Dynamic smart contracts framework on Ethereum private blockchain for real estate management

Abstract

Blockchain technology enables the recording of information in an immutable manner, making it extremely difficult or nearly impossible to alter, hack, or manipulate. Its adoption is expected to enhance long-term economic sustainability across various industries, including real estate. Traditional real estate transactions typically involve third-party intermediaries to record and validate informal transactions. However, blockchain technology has the potential to revolutionize the real estate sector by transforming how properties are bought and sold. Features such as efficiency, transparency, process automation through smart contracts, robust consensus mechanisms, and enhanced security measures can reshape the real estate landscape by increasing efficiency and reducing costs. This paper explores the challenges currently faced by the real estate industry and reviews the literature on the disruptive impact of blockchain technology in this sector. A conceptual framework for a private blockchain is proposed based on the Ethereum platform, utilizing proof of authority as the consensus mechanism, specifically designed for property transactions. The proposed model integrates self-sovereign identity for secure and decentralized identity management, incorporates digital wallets for transaction management, and leverages smart contracts to automate processes. This approach enhances transparency in digital transactions, thereby fostering greater trust between users and service provider.