The Real Estate Transaction Trace System Model Based on Ethereum Blockchain Platform

Abstract

Blockchain is one of the leading 4.0 technologies because of its potential applications in many fields, such as real estate. Real estate is an old market and little changes. Therefore, buying and selling real estate brings many risks because it is difficult to find and verify information. Real estate transactions are complex, time-consuming and have high intermediary fees. However, Blockchain technology has opened up many ways to change this. Therefore, we study Blockchain technology and propose Real Estate Transaction Trace (RETT) system model to change and improve the way real estate transactions work in Vietnam. The RETT system model is capable of managing and tracking the entire process of real estate transactions of all participants (owners, buyers, sellers, notaries). The government or real estate investor consortium can easily manage and trace all the purchase or lease transaction history of a property (land, town-house, apartment). We designed Blockchain network architecture, distributed ledger and smart contract. As a result, our method can digitize assets on the Blockchain, store decentralized transaction history, enable encryption, and direct transactions between sellers and buyers. In addition, our system model can reduce the problem of data explosion, execute multiple transactions at the same time, prevent data tampering and sensitive information disclosure. We have built a prototype of this system model based on the Ethereum Blockchain platform. Thereby, we have proven the effectiveness of RETT system model and practical applicability through experimental transactions. Our method improves transparency, eliminates intermediaries, saves costs and increases mutual trust in real estate transactions. Our system model can manage real estate transactions comprehensively and can be able to overcome the weaknesses of the current real estate transaction management system according to the Client-Server model. Therefore, our system model can be deployed in the smart city to manage and trace the entire real estate transaction.