This $1 million house is the first to be sold on the blockchain in the U.S.

Green Bay Packers fans have a chance to live just steps away from Lambeau Field – but it will cost them $1 million in cryptocurrency.

A so-called “Packer House” — it’s one of six homes that are actually connected to the parking lot at the National Football League team’s home stadium — the three-bedroom property is being sold on the blockchain, which is a first in the U.S., according to global property marketplace Propy. The home is currently owned by former Facebook executive and Green Bay native Chris Murphy.

“He is a crypto enthusiast and he wants to use the funds to back bitcoin initiatives,” said Natalia Karayaneva, chief executive of Propy.

The property (outlined in red) backs onto the parking lot at Lambeau Field (outlined in yellow), the home stadium of the Green Bay Packers.

A blockchain is a digital, public ledger that can record transactions using cryptographic security features in a verifiable manner that eliminates the need for someone to perform recordkeeping. The technology serves as the backbone of digital currencies including bitcoin.

“There are a lot of crypto millionaires and billionaires, and they’re looking to diversify. Real estate is one of the best ways to diversify a portfolio.”

Alex Voloshyn, chief technology officer at online real estate marketplace Propy

The sale follows a previous deal Propy facilitated in Ukraine, which it heralded as the first time a real estate asset was sold on the Ethereum blockchain. In that transaction, TechCrunch founder Michael Arrington purchased a $60,000 apartment in Kiev, as The Wall Street Journal reported. The deal was handled via smart contracts and paid for in bitcoin-competitor Ether and Propy’s own digital currency, PRO. Prior to the sale, the Ukrainian government ushered in regulation that allowed the title recording process to be fully integrated digitally, meaning the title was registered on a cyber-ledger.

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For the Packer house sale, Propy has tailored the smart contract framework previously used for its Ukrainian deal to comply with U.S. and state laws. The different parties to the transaction will be brought on the platform, including the title company, which will register the sale as it normally does.

The sale will take place on the Ethereum MainNet, said Alex Voloshyn, chief technology officer at Propy, and given how easily such a transaction could be compromised by hackers, numerous safeguards were established. “Transferring large amounts of cryptocurrency is not that safe,” Voloshyn said. “We have our own way to make the transaction secure.”

The tokenization that will confirm the transaction is secure will feature multi-signature verification and use certificates that are immutable. To ensure that the funds are directed to the right location, the buyer will verify that they have access to the private keys by sending randomly generated amounts of currency to the seller, who will then verify that they were received much like a consumer might do when establishing a direct deposit with a bank account, Voloshyn said.

While this may be the first American residential property sold on the blockchain — it’s far from the first real estate transaction in the U.S. to involve cryptocurrency. New York-based company Magnum Real Estate announced earlier this year that it would begin accepting bitcoin BTCUSD, +4.12%  for home purchases, with one condo in Manhattan having been paid for entirely in cryptocurrency thus far.

Also see: Meet the folk singer who bought bitcoin back when it was just $11

It’s not surprising that many people in the real estate world have embraced crypto. “There are a lot of crypto millionaires and billionaires, and they’re looking to diversify,” Voloshyn said. “Real estate is one of the best ways to diversify a portfolio.”

There are other benefits to performing real-estate transactions on the blockchain. In particular, doing so would allow buyers and sellers to eliminate many of the middlemen involved in a sale, which could make it take place faster and reduce some of the additional fees that are incurred.

As it stands now, transactions on the blockchain will be made without loans, given the absence of lenders participating in these platforms. That too is another development Propy plans to explore in the year ahead, Karayaneva said. “We have several entities that we’re collaborating with on this question, and it’s possible we’ll roll out something this year,” she said. “There’s an opportunity that it won’t be a standard lender. There are crypto banks that are evolving that could provide the financing.”

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