaction. “

The funds were transferred to the seller at the same time, minus Origin’s standard fee of 0.5% and Roofstock onChain’s fee of 2.5%. Prior to transactions, USDC Homes requires an underwriting fee, and transactions on most blockchain platforms, including Ethereum, come with what is known as a “gas fee” to pay for the cost of using the platform. increase.

“Our dream is that at some point in the future, this technology will be able to enhance user experiences that look more or less like Roofstock’s existing business,” said Liu, noting that Roofstock’s investment process will You mentioned how it’s done entirely online. “Many of the hard parts of blockchain have been simplified, such as the transition from fiat to cryptocurrencies, the actual smart contracts, and the sale of these entities, so traditional home buyers and sellers can You don’t have to fully understand the technology, which is laying the groundwork for all of us as a collaborative industry that will eventually disrupt traditional real estate – it may take five, ten years, but , and that’s what we’re most excited about.”

Before the transaction took place, the buyer had to verify their identity through traditional “offline” methods so that they could have a whitelisted wallet on Origin.

Liu envisions a future where these NFTs are sold to additional parties, saying: So one house can be transformed into many small houses. This improves market efficiency, price discovery, liquidity and makes it accessible to more people. “

There are other players in the blockchain space when it comes to buying and selling physical assets. Real estate startup Propy has completed several sales and Most recently in Gulfport, Florida and more to come.another $4 million house under construction Utah plans to launch NFTs later this year.

Related Posts

Leave a Comment