Blockchain-based peer-to-peer lending outfit RCN has partnered with fellow Argentine outfit Decentraland to offer mortgages on its in-game real estate – the ERC721 token known as LAND.
These on-chain mortgages are now being offered through the Decentraland marketplace for any LAND parcel for sale.
Buy LAND now, pay later
In order to be granted an RCN mortgage, users will have fill in a short application form and deposit at least 10% of the parcel value.
The buying and selling of land will not just be decentralized, but done on the leading global blockchain-based credit network.
This results in a request being created on the RCN Loans marketplace. If this loan request is fulfilled by someone, a smart contract buys and locks the parcel and transfers its ownership to the mortgage holder.
However, ownership can not be claimed until the loan is paid off. If this doesn’t happen, the lender can request the mortgage back and then the user who made the loan application loses any money paid and ownership of the parcel.
“Decentraland is dedicated to making the exciting new world of virtual reality decentralized — ruled by open standards as opposed to one central organization,” commented Decentraland CEO Ariel Meilich.
“This partnership will help us fully commit to that mission, as the buying and selling of land — the basis of all the exciting things our users can create in VR — will not just be decentralized, but done on the leading global blockchain-based credit network.”
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