Christo Kassarov
Abstract: The real estate industry revolves around the largest asset class in the world. Yet, the real estate market suffers from high transaction costs, illiquidity, and lack of transparency. Real estate transactions take a long time to complete and carry numerous risks, including those of errors and fraud. Utilizing Distributed Ledger Technology (DLT), blockchain offers the benefits of a decentralized yet concurrent and immutable database. By achieving a very high level of data security and integrity, blockchain based solutions ultimately provide assurance of trust and transparency to all parties involved in a real estate transaction and can facilitate reduction of transaction costs and mitigate risks and fraud. Making information symmetrically available to all parties the technology may assist in disintermediation and shortening of transaction times. In this publication we conclude that blockchain offers most possibilities within land administration, sale and purchase transactions, and property management. We explore each of these, examining the factors and barriers influencing adoption.
Key words: blockchain; real estate; smart contracts; tokenization.
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