Moscow to conduct real estate deals on the blockchain

The government of Moscow has decided to conduct a blockchain experiment next year. Together with Vneshekonombank, Sberbank and Rostelecom, a vast telecommunications corporation with close ties to the state, the state officials will try to implement blockchain and distributed ledger principles in the Unified State Register of Real Estate. The corresponding government resolution is signed by the Prime Minister of the Russian Federation.

The document notes that the government of Moscow will act as operators, and Rostelecom – as validators. Citizens who agreed to take part in the experiment voluntarily will be auditors. The increase of citizens’ trust in digital property operations is among claimed goals of this project.

Russia already has good Internet means of paying taxes, and some state services have done a nice job to double their functions online, but the blockchain could really make a difference in the property market of Moscow, potentially eliminating realtors or at least minimizing their role. Many Muscovites (and, potentially, residents of other Russian regions) do not trust realtors, as they often see stories of frauds on this market in the news, and the blockchain in property could change this.