The São Paulo State Comptroller’s Office will hold Brazil’s first public auction in which all documents will be recorded on a blockchain, with the aim of reducing legal disputes and increasing transparency standards in public auctions.
10 warehouses will be sold and all documents involved in the process will be time-stamped and registered on an unverified blockchain. The sale, previously reported by Convergência Digital, will be conducted through auction platform Nordeste Leilões in partnership with blockchain company InspireIP.
Brazil’s auction market has long suffered from falsified documents, fake websites and contradictory public records. The use of blockchain technology is an attempt to add a layer of verification that traditional systems lack, especially in high-stakes sales.
“Verification will be public, traceable and independent,” Caroline Nunes, lawyer and founder of InspireIP, told Convergência Digital. This approach turns documents into technical evidence. Each file is encrypted and protected, and even the slightest change will reveal tampering.
Nordeste Reyroes, which reported sales of 9.5 million reais ($1.74 million) in 65 auctions this year, sees this as a path to a larger urban market.
The auction comes as the country considers wider use of digital ledger technology. For example, fintech company Tanssi is launching a blockchain project to provide microloans to small producers in rural areas of São Paulo, the country’s economic capital.
