Blockchain-Based Platform for Secure Second-Hand Housing Trade: Requirement Identification, Functions Analysis, and Prototype Development

Most current second-hand housing sales, contract signing, and other processes require the participation of intermediaries. However, suppose the intermediary refuses to disclose all information to the parties involved in the transactions. In that case, this traditional model can lead to weak supervision and punishment, adverse selection, moral hazards, and weak contract enforcement. Blockchain technology can not only secure the information intermediaries share, encouraging them to disclose information, but can also generate irreversible records of housing transactions for data traceability. Therefore, this study aims to develop a framework based on blockchain technology for the trading of second-hand housing. In this study, a second-hand housing online trading framework (SHHOTF) based on smart contract development is proposed for the second-hand housing business process, aiming to promote second-hand housing transactions. The contributions of this study lie in (1) determining the framework requirements, (2) proposing the functional module of a framework based on the blockchain and designing a complete business process, (3) developing an architecture for integrating blockchain and second-hand housing transaction processes, and developing technical components that support the framework functions, and (4) demonstrating the use case in Britain, analyzing the effectiveness and innovation of the framework. Furthermore, the framework demonstrated a 24% increase in transaction speed compared to the traditional Ethereum public network. The proposed process is highly adaptable within the current second-hand housing domain, and the developed framework can serve as a reference for introducing blockchain technology into other industries or application scenarios.