In June of 2018, the Palazetto mansion hit the market for a cool $40 million. This sprawling Roman estate previously included 11 bedrooms, a movie theater, and three kitchens. The high price tag met the expectations of a listing of that size and within that region; while the price was not shocking, the estate’s listing was surprising. Luxury real estate company Hilton & Hyland listed the mansion via cryptocurrency auction. In partnership with Propy, the listing encouraged interested buyers to bid with crypto.

The Palazetto prize is not the first-ever crypto-backed real estate sale. However, the price tag and high profile nature of the villa does mark a turning point in this burgeoning industry. Until relatively recently, investors and real estate developers have been slowly wading into the crypto-pool. But Hilton & Hyland’s confidence in cryptocurrency as the future of real estate will (likely) prompt other investment realty firms and investors to consider the benefits of transacting with crypto.

Crypto facilitates higher transparency and lower fees.

The emergence of crypto solutions has challenged the status quo of the industry. Real estate transactions have always been conducted through brokers and intermediaries who facilitate listings, showings, buying documentation, etc. Within this structure, both the buyer and seller have very little agency. Furthermore, both sides are also subject to commission fees that often clock in at 6 percent of the transaction. Both buyers and sellers have long griped about inefficiencies and high commission rates, but until recently, there has never been a better substitute option. But the blockchain has changed all of that.

Blockchain allows for peer-to-peer transactions supported by immutable smart contracts. The result of this type of digitized buying and selling structure brings both parties increased transparency of transactional logistics, lower fees, and for potential buyers, increased accessibility to inventory.

As is the case with the Palazetto mansion, blockchain-supported transactions also solve one of the international real estate’s most notable woes -- high currency exchange rates. Bypassing the problem of differing global currencies opens up a new world of possibilities to investors looking to expand their portfolios.

Essentially, blockchain is giving home buyers and sellers something they’ve never had before: control.

Crypto empowers buyers and sellers throughout the real estate process.

For many crypto enthusiasts bringing crypto to real estate transactions is a natural step toward bringing crypto to the mainstream across all industries. But the implications of blockchain-based real estate go beyond merely furthering the crypto agenda or opening up new, global investment opportunities. The core benefit of this shift is its ability to help average buyers afford their homes. By removing intermediaries, and their high commission price tags, people gain higher ownership stakes and a lightened load of upfront payments.

Matthew Herrick, the CEO of crypto real-estate platform Deedcoin, started his platform after recognizing that the current real estate structure was hurting individuals. In a recent interview on the Bitcoin Podcast, Herrick discussed how his former Florida-based brokerage succeeded in helping people with their real estate transactions by eliminating commission fees. The overwhelming response he saw from this, and the subsequent positive effect he had on individual lives, prompted him to explore new ways to spearhead transactions without the crippling overhead. Herrick quickly saw the potential in utilizing crypto to build real estate models to help individuals across global markets.

Deedcoin emerged as a means of solving an industry inefficiency that had been hurting buyers and sellers for years. While Deedcoin continues to grow across the real estate landscape, it is also representative of the types of crypto businesses that are not fads, but instead, designed to empower people to gain more control over their finances, personal information, and overall lives.

As the real estate industry stands today, crypto transactions are still not the norm. But these types of sales have already proven their viability across a wide range of real estate listings, from luxury, international sales to single-family homes in small towns. Crypto has shown individuals that they don’t have to buy and sell at the mercy of intermediaries who are solely interested in commission checks. Crypto has sparked a new age of real estate -- one that prioritizes the financial fates of buyers and sellers, rather than overpriced brokers.