Since I posted https://steemit.com/property/@mentium/review-of-the-propy-ico
The community manager from Propy has advised the following:
And the cofounder also came back to me:
To be fair, they since updated their white paper - original released was 6 pages, now the new one is 31 pages.
New White Paper: http://tokensale.propy.com/Propy-White-Paper-17-Jul-2017.pdf
First Market
I have gone through the new white paper - and it seems that the first intended market is California:
Using blockchain technology, Propy has prototyped some of the core technology that will become the Propy Registry as a DApp that allows each party to a real estate transaction — including the broker, buyer, seller and title agent/notary—to sign off on a transaction for properties located in California, which is Propy’s intended first market.
Though according to Slack conversation:
Lobbying being the key term, meaning they have yet to successfully agree this. Though they are trying to change things, not sure how the proposed Bit-licence will affect them:
https://news.bitcoin.com/bitcoin-advocates-fight-california-bitlicense/
But being California, crypto-currenices are not new, and with the recent real-estate exchange of $4 million in BTC ref: https://www.cryptocoinsnews.com/lucky-timing-california-home-buyer-gains-an-extra-1-million-by-paying-with-bitcoin/
This could actually become a reality in California.
Token Usage
Further within the updated white paper, the use of the token seems to be for any entry on the blockchain. Including standard real-estate processes.
For example: A realtor sells a property, uploads the necessary documentation, this would be recorded on the blockchain. So even if Propy does not manage to have a Title legal exchange process, the blockchain will still be used for processes up until this point.
Even a property inspection, will be recorded on the chain, all compounding use of the token. And from my experience, I can tell you from rental to sales, there are currently tens, if not hundreds of processes per property transaction.
Duel Registry Issue
In my previous post, I mentioned that I see two possible options for Propy:
Option 1: A country adopting Propy as the defacto way of registration of properties.
Option 2: Propy layered on top of existing registers.
They answered this well, in there updated white paper:
1.8 REGULATION CHANGE
There are two possible legislative environments we are currently preparing for:
1. The first one would be the current context, where governments recognize their legacy databases as the exclusive legal evidence of ownership. In this environment, Propy intends to initially conduct business and thus, the current development of Propy is geared towards mirroring government records in the blockchain with the goal of providing a platform for foreign real estate investors to conveniently and remotely carry out property transactions. The Propy Registry acts as a source of fast delivered evidence of property transfer for brokers and serves as a mirror of the ownership transfers currently taking place at the title registries of the targeted markets (U.S., UK, UAE). Brokers who focus on foreign real estate investments, have expressed the need to have available technology that could allow the online processing of real estate purchases with the additional layers of security that the Propy Registry intends to provide.
2. The second legislative environment would arise when progressive governments start recognizing the benefits of ownership transfers on blockchain as a more desirable alternative instead of trying to continue to enhance the existing real estate registries. The widespread adoption of a blockchain system to manage real estate titles positions Propy to provide a sole, decentralized source of validation for real estate transactions.
Basically matching the opinion I had, but expanding on the detail. This shows us, they understand the issues at hand.
Further the Co-founder - Denitza Tyufekchieva stated that they have been negotiating with governments, since 1 year ago:
Working Product
Also in my previous review, which I briefly mentioned. Is do they have a working product?
The answer to that is yes, which is better than most ICOs. I tested the advertising platform from the App store, nicely designed UI with actual usage. Ref: https://itunes.apple.com/eg/app/propy-buy-rent-properties/id1017369540?mt=8
They plan to update this according to their white paper, to bring in on chain recording of transactions. Here is a demo screenshot:
Also my favourite part, is that they plan to release a block explorer for properties and make this open source. This will truly transform the industry and it will also help accurately value properties and much more. Open data like this is desperately needed within the property industry.
Updated conclusion
The first white paper was released in haste, but they stood their ground and came back with well-thought out answers and a very detailed white paper.
The token usage will be high, and I will most likely invest due to this.
Are they likely to get any country to adopt title deeds exchange process, not this year. Next year or the year after, maybe. Depends on if they can test this in real-life within California.
Other markets, like UK, Europe and Russia, they may struggle with this. But still within these markets they will still use the verification processes that Propy plan to implement. As it only relies on real-estate agents, brokers to adopt this, not governments.
Which means as an investor the tokens are still likely to be used, even without title deed exchange feature/process in place.
I am open to all thoughts and opinions, please feel free to leave any comments or questions.
Disclaimer: Please do not take this as investment advise, this is just my own personal research and opinion.
