A Japanese real estate business has conducted an experiment with BTC and Smart Contracts.
Ruden Holdings, a Tokyo Stock Exchange-listed company, recently revealed the results of its latest trial project that involved the company’s “virtual currency real estate settlement platform.”
The experiment was carried out in collaboration with Blockchain Global Limited (BGL), as reported by the real estate company. The two businesses became partners back in April to design a settlement network as well as a “virtual registration data inquiry system,” Ruden explained, adding:
“For the settlement of bitcoins (BTC) used in the property sale, Bitflyer’s web service and API functions were used.”
The system is partially based on NEM protocol.
About the experiment
The trial represented a simple two-way involvement: a seller who offered for listing a property and a buyer seeking to purchase it. After the product has been chosen, the buyer filled his/her offer and waited for the seller’s confirmation.
“The buyer then sent the virtual currency (bitcoin) to the Ruden company’s virtual currency account,” the company mentioned, explaining:
“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. In addition, a notarized sale [and] purchase agreement is promptly shared with [the] buyer and seller.”
Reduced processing time
Ruden did not omit to point out the advantages of the new system. According to the company, using Smart Contracts as well as cryptocurrency-powered transactions will help buyers and sellers “to drastically shorten the time required” for processing each operation, counting depositing funds.
As cited by Ruden Holdings, “Smart contracts eliminate the need for manual work and conditions,” while “the time to negotiate and conclude can be shortened compared to the current work.” In addition, the decentralized system helps avoid “trouble such as refusal” of a property after the purchase was completed.
“It is not only to improve the efficiency of operations, but also to prevent unforeseen circumstances,” the company elaborated.
Last week, Ruden Holdings officials revealed on the upcoming subsidiary in Singapore dedicated to managing the launch of the company’s native crypto token.