An escrow is a contractual arrangement in which a third party receives and disburses money or property for the primary transacting parties, with the disbursement dependent on conditions agreed to by the transacting parties.
Published in Chapter:
Cost-Effective Solutions Using Smart Contracts in Blockchain for Commercial Residential Midrise Building Developers and Consumers
Copyright: © 2023
|Pages: 38
DOI: 10.4018/978-1-6684-7664-2.ch010
Abstract
Developers of real estate projects such as commercial, official, and residential properties are keen to have high return on investment (ROI), and this study was carried out to demonstrate the need and implementation of smart contract using blockchain technology to enhance ROI. Blockchain technology, with the dual objective to achieve 25% ROI, in the design, construction, and sale of a midrise building, with design life of 50 years. All transactions involving stakeholders' critical activities of the project, such as acquisition of land, design, construction, marketing and selling of office floors, shop spaces, and residential flats in general and design and construction phase in particular, were identified and their influence in the project cost and project schedule are assessed. By the implementation of smart contract using blockchain technology in the construction and design phases of this project, it resulted in enhanced ROI value of 42%, which was 17% higher than the expected value, without sacrificing the quality, durability, and specifications, as per standards and regulations.