Brazil to Test Blockchain in State Real Estate Auction to Reduce Fraud and Disputes
The Court of Auditors of the State of São Paulo is set to conduct Brazil's first public auction in which every document will be recorded on a blockchain to enhance transparency and reduce disputes.
The auction will involve the sale of ten warehouses, with all documents timestamped and registered on an unnamed blockchain platform. The process is being carried out through Nordeste Leilões in partnership with the blockchain firm InspireIP.
This initiative aims to combat issues such as document tampering, fake websites, and inconsistent public records by providing a verifiable audit trail. Officials note that the blockchain record enables public, traceable, and independent verification, with cryptographic sealing preventing undetectable alterations.
Nordeste Leilões reported sales totaling 9.5 million reais ($1.74 million) across 65 auctions this year, demonstrating the current scale of the market.
The pilot program could lead to broader blockchain adoption in Brazil, including fintech projects like Tanssi's microloan platform based in São Paulo.
