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Tokenization of Real Estate Using Blockchain Technology

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Applied Cryptography and Network Security Workshops (ACNS 2020)

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Abstract

Real estate is by far one of the most trusted investments that people have preferred, being a lucrative investment it provides a steady source of income in the form of lease and rents. Although there are numerous advantages, one of the key downsides of real estate investments is lack of liquidity. Thus, even though global real estate investments amount to about twice the size of investments in stock markets, the number of investors in the real estate market is significantly lower. Blockchain technology has real potential in addressing the issues of liquidity and transparency, opening the market to even retail investors. Owing to the functionality and flexibility of creating Security Tokens, which are backed by real-world assets, real estate can be made liquid with the help of Special Purpose Vehicles. Tokens of ERC 777 standard, which represent fractional ownership of the real estate can be purchased by an investor and these tokens can also be listed on secondary exchanges. The robustness of Smart Contracts can enable the efficient transfer of tokens and seamless distribution of earnings amongst the investors. This work describes Ethereum blockchain-based solutions to make the existing Real Estate investment system much more efficient.

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Correspondence to Ashutosh Gupta , Jash Rathod , Dhiren Patel , Jay Bothra , Sanket Shanbhag or Tanmay Bhalerao .

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Gupta, A., Rathod, J., Patel, D., Bothra, J., Shanbhag, S., Bhalerao, T. (2020). Tokenization of Real Estate Using Blockchain Technology. In: Zhou, J., et al. Applied Cryptography and Network Security Workshops. ACNS 2020. Lecture Notes in Computer Science(), vol 12418. Springer, Cham. https://doi.org/10.1007/978-3-030-61638-0_5

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  • DOI: https://doi.org/10.1007/978-3-030-61638-0_5

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