DECENTRALIZED CROWDFUNDING SYSTEM FOR PROPERTY INVESTMENT USING ETHEREUM BLOCKCHAIN
AKINODE, JOHN LEKAN AND ODUNNAIKE, JOSEPH SEUN, Volume 6 Issue 1, 2022 Pages 136-152, Published: 2023-06-23
Abstract
Investment in Real Estate is an endeavor that requires huge capital which can be gotten from sources such as self-financing, mortgage institutions, commercial banks merchant banks among others. Recently, crowdfunding has become a global practice that is generally used to raise capitals from individuals to finance a project, this is due to its potential to gather huge capital raised from the crowd. Despite the success recorded in Real Estate financing using crowdfunding in some countries, it still has some shortcomings in terms of the platform's accountability and transparency. Crowdfunding projects targeted toward real estate acquisition and development have become increasingly common, changing the nature of real estate investment by allowing Property Developers to access funds from the general public. In this research, we have integrated blockchain technology into the crowdfunding model for property investment to address some of the challenges inherent in the crowdfunding model. The blockchain-based systems are in demand across real estate industry because they are safe, dependable, and decentralized as well as the fact that they are more effective than conventional systems. This research work implemented a crowdfunding system that utilize the Ethereum Blockchain and its native coin (ETH) for property funding and was deployed on Goerli Ethereum testnet and netlify for usage. Integration of Ethereum blockchain network solves some of the issues identified in the traditional systems across real estate landscape. Some benefits of the Blockchain-integrated network include greater security, increased transparency, increased efficiency, and lowered fraud risk