The role of blockchain technology and smart contracts in enhancing the transparency of fragmented investments in overseas real estate
Hangzhou Futuda Enterprise Management Co., Ltd CEO, 310011 Hangzhou, Zhejiang, China.
Research Article
World Journal of Advanced Engineering Technology and Sciences, 2024, 13(01), 448–458.
Article DOI: 10.30574/wjaets.2024.13.1.0442
Publication history:
Received on 12 August 2024; revised on 19 September 2024; accepted on 21 September 2024
Abstract:
As the mobility of global capital is getting higher, more and more investors tend to invest in overseas real estate. However, the conventional model of investing in real estate possesses several disadvantages including high entry hurdles, low levels of market liquidity, and low transparency, particularly for retail investors. This article will seek to establish how blockchain technology as applied in smart contracts can help in the clarification of unclear fragmented investments in overseas property. First of all, this paper begins with the definition and examples of applying conventional and advanced blockchain technology and then describes the work of smart contracts and the comparison between regular contracts and smart contracts. The paper also evaluates the nature of fragmented investment in overseas property and its associated risks before suggesting the use of blockchain and smart contracts for a new institutional structure of the investment platform. This study demonstrates how the technologies can advance data sec, promote trust in transactions, and how investment can be automated. It can be concluded that blockchain technology, and smart contracts, can enhance Overseas Real Estate Investment by increasing transparency and decreasing the investment threshold as well as the instances of fraud. This study also presents an analysis of the potential difficulties that may be encountered in real-world applications and a recommendation of what may be done in subsequent studies. On one hand, this research offers a new perspective to the theoretical world, on the other hand, it offers practical problems and solutions to the practitioners who are a part of overseas real estate markets and businesses by steadily helping the overseas real estate markets to move in the fairer and more transparent direction.
Keywords:
Blockchain Technology; Smart Contracts; Overseas Real Estate; Fragmented Investment; Investment Transparency.
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0