IBM Hyperledger Blockchain Course Project - Leveraging on enterprise design thinking my team propose a blockchain solution to improve real-estate asset liquidity in Singapore.
-With GH link.
3. OUR COMPANY
Estate Exchange streamlines the investment experience
for investors, property owners, buyers, agents, and
unlocks liquidity options for traditionally illiquid assets.
We have created tokenized, digital contract platform to deal,
contract and transaction management in the online space
that speeds up the entire process. Ownership Redefined
Members:
Chee Kian (Sam) Jia Ming
Stanley Raj
Wee Kim We Le
7. 03: Heuristic Evaluation of Blockchain Application in Real Estate
Need for a common database
Multiple entities can modify database
Improve trust among entities
Opportunity to remove intermediaries
Reduce Transaction Dependence
Database are siloed and not shared
Data are modify in siloed database
Lack of trust among entities
A need for intermediaries to operate
Transaction Dependence
Opportunities Current Process
9. 05: Benefits from Key Blockchain Properties
Provenance
All parties are able to view relevant historical
data easily
Immutability
Immutable right of ownership of digital asset/
token. Mitigate risk of double spending
Consensus
Buyers, sellers and any other relevant parties
give consensus and sign on digital doc and
update to World State to simplify process
Finality
High finality for all transaction data without risk
of fraud.
All transactions and exchange of asset are final.
Facilitate auditing of transactions, a secure
source of proof (trust) that transaction occurred.
10. 06: CURRENT PROBLEMS & EXISTING SOLUTIONS
Existing Solutions
Current Problems
Rely on realtor or online property portals
for the latest estate data.
Relying on intermediaries to navigate
through the transaction process or DIY
Admin staff
Risk of making bad decisions based on different data from
different mediums - newspaper, web portal or agents for
updates, availability, transactions
Asset transactions involves brokers, lawyers, insurance
providers and each requires extra fees
(more time-consuming and more room for human error)
Deciding the latest/correct version of hard copy docs
Data is trapped in organizational silo Check from different sources manually
Risk of transaction fraud Traditional auditing process
12. 08a: Participants’ Needs
TRANSACTION SPEED
Needs the execution of real estate
transaction to be quick and precise to
improve cash-flow during crisis
Developers
& Owners
Buyers
COST & COMPLEXITY
Wants the process of the property
transaction to be less complex, so a to avoid
incurring intermediaries service fees
RELIABLE REAL-TIME DATA
Needs accurate info for fast, accurate
property transactional decision making
13. 08b: Participants’ Needs
AUDIT & SPEED
Needs a way to streamline the
transaction documentation work and
quickly audit for fraud and errors
Government
Banks
ELIGIBILITY CHECK
Needs a way to quickly and accurately
verify buyer's eligibility and capability to
purchase the property
REGULATORY COMPLIANCE
Needs transactions to comply with
government regulations and approval before
proceeding with transfer of ownership
14. 08c: Participants’ Needs
INSURANCE Co.
Needs to accurately verify asset status before
processing of insurance issuance and claims
LAWYERS
Need to ensure seller and buyer sign on the
legal document , may have addendum and
respond to clarifications, if any
REAL ESTATE AGENT
Needs up-to-date and quick market data, and
streamline ownership transfer process to recommend
the best options and process with property sale
Lawyers
Real Estate Agent
Insurance
15. 09: Hills Statement
Main Hill:
Property sellers and buyers
able to skip multiple
intermediaries to quickly to
complete the real estate
transaction and encash
(for sellers) almost
instantaneously.
Sub Hill 2:
Buyers can get meaningful
insights and buying
recommendations via AI
Sub Hill 1:
Sellers & buyers can transact
without cash using native
currency in an open
decentralized marketplace
16. MVP #01
10: MVP Priority Grid
Shared Transparent
immutable record, viewable
by permission
Vastly reduce document trail
needed to facilitate a
property transfer
Permissioned query by
government / banks to check
buyer's eligibility and
capability to buy
Banks/Govt have a shared
portal to easily and
accurately check buyer/seller
financial and regulatory
compliance
17. 10a: Defining MVP #01
Main Capabilities (Big Bets)
1. Instantaneous Transfer of Ownership
Other Capabilities
1. Digital identities of all participants
2. Policies/regulations/legal doc
embedded in smart contract for
participants to fulfil or signoff
3. All parties able to access all historical
real-time data from decentralised
sources
4. Monetary transactions executed using
smart contracts
User / Customer Value
1. Speedy encashment for seller
2. Speedy asset purchase for buyer
3. Fast and accurate purchase eligibility audit
for Banks and Govt agencies
4. Low 3rd-party need for buyers looking to
invest in properties
What We Want to Achieve
1. Speed and encashing
2. Effectiveness of smart contract execution
3. Increased customer satisfaction level
18. 11: Current Process for Property Purchase
Current process from date of Option-to-Purchase to Sales completion, the
buying process in Singapore takes around 10-12 weeks.
19. 12: Identifying Process Improvement with Blockchain
Instantaneous
Financial eligibility
checks & faster
transaction
settlement
Digital signing of
documents with
Smart-Contracts
removing Lawyer’s
involvement
Vastly improve the speed in
sale completion process
Option-to-Purchase
(1% Booking Fee)
Obtain
Approval-in-Principle
from the bank
Selection of Mortgage
Loan
Pay Stamp Duty
Remaining Payment
(Cash /CPF/ Bank Loan)
Exercise
Option-to-Purchase
(4% Exercise Fee)
Week
2
Week
4
Week
10-12
Yey!
Yout New
Launch
Home
Sign Sales &
Purchase at
solicitor’s law firm
Completion of Sales &
Purchase at Law Firm
20. 13: Process with Estate Exchange
Total
Timeframe
Reduced
By 91 %
Obtain
Approval-in-Principle
from the bank
Selection of Mortgage
Loan
Exercise Option to
purchase and proceed
with Sales & Purchase
(4% Exercise Fee)
Remaining Payment
(Cash /CPF/ Bank Loan)
Option-to-Purchase
(1% Booking Fee)
Pay Stamp Duty
Completion of Sales &
Purchase at Law Firm
Day
2
Day
3 - 4
Day
1
New Improved
Process with
MVP #01
Reducing 12 weeks
process down to 1 week.
22. 14a: Asset: Transaction Lifecycle
Change
Ownership
Approve Building
Plan, Permit to
build & CSC / TOP
Approve Building
plan & structure
approval
DEVELOPER
BUYER /
OWNER
Bank Loans
Presales Agreement
Transfer property
Endorse Ownership
change in Title Deed
LAWYER
Bank Loans
Government Agencies
New BUYER
Issue Title
Deed
Bank Loans
Legalise Transaction
23. 14b: Summary of MVP 1
MVP 1 scope:
Implement policies and embedding rules and validation checks in smart contracts, as well as digitising contracts, such as title deeds.
Blockchain enables:
1. Digital identity of all participants established with their permissions.
2. Smart contracts embed lifecycle of buying and selling and participants requirements/conditions (of contracts) and validates they are being
followed.
3. Eligibility checks on govt regulations embedded in smart contracts.
4. Buyer / Sellers can submit required info online to bank, developers, govt as well as sign electronically on contracts, without going down
physically to firms and achieve Consensus. Vastly reduce paper trail needed to facilitate a property transfer using a single source of info
in public/private decentralized ledger
5. All participants able to view real-time status of real estate transactions as well as history
Seller may get
property agent
sell property or
DIY
Eligibility
Checks on
buyer in smart
contract
Owner who
owns Property
sells property
in Property
Portal
Property
Development &
Launch
Eligibility
Checks on
buyer in smart
contract
Buyer buys
property using
Property Portal,
sign digital title
deed. SLA notified
24. 15: Strategy implementation Plan
Roll out blockchain network to a wider
participating members, upon success of trial
network to benchmark network performance
Test out the POC trial network, to
evaluate errors and successes to polish
blockchain solution and user experience
Utilising network policies to develop smart
contracts, channels, and roles on Trial network
With the success of network performance, platform
will be roll-out to a wider network of end users
Development of the network policies as a guiding
blueprint for development of POC
Roll-Out Blockchain
Network
Trial Blockchain
Network
Develop
Proof of Concept
On-board
End-Users
Defining
Network Policies
25. 16: Action Plan : Roll-Out Plan
Phase Agenda Description Duration
1
Policy
Development
1.1 Working with Founding Network Participants 1 - 2 weeks
1.2 Defining Network Policies / Regulatory Compliance 1 week
1.3 build & develop test network 2-3 weeks
2
Network
Development
1.1 On-board Network Participants & End-users
1.2 Membership roles and incentives
1.3 Platform Development training
1.4 Platform training workshops for network participants
1.5 Platform workshop of End-users
4 weeks
3 Monitoring
1.1 Network performance.
1.2 Fixing bugs
1.3 Network Participant feedback
1 week
4 Analyse
1.1 Usability feedback
1.2 Benchmark Network Performance
1 to 2 months
5
Future MVP
Development
1.1 Future MVP iteration development 2 weeks
26. 17: AGILE
All parties able to access
all historical and real-time
data from decentralized
ledger, Transaction
execution & transfer of
ownership via smart
contracts
Tokenization of property
and transaction in
decentralized
marketplace without cash
using ESEX native
currency
AI for predictive analytics
for advertising,
matchmaking (real estate
Tinder) & investment
recommendations
28. 20: Contract & Transaction Model - MVP 1
Create a real estate transaction instance
Inputs: ID, builder,, price, seller, buyer, date/time of purchase
Outputs: ID.status
Transfer real estate transaction:
identifier: 1234567890
proposal:
Inputs: {ID, builder, price, seller, buyer, date/time of purchase}
signature: input*seller, output*buyer
response:
output:
{ID..oldOwner=seller, ID.newOwner=buyer, date/time of purchase}
signatures:
output*seller
output*buyer
output*gov
Once created, all details are stored in the world state.
Transaction to be endorsed according to endorsement policy within the smart
contract.
Sell House Transaction:
Inputs: ID, price, seller, date/time of selling
Outputs: ID.status
InstalPayment Transaction:
Identifier: 1234567890
Inputs: typeofPayment, totalAmtToPay,
instalmentAmt, bank, PaymentDate
Output:
{ID.outstandingAmt=ID.totalAmtToPay-house1.a
mtPaid,
ID.totalAmtToPay=ID.outstandingAmt}
Signature:
output*buyer
output*bank
30. 22: Modeling Business Network
CA
P1
P2 P3
Endorse
ORG
A1
CA O1
O2 O3
Channel
01
Legend
CA : Certification Authority
P# : Peers
O# : Ordering Services
A# : Application
S : Smart Contracts
L : Ledgers
P : Policies
Certificate User
Wallet
Ordering
ORG
S
S
L
L
L L
L
L
CA P1
P2 P3
L
L
L
Other
ORG
Channel
02
Blockchain
Network
Channel
03
P
31. 23: Ledger Private and Public State
Private State Public State
Estate Owner All Estate
Estate1: {ABC}
Estate2: {DEF}
Estate3: {GHI}
Estate1: {2020-02-28, 400000, 678901, 99}
Estate2: {2017-05-03, 1000000, 634901, FH}
Estate3: {2018-08-26, 500000, 634901, 99}
Viewable to:
Seller, Bank,
Government,
Lawyer,
Insurance.
Viewable to:
All Orgs.
Estate1: {ABC, good, 480000 }
Estate2: {DEF, default, 800000}
Viewable to:
Bank A Estate2: {2017-05-03, 1000000, 634901, FH}
Viewable to:
All Orgs.
Filter:
Free-Hold
Restricted visibility of sensitive informations. Restricted visibility of general estate informations.
32. 24: Roles & Channels
End -
Users
Owners
Buyers
Developers
Government
Banks
Lawyers
Insurance
Exchange Regulation Financials Asset Status
R / U /
R / U /
R / U /
R /
R /
R /
R /
R /
R /
R /
R / U/ C
R /
R /
R /
R /
R /
R /
R /
R / U/ C
R /
R /
R /
R /
R / U / C
R /
R /
R /
R /
Legend
R : Read
U : Update
C : Create
Network
Policies
R / U
35. 26: MVP 1.2 : How it Works
Owner lists
property to sell
Property is
checked and
appraised digitally
Es.Ex. tokenizes
virtually and
divides into
fractions (MVP2)
Buyer purchase
tokens
representing
property value
Prices are set
by the
balance of
buy and sell
orders
Tokenization for Liquidity
MVP 2
Fractionization
36. 27: Novelties of Estate Exchange platform in MVP 2 and MVP 3
One to One
exchange of
properties
between two
parties
Developers
would be
able to
pre-launch
properties to
raise funds
Free
property
valuation
reports
Selling
Custom AI
analysis
reports to
generate
revenue
38. Contract & Transaction Model - MVP 3: AI recommendations
AI Price Recommendation Transaction:
Inputs: postalCode, typeofTransaction //identify district code
Outputs: recommendPrice
Algorithm engine to develop to compute the recommendation will be on
another server outside blockchain network. Training model will be
fine-tuned along the way.
AI Track Past Transaction:
Inputs: fromTransactionDate, toTransactionData, amtTransacted,
typeofProperty
Outputs: overBuying //boolean
Algorithm engine to develop to compute the recommendation will be on
another server outside blockchain network. Training model will be
fine-tuned along the way.
39. 28: SWOT ANALYSIS
>> Hacks
>> Data Leaks
>> Malicious Data
>> Real time fast transaction
>> Transparency & traceability
>> Immutability & Security
>> Low cost, no middleman
>> Low Volumes
>> Customer distrust
>> Regulatory compliance
>> Crypto volatility
>> User experience improvement
>> International markets
>> A.I. for analysis
>> Crowdfunding
WEAKNESSES
STRENGTHS
OPPORTUNITIES
THREATS
40. 29: Summary
Alternative financing for developers - Developers would be able to
raise capital through pre-launching it in the network and enabling more
buyers to jointly own a property. Also attracts crowdfunding.
Tokenization and Fractional ownership - Increases liquidity and
also makes it possible for the company to fractionalize to trade. Instead of
buying whole property, buyers can buy tokens representing a percentage of
the property.
Faster Transactions & Low entry cost - Removing middleman and
tokenization reduces the costs and increases the speed of creating, issuing
and exchanging the property. Reduced entry cost allows more buyers to
enter the property market to buy all or a part of a property.
