Smart Contracts For Real Estate Transactions : A solution to existing problems?

Abstract: Blockchain technology has become increasing popular with the advent of cryptocurrencies like Bitcoin. However, the technology lends itself to greater opportunities due to its inherent properties such as security and decentralization, and the possibility to transact without the need for intermediaries. Real estate is a massive industry which could greatly benefit from the use of blockchain technology. The current processes for purchasing property involve multiple third parties, all of whom charge a fee and delay the transaction process. Furthermore, once a property is purchased, the ownership records are insecurely recorded in centralized databases. These records are subject to loss, damage, or corruption due to negligence or fraudulent activity. This thesis investigates if blockchain smart contracts could be a feasible solution to these problems. The investigation consisted of a literature study to identify the potential benefits and limitations of smart contracts for property transactions. Based on the findings, a prototype was then developed to facilitate a key part of the property transaction process. The results demonstrated that blockchain smart contracts could address several crucial issues faced by the real estate industry, however, more work would need to be done before they could be commercially implemented on a large scale.