Blockchain technology represents an attractive factor for sectors that are interested in managing and keeping their transactions on a database that records all the movements that take place on each transaction. Therefore, to keep pace with the digital transformation taking place in this field of the real estate sector, this chapter aims to submit a proposal in the Iraqi real estate sector to implement this technology. In addition, the chapter clarified the current mechanism adopted in Iraq in completing real estate rental transactions and the problems that accompany this method. Then, the authors explained the advantages provided by the application of blockchain technology through the smart contract, in addition to eliminating the problems of tax evasion in this sector. Despite the negative points that this technology suffers from, it still represents a safe environment for preserving, managing, and exchanging information.
TopIntroduction
Countries seek to achieve digital transformation for all their sectors in order to facilitate procedures and ensure accuracy in their completion, and Iraq is one of the countries lagging behind the rest of the countries in the digital sector, and the digital transformation is intended to invest technology to convert traditional work into electronic, as the real estate sector produces a huge number of transactions and information. Which needs technologies to facilitate the process of managing it digitally and the ability to complete transactions electronically. Blockchain technology is one of the most important modern technologies that allow the exchange of value and the completion of transactions digitally and ensure the correctness and accuracy of transactions, as it is characterized by transparency and reliability, so it works to manage and secure transactions through the Internet, and at the same time the blockchain technology contributes to the management of information, as it works To preserve information in a decentralized manner, and to organize it in a succession linking information with different transactions of the same thing; meaning that the information of a plot of land can be retrieved since the establishment of its deed to the last person who owned it in a coherent and sequential manner, through which this information is also exchanged between the network parties, and it allows access to and retrieval, and thus it is interested in information from its inception, through its organization and preservation to its availability, so it can be considered as one of the techniques that helps in managing information. Also, the use of this technology in the real estate rental sector contributes to achieving digital transformation, as well as provides many features that facilitate the digital management of the process.
The study problem revolves around two basic points: The first is that the real estate rental sector lacks a link between it and the providers of services such as: electricity, water, telecommunications, and others, as linking the various parties to create secure digital assets which represents one of the goals of the digital transformation. The second is not to dispense with the existence of a real estate broker between the owner and the tenant to complete the process in its current form, and to solve this problem and create a kind of regulation and link between the concerned authorities as well as between the owner and the tenant without an intermediary, blockchain technology can be applied to create a unified and reliable database that brings together the parties. The importance of the study stems from the importance of employing technologies in all sectors to achieve the digital transformation of Iraq, and the real estate rental sector is one of the important sectors in which many relevant parties contribute, such as the Electricity Company, the Water Company, the Ministry of Justice, the Ministry of Housing and others, so finding a network that allows the implementation of transactions digitally and linking those parties Together, they contribute significantly to achieving digital transformation in Iraq. To achieve the goals of this study, it answers several questions, the most important of which are:
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What is blockchain technology, and what are its most prominent applications in the real estate field?
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What is the mechanism currently used in Iraq in the rental of real estate?
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What are the problems of the current mechanism and the opportunities to solve it by using rental blockchain technology?
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How can blockchain technology be applied in the real estate rental sector in Iraq?
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What are the challenges of applying blockchain technology in the real estate rental sector in Iraq to achieve digital transformation?
TopStudy Approach
The study adopted the case study approach, which falls under the descriptive approach, whereby the current situation of the real estate rental sector in Iraq will be studied, a detailed study and then a proposal for the application of blockchain technology in this area to develop the current system in a way that bridges the gaps in it and ensures greater advantages and benefits including in line with the digital transformation of the rest countries of the region.