PROJECT_ON_BLOCKCHAIN_TECHNOLOGY_IN_REAL_ESTATE.pdf

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ABSTRACT
The rise of cryptocurrencies, such as blockchain, has Leveraged numerous opportunities in the field of
real estate Technology, drawing investors, legal authorities, and the Estate industries. Bitcoin is based on
blockchain technology and its worth is independent of the value of a tangible asset, an organisation, or a
country's economy. Instead, it uses encryption to track all transaction,

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Originating Company BAZE UNIVERSITY IDEA PROJECT PROGRAM
Project Title
LEVERAGING BLOCKCHAIN TECHNOLOGY FOR TRANSPARENT AND
SECURE REAL ESTATE TRANSACTIONS
Project Location: NIGERIA/ONLINE
Document Type PROJECT DESIGN & COMMERCIAL VALUE

Document Status PROJECT
Originator / Author GROUP 15
GROUP MEMBERS
 NDIDIAMAKA GLADYS ISRAEL
 ISMAIL ABUBAKAR )
 OLAWALE ISRAEL
 UMAR MOHAMMED GONI
 JAMILU ABDULLAHI
 JABIR ABDULLAHI DADI
 JAKTU ANAS HARUNA
 MUSTAPHA ISMAILA OJIDU
 IBRAHIM ISAH
HSSE RISK: HIGH
Issue Date 25
TH
AUGUST, 2024

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TABLE OF CONTENTS

ABSTRACT--------------------------------------------------------------------------------------------------------------------------------------------------1
INTRODUCTION----------------------------------------------------------------------------------------------------------------------------------------1.0
OBJECTIVES-----------------------------------------------------------------------------------------------------------------------------------------------1.2
PROBLEM STATEMENT---------------------------------------------------------------------------------------------------------------------------------1.3
SCOPE OF THE STUDY----------------------------------------------------------------------------------------------------------------------------------1.4
LITERATURE REVIEW ----------------------------------------------------------------------------------------------------------------------------------2.0
THEORETICAL FOUNDATIONS ---------------------------------------------------------------------------------------2.1
BLOCKCHAIN TECHNOLOGY AND ITS APPLICATIONS IN REAL ESTATE IN NIGERIA -------------2.2
APPLICATIONS IN THE NIGERIAN REAL ESTATE SECTOR ---------------------------------------------------2.3
STAKEHOLDER ANALYSIS------------------------------------------------------------------------------------2.4
FRAMEWORK DEVELOPMENT ---------------------------------------------------------------------------------------------------------------------------2.5
RESEARCH METHODOLOGY ---------------------------------------------------------------------------------------------------------------------------3.0
SURVEY DESIGN AND SAMPLE FRAME -----------------------------------------------------------------------------3.1
META-ANALYSIS OF SELECTED LITERATURE REVIEW -------------------------------------------------------3.2
RESULTS AND DISCUSSION --------------------------------------------------------------------------------------------4.0
COMMERCIAL VALUE-------------------------------------------------------------------------------------------------------------------------------------5.0
COST ANALYSIS-----------------------------------------------------------------------------------------------------------------------------------------------5.1
RISK ANALYSIS------------------------------------------------------------------------------------------------------------------------------------------------5.2
MARKET ANALYSIS------------------------------------------------------------------------------------------------------------------------------------------5.3
REVENUE MODEL---------------------------------------------------------------------------------------------------------------------------------------------5.4
REFERENCES ------------------------------------------------------------------------------------------------------------6.0

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ABSTRACT

The rise of cryptocurrencies, such as blockchain, has Leveraged numerous opportunities in the field of
real estate Technology, drawing investors, legal authorities, and the Estate industries. Bitcoin is based on
blockchain technology and its worth is independent of the value of a tangible asset, an organisation, or a
country's economy. Instead, it uses encryption to track all transactions. Globally, Bitcoin trading has
earned more than $2 trillion. Because of these, real estate prospects, Nigerian youngsters have turned to
virtual currencies to build properties and wealth. This study looks at the acceptance and sustainability of
real estate technology through blockchain in Nigeria. A survey method using a non-probability purposive
sampling technique and a homogeneous 320 responses were collected using an online survey.
Blockchain is the most popular cryptocurrency, with 97.5% acceptance, and is predicted to be the top
virtual currency over the next five years. The research findings will assist scholars and authorities in
understanding how to Leverage Blockchain Technology for Transparent and Secure Real Estate
Transactions, thereby ensuring its long-term viability.

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1. INTRODUCTION

Leveraging Blockchain Technology for Transparent and Secure Real Estate Transactions using Nigeria as the case study is a
foundation of global economies, that have long faced issues such as lack of transparency, inefficiencies in transaction
processes, and security flaws. We know how Traditional real estate transactions can entail several middlemen, substantial
paperwork, and complex regulatory compliance, which can result in delays, increased expenses, and chances for fraud. As the
sector strives to modernize, there is an increasing interest in how emerging technology might address these ongoing
difficulties.

Blockchain technology, which was initially established as the foundation for cryptocurrencies such as Bitcoin, has emerged as
a promising solution for improving transparency, security, and efficiency in a variety of industries, including real estate. At its
foundation, blockchain is a decentralized, immutable database that records transactions across a network of computers,
assuring data security, transparency, and tamper resistance. The real estate market can alter property transactions by
embracing blockchain technology, making them more automated, safe, and transparent.


1.1 OBJECTIVES

The project aims to explore how blockchain technology can leverage the traditional method of real estate and enhance the
transparency, security, and efficiency of real estate transactions in Nigeria. This includes analyzing the current challenges in
real estate transactions and how blockchain can address these issues also explores how blockchain technology can be
implemented to enhance transparency, security, and efficiency in real estate transactions, reducing fraud and increasing trust
among stakeholders in Nigeria.

1.2 SCOPE OF THE STUDY

Key Areas of Focus: Transparency, Security, Efficiency, Legal and Regulatory Compliance, and Market Adoption of Real
Estate in Nigeria.
1.2.1 CURRENT CHALLENGES IN REAL ESTATE TRANSACTIONS
 Lack of Transparency: Real estate transactions often involve multiple parties, creating opportunities for fraud and
miscommunication.
 Inefficiencies: The traditional processes are time-consuming, involving extensive paperwork and middlemen, which
leads to higher costs and delays.
 Security Concerns: The involvement of various intermediaries and the manual nature of documentation increases
the risk of data breaches and fraud.
1.2.2 BLOCKCHAIN TECHNOLOGY OVERVIEW
Decentralization: Blockchain’s distributed ledger allows for data to be stored across multiple nodes, reducing the
risk of centralized fraud.
 Immutability: Once data is recorded on a blockchain, it cannot be altered, ensuring the integrity of transaction
records.
 Smart Contracts: Self-executing contracts with terms directly written into code can automate and enforce the terms
of real estate transactions.

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1.2.3 APPLICATION OF BLOCKCHAIN IN REAL ESTATE
 Transparent Transactions: Blockchain enables the creation of a transparent and immutable record of ownership,
reducing disputes and fraud.
 Secure Data Storage: The use of blockchain for storing transaction records ensures data integrity and security,
minimizing the risk of breaches.
 Smart Contracts for Automation: Implementing smart contracts can automate processes such as property transfers,
reducing the need for intermediaries and speeding up transactions.
1.2.4 LEGAL AND REGULATORY CONSIDERATIONS
 Compliance with Local Laws: The project will examine how blockchain technology can be aligned with existing
real estate laws and regulations in different jurisdictions.
 Regulatory Challenges: Understanding the potential regulatory barriers to the adoption of blockchain in real estate.
1.3 PROBLEM STATEMENT

The real estate business has issues such as lack of transparency, inefficiencies, and security vulnerabilities, which
intermediaries, paperwork, and complex regulations generally cause. With its secure and transparent decentralized ledger,
blockchain technology presents a possible alternative. By incorporating blockchain, real estate transactions can become more
streamlined, safe, and transparent, lowering fraud, costs, and delays. This project investigates the potential of blockchain in
real estate by assessing present obstacles, successful case studies, and resolving legal and adoption constraints, with the
ultimate goal of modernizing the industry through digital transformation.
1.3.1 MARKET ADOPTION AND POTENTIAL CH ALLENGES
 Adoption Barriers: Exploring the challenges that may hinder the widespread adoption of blockchain in the real
estate sector, including technological, cultural, and economic factors.
 Potential Solutions: Proposing strategies to overcome these barriers and encourage adoption

1.3.2 CASE STUDIES
In Nigeria, blockchain technology is being explored to tackle challenges in the real estate sector, particularly with
land title management. The Nigerian government has initiated pilot projects to digitise land records using blockchain
in partnership with private firms. This aims to address issues like land disputes, fraud, and inefficiencies in property
transactions by creating a transparent, secure, and tamper-proof system.

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3
Education and Awareness
Raising awareness among stakeholders is
crucial for acceptance and trust in the new
system.
2
Addressing Local Needs
Solutions are tailored to local challenges, such
as fraud and land disputes.
GLOBAL CASE STUDIES
Government backing is essential for successful
implementation.
Regulatory Support

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2.0 LITERATURE REVIEW
This literature review examines the early state of blockchain technology in Nigeria’s real estate sector from the year 2019-
2022, highlighting successful implementations across different regions and the lessons learned that can guide future adoption.
2.1 Blockchain Technology and Its Applications in Real Estate in Nigeria
Blockchain technology has emerged as a powerful tool for addressing various challenges in Nigeria's real estate sector,
particularly in areas such as land title management, transaction transparency, and fraud prevention. In a country where land
disputes are common, and the process of property registration is often cumbersome and prone to corruption, blockchain offers
a promising solution to enhance the integrity and efficiency of real estate transactions.
2.1.1 Theoretical Foundations
 Decentralization: Blockchain's decentralized nature ensures that no single entity has control over the data, making it
an ideal solution for the fragmented and often opaque real estate market in Nigeria.
 Immutability: The immutability of blockchain records is particularly relevant in Nigeria, where altering property
records has historically been a source of fraud. Blockchain ensures that once a record is entered, it cannot be
changed, thus securing ownership and transaction data.
 Smart Contracts: In Nigeria, smart contracts can automate and enforce the terms of real estate transactions,
reducing the reliance on intermediaries and minimizing the risk of disputes.
2.1.2 Applications in the Nigerian Real Estate Sector
 Land Title Management: Blockchain can streamline the registration and transfer of land titles, reducing the
incidence of fraud and land disputes by providing a transparent and immutable record of ownership.
 Secure and Transparent Transactions: By using blockchain, real estate transactions in Nigeria can become more
secure and transparent, as all parties involved will have access to the same immutable records, reducing the potential
for disputes and fraud.
 Cost and Time Efficiency: The automation provided by smart contracts can significantly reduce the time and cost
associated with property transactions in Nigeria, where processes are often delayed by bureaucratic red tape and the
involvement of multiple intermediaries.
2.2 Case Studies: Successful Implementations of Blockchain in Real Estate Across Different Regions in Nigeria
Several regions in Nigeria have begun exploring and implementing blockchain technology in the real estate sector, offering
valuable insights into its potential and challenges.
2.2.1 Lagos
 Project Overview: Lagos, Nigeria’s commercial capital, has seen pilot projects aimed at digitizing land records
using blockchain technology. The focus has been on creating a secure, transparent, and efficient system for
managing land titles.
 Impact: These initiatives have shown promise in reducing land disputes and accelerating the property registration
process. However, the need for broader regulatory support and public awareness remains critical.
2.2.2 Abuja
 Project Overview: In Abuja, blockchain is being explored as a tool to improve the transparency and security of real
estate transactions. Pilot projects are focusing on automating the property transfer process and ensuring that all
transaction records are immutable.

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 Impact: The use of blockchain in Abuja has highlighted its potential to eliminate middlemen, reduce transaction costs,
and provide a clear, trustworthy record of property ownership. The success of these projects is encouraging further
exploration of blockchain in the Nigerian real estate marke
2.2.3 Ogun State
 Project Overview: Ogun State has been proactive in adopting blockchain for land registry management. The state
government has partnered with tech firms to digitize land records and create a more efficient system for property
registration and transfer.
 Impact: Early results from Ogun State indicate a significant reduction in the time required for property registration
and a decrease in land-related disputes. The project is seen as a model for other states looking to implement similar
technologies.
2.3 Lessons Learned from Nigerian Case Studies
 Regulatory Support: The success of blockchain projects in Nigeria’s real estate sector heavily depends on strong
regulatory frameworks and government support. Clear guidelines are essential for widespread adoption.
 Localized Solutions: Blockchain implementations must be tailored to address specific challenges within Nigeria,
such as land disputes, fraud, and inefficiencies in the property registration process.
 Public Awareness and Education: Raising awareness and educating stakeholders, including government officials,
property owners, and real estate professionals, is crucial for the successful adoption of blockchain technology in
Nigeria.
 Collaboration: Partnerships between the public sector, private companies, and tech firms are vital for driving
innovation and ensuring that blockchain solutions are effectively integrated into Nigeria’s real estate sec

Key Stakeholders in Real Estate Transactions in Nigeria:

INSTITUTIONS STAKEHOLDER ANALYSIS
Government Agencies Land Registries, Legal Authorities Interested in reducing fraud,
improving transparency, and
streamlining land registration
processes
Property Owners Individual, Community Seek secure, transparent, and
faster transactions to protect
ownership rights and reduce
disputes
Real Estate Developers Private Companies, Limited Companies Interested in reducing
transaction costs, minimizing
delays, and enhancing trust
with buyers.
Financial Institutions Banks, Mortgage Lenders Focus on secure, transparent
processes to reduce risks and
ensure compliance.

Law Firms and Notaries Governmental Bodies Interested in automating and
securing the legal aspects of
property transactions to
enhance efficiency

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Technology Providers Online Exchange builders Aim to develop and
implement blockchain
solutions tailored to the real
estate sector’s needs


Framework Development
Conceptual Framework for Integrating Blockchain into Real Estate Transactions in Nigeria:

.



































Digital Land Registry stored on a
blockchain, ensuring immutable,
transparent records of ownership and
transactions.
Automate property transactions,
including payments, transfers, and
legal obligations, reducing the need for
intermediaries.
Implement programs to educate
stakeholders on using and
benefiting from the blockchain
system, ensuring smooth adoption
and operation.
Develop interfaces for all
stakeholders (government,
property owners, developers,
financial institutions) to interact
seamlessly with the blockchain
system.
Ensure that blockchain
applications align with local laws
and regulations, with government
oversight.
DATA LAYER

SMART CONTRACTS
EDUCATION &
TRAINING
STAKEHOLDER
INTEGRATION
REGULATORY
COMPLIANCE

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3 RESEARCH METHODOLOGY

A questionnaire with a non-purposive sampling technique
The following questions were raised by the goals of this study:
i. Given the global use and economic benefits of Real Estate Technology, how can it influence its adoption decision and
sustainability?
ii. What are the barriers to Blockchain adoption and how may these problems with a homogenous approach aimed at gathering
data from the target participants employed? The following subsections describe the survey design, data analysis, methodologies
used, results, and discussions.
Analysis of Successful Implementations of Blockchain Technology in Real Estate Across Abuja Regions in
Nigeria
Blockchain technology is gradually being recognized as a solution to many of the challenges faced in Nigeria’s real estate
sector, such as land disputes, fraud, and inefficiencies in property transactions. Several regions in Nigeria. we used Abuja as a
case study. Haven’t started exploring and implementing blockchain-based solutions with varying degrees of success, here is
an analysis of notable implementations of the Abuja region:
Implementation Overview:
 Project Focus: Blockchain for Real Estate Transactions
 Partners: Abuja Municipal Area Council, Blockchain Technology Firms
 Objectives: To automate the process of property transactions and ensure all records are secure and immutable.
Key Success Factors:
 Pilot Projects: Abuja’s implementation started with pilot projects that allowed for testing and refinement of the
blockchain system before wider adoption.
 Stakeholder Engagement: The active involvement of local stakeholders, including real estate developers and legal
professionals, was crucial for the project’s success.

TABLE 1. META-ANALYSIS SELECTED FROM THE LITERATURE REVIEW


NO

AUTHORS

TITLE

METHOD

RESULT

1

Al-Amri et al. (2019)
Cryptocurrency adoption:
current stage, opportunities, and
open challenges


Literature review

Reveal a deficient study on the factors that
notably affects
the acceptance of cryptocurrency


2

Ibrahim & Saleh (2022)
Blockchain Investment During
COVID-19: The Critical Factors
Influencing its Adoption


. Survey: Web-based
questionnaire
2. PLS-SEM


Opinionated behavioural control and a lack of
preconceived alternatives are favourable factors to
adopting Blockchain investment


3

Alzahrani & Daim (2019)

Evaluation of the cryptocurrency
adoption decision using
hierarchical decision modelling
(HDM)

Hierarchical decision
model

Recognized investment opportunity, personal
standards, commercial acceptance, confidentiality,
and universal resolve as the factors influencing
cryptocurrency users’ adoption

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4

Almajali et al. (2022)
Factors influencing the adoption
of Cryptocurrency in
Jordan: An application of the
extended TRA mode


Theory of reasoned
action (TRA)

They discovered that if there is a good attitude
supported by positive subjective norms,
Jordanians are more likely to use digital currency


5

Sukumeran et al. (2022)


Cryptocurrency Adoption in
Malaysia


. Survey: Questionnaire
2. SEM;
3. PLS-SEM
4. Behaviour Theory
5. Diffusion Innovation
Theory

They identified, compatibility, trialability,
complexity, observability, and perceived value as
factors affecting cryptocurrency acceptance in
Malaysia as opposed to relative advantage and
perceived danger, which were determined to be
inconsequential





SURVEY DESIGN AND SAMPLE FRAME

The goal of this survey is to collect quantitative data through multichoice and ranking questions in which participants select
options that best convey their ideas.
Non-probability purposive sampling with a consistent approach was employed to collect factual data from the primary digital
currency and cryptographic ledger drivers. The participants are mostly members of the Blockchain Nigeria user group
(BNUG), a subset of the Organization of Blockchain Technology Users (OBTU) that covers Nigeria's six geopolitical zones.
Because the BNUG is Nigeria's principal blockchain operator and holder of Blockchain exchanges, the poll can be used to
draw broad conclusions. The questionnaire comprises two sections. The first portion discusses the respondents' background
information, while the second half is about the internal and environmental variables that influence their professional and
personal lives. Google Forms is used to build the questionnaire, which is then distributed by Telegram, email, and WhatsApp.
Overall, 321 replies were received. The questionnaire is divided into two sections: the first focuses on the respondents'
background information, and the second on the internal and external elements influencing their practice and personal
experiences. Google Form is the technology used to construct and distribute the questionnaire via Telegram, email, and
WhatsApp. Overall, 321 replies were received.

4.2 Data analysis tools and techniques

Microsoft Excel is the tool of choice for organizing and displaying the data.






5. RESULTS AND DISCUSSION

Discussion on the results obtained from the survey are as follows:

5.1 Demographic feature of respondents

The demographic characteristics of the respondents, as depicted in Table 3, show that 83.5% of the respondents trading in
cryptocurrency are male. This gender disparity could be attributed to the females’ lack of exposure and inability to withstand
the rigours and uncertainties of cryptocurrency. Similarly, Blockchain volatility and various degrees of risk could account for
the gender disparity in the cryptocurrency ecosystem. At the same time, the dominant age group falls between 31 and 40 years
(56.1%), and the closest to it is the age range of 18 to 30 years (32.7%).

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1. Region North East North Central North West South East South-South South West Total
2. Gender Male 9 30 17 31 26 144 257
Female 1 20 5 9 6 17 58
Total 10 50 22 40 32 161 315

Table 2 Demographic features of the respondents





























Table 3 Cross-tabulation of gender and region of the Country


Demographics Frequency Percentage %
Gender Male 257 83.0
Female 58 17.0
Total 315 100
Age 18–30 105 32.7
31–40 170 56.1
41–50 32 10
51 and above 4 1.2
Total 321 100
Qualification GCE/SSCE 15 4.7
NCE 4 1.2
HND 14 4.4
BSC 142 44.3
MSC 121 37.8
PHD 15 4.7
OTHERS 9 2.8
Total 321 100
Profession ICT 90 28




Business intelli-
gence
78 24.3
Teaching 25 7.8
Engineering 29 9
Accounting 20 6.2
Others 79 24.7
Total 321 100
Region of the North East 10 3.1
Country North Central 68 21.2
North West 20 6.2
South East 40 12.5
South-South 22 6.9
South West 161 50.2
Total 321 100

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Fig. 1 Cryptocurrency Industry Area of Focus

According to the poll, this represents 86.9% of the population in Nigeria's Blockchain ecosystem. In terms of geographic
participation, the southern section of the country appears to be extremely active. The South-East, South-South, and South-
West all have 69.6% involvement, with the South-West outperforming the others. This disparity could be attributed to
socioeconomic norms that oppose Western schooling in the North. While Table 3 demonstrates a considerable difference in
male participation compared to females in the southwest region, there is not a single female in the northeast, implying gender
exclusivity in that region.

5.2 Experience in the use of blockchain and cryptocurrency

The following subsection presents the respondents' thoughts and experiences with blockchain and cryptocurrency use:

5.2.1 Cryptocurrency Industry Focus

Figure 1 demonstrates that the majority of respondents (69.2%) participate in exchange operations involving fiat cash and
cryptocurrency. This industry has the highest trading volume, indicating inflows and outflows from the digital currency
ecosystem to the financial market and physical economy. On the other hand, 28.3% of respondents work in the payment and
wallet areas, while only 10.9% work in the mining sector.

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Fig. 2 Which Cryptocurrency is the most popular


Table 4 Factors considered to be more critical for the adoption of cryptocurrency


FACTOR MOST
important Particularly important

Above-
average
importan
ce

Avera
ge
Import
ance

Below-
average
importanc
e

It is not
particul
arly
importa
nt

Most
unimpo
rtant

Exposure to websites with Blockchain at checkout 48 82 62 36 8 38 47
Improved government legislation 65 79 46 29 20 47 35
Education about Blockchain 64 69 74 28 9 27 50
Advertising about Blockchain 28 38 53 64 45 55 38
More stable Blockchain price 35 72 58 48 22 42 44
Major banks accepting proceeds of Blockchain sales
Major retail websites (e.g., Jumia, Konga, Amazon)
accept Blockchain
57 83 48 15 16 41 48
41 92 103 29 12 10 26
Major shopping malls accepting Blockchain 79 103 34 18 17 26 44
Simplified procedure for Blockchain purchase 106 83 35 19 9 28 41
More secure Blockchain storage methods 125 68 32 14 7 35
40
Government stamps for approval 59 82 55 28 17 31 49
Transactions savings on Blockchain passed to
consumers
50 79 86 43 21 15 31
Better tools for e-commerce merchants 66 100 49 12 17 34 43
Faster transaction process 79 98 45 12 12 37 38
Existing POS systems changed to accept
Blockchain
Increased Payment system and processes

37 74 74 32 18 32 54

41 89 102 32 15 1 0 3 2

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Table 5 Factors considered to be advantages of virtual currency

Factors No Advantage Meagre
advan-
tage
Low
Advan-
tage
Below
Medium
Advantage
Medium
Advan-
tage
Above
Medium
Advantage
High
Advan-
tage
Very High Tota
Advantage
Anonymity 70 11 9 8 30 44 84 65 321
Low transaction cost 55 16 4 6 18 40 107 75 321
No central authority 53 25 10 12 35 52 67 67 321
Low cost for small transaction 54 18 5 8 11 33 113 79 321
International acceptance 50 13 8 3 14 16 61 156 321
Required expertise 56 22 46 52 71 27 22 24 320
Exchange risk 133 28 45 31 22 20 18 23 320
Theft and hacking 155 38 39 24 14 12 13 25 320
Technical hitches 145 37 48 25 18 17 17 13 320
The volatility of the exchange rate 63 24 36 42 56 45 30 24 320

CHALLENGES AND SOLUTIONS:
 Technical Infrastructure: The need for reliable digital infrastructure was a challenge, addressed by
investing in necessary technology and training for government staff.
 Regulatory Compliance: Ensuring that the blockchain system adhered to local laws was a key focus,
achieved through regular consultations with legal authorities
IMPACT:
 Improved Transaction Speed: The use of blockchain has significantly sped up the process of property
transfers, reducing reliance on intermediaries.
 Enhanced Trust: The immutable nature of blockchain records has increased trust among stakeholders,
particularly in the context of property ownership verification.


COMMERCIAL VALUE


Market Analysis of Blockchain Technology in Real Estate in Nigeria


1. MARKET SIZE AND GROWTH POTENTIAL

Abuja's real estate market is expected to grow at a CAGR of 9.21% from 2024 to 2028, reaching a transaction value
of $21.70 billion by 2028.
The city's population growth, rising middle class, and increasing foreign investment drive this growth.

2. CURRENT CHALLENGES

Unreliable record-keeping at state land registries, prone to errors, manipulation, and losses. Cumbersome
process for registering land transactions, often requiring multiple visits to the registry and pressure to pay
inducements.
The lack of reliable records limits land transactions to basic rentals, sales, and limited mortgages, all carrying
significant risk.

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3. BLOCKCHAIN'S VALUE PROPOSITION

Blockchain offers a shift from manual, paper-based record-keeping to a more secure, efficient system with easy
retrieval of information and comprehensive access to all property-related transactions.
Blockchain's core features—trust, transparency, and immutability—address the fundamental issues in Abuja's
real estate industry.


4. POTENTIAL APPLICATIONS

Streamlining processes for immediate issuance of electronic Deeds of Assignment, governor's consent, and
Certificates of Occupancy.
Enabling sophisticated financial transactions, such as creating real estate tokens that can be sold to investors,
increasing liquidity and diversifying investment portfolios.
Facilitating cross-border payments and real estate investments, simplifying fund transfers and ownership record
transfers.


5. REGULATORY ENVIRONMENT

Nigeria has faced regulatory challenges in adopting blockchain technology, with the ban and unban of
cryptocurrency in repeated cycles.
Stakeholders must actively engage with regulators to establish frameworks that ensure compliance
without stifling technological advancements.

1. COMPETITIVE LANDSCAPE

Several Nigerian entrepreneurs are seeking to create hubs to address cross-border payments and real estate
investments using blockchain technology.
International examples like Sweden's implementation of blockchain within its countrywide land registry system, in
collaboration with blockchain startup Chroma Way, inspire.

In the Abuja real estate market presents significant opportunities for blockchain technology to address current
challenges and unlock untapped potential. By leveraging blockchain's features, real estate stakeholders in Abuja can
streamline processes, enhance transparency, and attract global investors, contributing to the sustainable growth of
the city's real estate sector.

COST ANALYSIS

DEVELOPMENT COSTS

Discovery Phase: $4,000 - $30,000
UI/UX Design: $6,000 - $45,000
Development and Testing: $28,000 - $210,000
Deployment: $3,000 - $22,500
Maintenance: $5,000 - $37,500

The total estimated development cost ranges from $46,000 to $345,000 depending on complexity and features.

OPERATIONAL COSTS

Infrastructure: Costs for servers, cloud services, and network security, are estimated at $1,000 -$5,000 monthly.

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Staffing: Salaries for developers, project managers, and support staff, which can range from $5,000 to $20,000
monthly.

Compliance: Legal and regulatory compliance costs, are approximately $2,000 - $10,000 annually. Total
operational costs could range from $8,000 to $35,000 monthly.


MARKETING COSTS
Brand Development: Initial branding and website costs, estimated at $3,000 - $15,000. Digital
Marketing: Ongoing digital marketing campaigns (SEO, social media, PPC),
approximately $2,000 - $10,000 monthly.

Networking and Events: Participation in industry conferences and networking events, around
$1,000 - $5,000 per event.
Total marketing costs could range from $6,000 to $30,000 for initial setup and $2,000 to $10,000 monthly for
ongoing efforts.

The total initial investment for developing a blockchain application in real estate within Abuja could range from
$60,000 to $375,000, with ongoing operational and marketing costs varying based on scale and strategy.

RISKS ANALYSIS

Regulatory Risks

Lack of consistent regulatory framework governing blockchain-based real estate transactions across different
jurisdictions uncertainty around legal recognition and enforceability of blockchain-based contracts, titles, and
records Potential classification of tokenized real estate as securities subject to complex legal requirements
Navigating varying property laws and securities regulations across regions


Technical Risks

The complexity of blockchain technology requires a substantial learning curve for real estate
stakeholders Potential bugs, glitches, or compatibility issues affecting the performance and functionality
of the blockchain system Vulnerabilities in smart contracts, token architecture, and integration with other
systems like exchanges Possibility of malicious actors exploiting loopholes in smart contracts Scalability
issues in handling increasing transaction volumes without compromising performance or security

MARKET RISKS

Resistance to adopting new technologies due to reliance on traditional processes and intermediaries concerns about
job displacement among real estate professionals like agents, brokers, and notaries substantial investment is required
in technology, expertise, and infrastructure, preventing adoption by smaller firms Lack of knowledge about
blockchain technologies in the real estate industry, leading to hesitation from property owners Inadequate liquidity in
secondary markets for tokenized real estate, especially for newer projects to mitigate these risks, real estate
tokenization projects should:
Involve experienced blockchain lawyers to navigate the complex regulatory landscape
Work with skilled blockchain developers to design secure token architecture and smart contracts
Conduct extensive smart contract auditing and formal verification to identify and fix vulnerabilities
Partner with exchanges and implement liquidity-enhancing measures like staking incentives
Educate real estate stakeholders on the benefits and workings of blockchain technology
By proactively addressing regulatory, technical, and market risks, real estate tokenization projects can unlock the
transformative potential of blockchain while ensuring the security and success of these ventures.

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26(2):65–93
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