Simplifying the Real Estate Process

Home title fraud is no joke. In 2017, the FBI reported that over 9,600 people lost a total of $56 million due to home title fraud. People are losing so much money over property fraud because of the ineffective management system.

Let’s think about this at a larger scale. In developing countries, with an even worse property management system, farmers who can’t verify their property are left in the dust, feeling hopeless because the only income source to support their livelihood has disappeared.

If natural disasters occur such as the 2010 Haiti earthquake, families are left with no home and nowhere to go. Buildings in which documents of identification are destroyed in natural disasters, however, families are still desperately fighting, even though disputes cannot be resolved with no proper evidence.

Due to many similar events occurring worldwide, the loss of economic opportunity for owners who have lost their homes because of no identification has been estimated to be at $20 trillion globally.

Without real-time access to trusted information, the real-estate industry will suffer major losses, while also ruining the lives of all socioeconomic classes.

Blockchain is a unique technology that is essentially a decentralized, distributed ledger holding time-stamped blocks ordered chronologically. Because of blockchain’s unique properties and functions, we can solve a lot of the problems within property management.

Through blockchain, record-keeping would be a lot more reliable by eliminating fraud and tampering. Since every record is verified by all the different parties before it’s updated on the chain, members can see invalid records.

Additionally, blockchain’s decentralization and immutability makes sure that all the records are secure if anyone tries to hack into it. With decentralization, everyone on the network owns the same information, and the information is not stored in one place, unlike most centralized databases. Also, all blocks within the blockchain are chronologically ordered, so in order to change a single block, a hacker would need to change every single block after it on the blockchain.

Finally, blockchain can eliminate intermediaries and allow for more trust between parties. Parties can streamline the real-estate process, reducing time and costs.

I built smart contracts, self-enforcing digital contracts that run on the blockchain, in order to create the dApp.

The first step is to store specific data such as the owner's address, location, cost, and ID on the blockchain.

We then create a function to add land for the owner and create a counter to keep track of the number of lands.

Finally, we create a function for the owner to transfer land to the buyer by verifying the land ID of the owner and then creating a copy of land in the new owner’s collection.

One of the downfalls of blockchain is that it’s not very scalable and it lacks the proper implementation. But with the help of outside assistance, blockchain will be able to revolutionize the real estate industry.

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