Smart Contracts and Tokenization: Revolutionizing Real Estate Transactions with Blockchain Technology

Blockchain is a versatile technology with many potential applications, and one of them is in the field of real estate. Blockchain offers a high level of security and transparency, which are crucial in real estate transactions. While previous research mainly focuses on transactions between buyers and sellers, important elements like inspector’s and lender’s approval are often overlooked. This research introduces a groundbreaking project called Blockrealty, which addresses these limitations. The Blockrealty project specifically utilizes the Ethereum blockchain, leveraging its smart contract capabilities and widespread adoption for secure and transparent real estate transactions. Ethereum’s established infrastructure and community support make it an ideal platform for implementing the ERC-721 Smart Contract standard for real estate tokenization. It employs a unique three-step approval process involving buyers, lenders, inspectors, and sellers to ensure secure transactions, overcoming current challenges in the real estate industry. The project utilizes Non-Fungible Tokens (NFTs) for asset tokenization, using the ERC-721 Smart Contract standard to seamlessly convert real estate assets into digital tokens. To enhance data integrity and optimize hosting costs, the integration of the InterPlanetary File System (IPFS) ensures secure and decentralized storage for property images and metadata. Metamask integration provides a user-friendly interface for easy interaction. The research critically examines existing blockchain use cases in real estate, highlighting persistent problems that hinder the complete maturation of blockchain technology. The main aim is to create a digital real estate network using blockchain. This will help manage investment properties and make real estate contracts easier to distribute. It will make the real estate market more efficient and transparent.