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A methodology for a real estate blockchain application utilizing geographic information systems (GIS)
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A methodology for a real estate blockchain application utilizing geographic information systems (GIS)

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Content i
A Methodology for a Real Estate Blockchain Application
Utilizing Geographic Information Systems (GIS)
by
Allen Thomas Branch
A Thesis Presented to the
Faculty of the USC Graduate School
University of Southern California
In Partial Fulfillment of the
Requirements for the Degree
Master of Science
(Geographic Information Science and Technology)
August 2018
ii
Copyright © 2018 Allen Branch. All rights reserved.
iii
Table of Contents
List of Figures ................................................................................................................................ vi
Dedication ..................................................................................................................................... vii
Acknowledgments........................................................................................................................ viii
List of Abbreviations ..................................................................................................................... ix
List of Definitions ........................................................................................................................... x
Epigraph ........................................................................................................................................ xii
Abstract ........................................................................................................................................ xiii
Chapter 1 Introduction................................................................................................................. 1
1.1 What is a Blockchain? ....................................................................................................... 3
1.2 The 5 Basic Blockchain Principles? .................................................................................. 4
1.3 How Does the Blockchain Work? ..................................................................................... 5
1.4 Thesis Motivation .............................................................................................................. 5
1.5 Research Objective ............................................................................................................ 7
Chapter 2 Related Work .............................................................................................................. 8
2.1 What is a Blockchain Again? ............................................................................................ 9
2.2 Bitcoin Cryptocurrency Background ................................................................................. 9
2.2.1 What is Bitcoin, really. .............................................................................................. 10
2.2.1.1 Bitcoin vs. Blockchain ......................................................................................... 10
2.2.2 A Brief History of the Blockchain............................................................................. 11
2.2.2.1 Secure Electronic Mail - Credentials without Identity ........................................ 11
2.2.2.2 Secure Electronic Cash ....................................................................................... 13
2.2.3 How Bitcoin Works ................................................................................................... 14
2.2.3.1 Consensus Mechanism......................................................................................... 14
2.2.3.2 One-Way Cryptographic Hash ............................................................................ 14
iv
2.2.4 How Bitcoin Pertains to this Thesis .......................................................................... 15
2.3 Cook County Recorder of Deeds/Velox.RE - Case Study #1 ......................................... 15
2.3.1 Velox.RE’s Blockchain Methodology ....................................................................... 16
2.3.2 How Velox.RE pertains to this Thesis ...................................................................... 17
2.4 Liquid Asset Token - Case Study #2 ............................................................................... 17
2.4.1. LAToken’s Blockchain Methodology18
  2.4.2 LAT Wallet ............................................................................................................... 17
2.4.3 LAT Token Constructor ............................................................................................ 18
 2.4.4 LAT Marketplace ...................................................................................................... 18
  2.4.5 LAT Trading Terminal ............................................................................................. 19
  2.4.6 LAT Blockchain Technology ................................................................................... 20
2.5 Propy Title Registry Blockchain - Case Study #3 ........................................................... 21
2.5.1 Propy ’s Registry Architecture ................................................................................... 21
Chapter 3 Methodology .............................................................................................................. 22
3.1 Blockchain Architecture .................................................................................................. 23
3.2 Application Design .......................................................................................................... 23
3.2.1 Property Keys ............................................................................................................ 24
3.2.2 Hashing Property Keys .............................................................................................. 24
Chapter 4 Results ........................................................................................................................ 27
4.1 Application Development ................................................................................................ 27
  4.1.1 Us Equity Map ..........................................................................................................  30
  4.1.2 “ Toke niz e ” Asset Equity ........................................................................................... 30
  4.1.3 Off-Chain GeoDatabase ............................................................................................... 30
  4.1.4 Ethereum Digital Wallet ............................................................................................... 32
  4.1.5 GeoCryptocurrency Exchange...................................................................................    34
v
Chapter 5 Conclusion .................................................................................................................   37
5.1 Future Work.....................................................................................................................  39
5.2.1 Improvement in Facebook .........................................................................................   39
5.2.2 Improvement in Data Security...................................................................................   39
5.2.3 Improvement in Regulatory Mindfulness ..................................................................   39
References .................................................................................................................................... 40
vi
List of Figures
Figure 1 Simple Blockchain Database Structure  ........................................................................... 2
Figure 2 Centralized (today) vs. Decentralized (tomorrow) vs. Distributed (future)  .................... 6
Figure 3 The History and Future of Blockchain ........................................................................... 10
Figure 4 Propy Data Schema ........................................................................................................ 21
Figure 5 Real Estate Blockchain Protocol .................................................................................... 22
Figure 6. Component View of the Blockchain Design .....................................................................  25
Figure 7 Blockchain Property ID Key and Proof-of-Concept Application  ................................. 26
Figure 8 US Median Equity Map .................................................................................................. 28
Figure 9 ESRI Survey123 Connect App (Cryptocoin Listing Application)  ................................ 29
Figure 10 Facebook as an Off-Chain Database ............................................................................ 31
Figure 11 Ethereum Digital Wallet  .............................................................................................. 33
Figure 12 Gamified Coin Exchange App in Unity ........................................................................34
Figure 13 Survey 123 Connect “Dashboard”................................................................................ 35
Figure 14 WebGIS Cryptocurrency Application (web site) ......................................................... 36
Figure 15 Unity Geocoin Exchange File ...................................................................................... 36
vii
Dedication
To Mom and Dad
Who always went to my ball games
Who always bailed me out of trouble
Who always believed in me
And
To my wife, Katherine
Who lovingly puts up with me
And my “crazy ” ideas
And
To my boys, Xac and Jet
Do not seek permission from the world.


viii

Acknowledgments
I would like to give a special thanks to my Professor and mentor Dr. Jennifer Swift. Not
only did she teach me the intricacies of databasing and APIs, but she also taught me to just go for
it in everything I do.


 


ix

List of Abbreviations
CCD  Colored Coins Protocol
CCRD  Cook County Recorder of Deeds
DApp  Decentralized application
DLT  Distributed Ledger Technology
GIS  Geographic information system
GISci  Geographic information science
ICO  Initial Coin Offering
SSI  Spatial Sciences Institute
USC  University of Southern California
 


x

List of Definitions
Bitcoin  Bitcoin is a well-known cryptocurrency, based on the blockchain.

Blockchain A blockchain is a type of distributed ledger that contains digitally recorded
data in units called blocks. Using cryptography, each new block is then
“ c ha in e d ” to the previous block in a sequential ledger. Every node stores a
complete dataset of the chain.

Bot A bot is an abbreviated name for robot. Bots are automated scripts or
executable commands that write, search or capture information using
programmable algorithms.
Decentralized  
Application  A Decentralized Application or “ DA pp,” an application that generally  
does not require a middleman to operate or manage use r’ s information or  
money.
Colored Coin
Protocol Colored Coin Protocol is code inside a Bitcoin that is used to store metadata
on its blockchain. In theory, it can be used to control off-chain assets.
Distributed  
Ledger  A distributed ledger is another name for a blockchain but is
fundamentally no different than a simple bank ledger —the essential  
premise underlying present-day accounting. Digital ledgers are based  
on the premise that every “ ke y e d ” transaction requires an equal and  
opposite key in order to unlock its data and record new blocks.  
Distributed refers to the fact that the data exists on no single node.

Gamification  Gamification is the inclusion of game elements into an activity in order to
  invoke engagement or create participation.

Genesis Block  Genesis blocks are the first blocks of a blockchain or block 0 (zero).

GeoData Block Geo data blocks are the foundational elements of the blockchain made up
of locational and real estate ownership data that is turned into cryptographic
one-way hash functions.
Initial Coin  
Offering (ICO) Initial Coin Offering ( “ICO ”) is when new cryptocurrency offers to pre-
sell tokens from its overall coin base, in exchange for upfront capital. The  
method is similar to a stock equity Initial Public Offering.

Mining  Mining is when blocks on the blockchain are verified by specialized  
nodes called “ mi ne rs.” This procedure of solving cryptographic puzzles  
earns the miner coins for the computational contribution.  

Node   A node is any participating computing device that is connected to a  
blockchain ecosystem.  


xi

One-Way Hash
Function   A one-way hash function, or digital fingerprint, is a mathematical  
function which takes a string and converts it into a fixed-length binary  
sequence.
Permissioned  
Blockchains  A permissioned blockchain is the consensus process using a verifiable  
digital signature as the unlocking mechanism versus using “ mi ne rs ” to  
verify authenticity of the blocks.  
Pre-mined  
Coin   A pre-mined coin, is a coin that has been already mined (verified), before
set into circulation on a permissioned blockchain.  
 
Provenance Token Provenance token address is code created by Ethereum which embeds its
“Property Ke y ” with a verified identity (Digital ID or private key).

Smart Contracts Smart contracts are lines of code containing self-executing  instructions
that carry out terms of the agreement without the need of external
mechanisms.

Token  Tokens are agreed to mediums of exchange created to represent, store, and
empower its users with a means of negotiability or agreed to value.  

Tokenization  Tokens are agreed to mediums of exchange created to represent, store, and
empower its users with a means of negotiability or agreed to value.  

Wallet  A wallet is software that stores public and private “ ke y s,” (alphanumeric  
characters), hyperlinks, delimited fields and other transactional  
 data.  

Unicorn Unicorn is a euphemism that signifies a start-up company whose
capitalization is more than $1 billion, and gains or creates its own dominant
market share in a short amount of time.  

 


xii

Epigraph  
There are very few fundamental shifts in global infrastructure that can happen in our lifetimes. The
financial infrastructure is one of them, and the Blockchain is changing the way we think about the
transfer of value.  
         —Adam Draper, Interview at BlocCon 2017
 
xiii
Abstract
We are entering one of the most profound epochs of change in real estate technology since
the 1980s brought us mortgage-backed securities and spreadsheets. With over $11 trillion dollars
tied up in idle real estate equity across the United States, homeowners —especially seniors —need
a push-button method to unlock dollars in their homes and properties. Using the Ethereum
blockchain framework, a proof-of-concept GIS application was developed that allows property
owners to convert real estate equity into asset-backed cryptocurrency. Real estate is well-suited
for blockchain technology due to its fixed location and relatively low transaction volume.
However, the blockchain has heretofore lacked any geospatial functionality or intelligence. By
organizing “smart contracts ” into universal geospatial data blocks, the blockchain could hard wire
trust into real estate transactions, and thus revolutionize how real estate is owned and exchanged.
Preventing many from engaging in blockchain applications is usability. The complex user
interface of the Bitcoin blockchain, for example, effectively prohibits all but early adopters and
the technical savvy from participating. The goal of this study, therefore, is three fold: first to
understand the problems and apply GIS intelligence to blockchain technology. Second, to design
a spatially aware blockchain registry for real estate transactions. And third, to produce a
‘ga mi fie d,’ geo-cryptocoin exchange that offers a new and simplified user interface.
By integrating GIS with Ethereum, it has been determined here that a decentralized, peer-
to-peer national real estate ledger is technically feasible.  By integrating GIS with Mapbox, Unity,
ARkit, and Facebook, it has been determined that a fun and engaging geocrypto currency exchange
is technically desirable.

1

Chapter 1 Introduction
Digital “smart contracts, ” when encoded into spatially aware “blockchains,” have the potential
to radically alter real estate finance and technology. The outcome of this thesis is to develop a set
of GIS applications that are able to organize real property data and digital smart contracts into
spatially aware blockchains. A geo-intelligent blockchain, such as this, offers a practical and
secure method to peg location-based real estate transactions to a universal indexing system:
 This application seeks to convert public parcel data into Property-Key encryptions
(cryptographic one-way hash functions)
 Hash functions (keys) form the basis of blockchains
 Public Property Key + Private ID Key = Provenance Token
 Owners and Investors can list and trade Provenance Tokens on a “ g a mi fie d” geo-
cryptocoin exchange application being developed here
Organizing geointelligent blockchains first requires a method that is able to encrypt public
property data into standardized, location-sensitive, searchable “ k e y s. ” Keys are a uniform set of
encrypted letters and numbers that make up the foundational blocks of the blockchain
(cryptographic one-way hash functions). Once a Property Key is combined with a property
owner ’s “Private Identification Key,” it generates a “Provenance Token .” Provenance Token
addresses form the genesis of a geospatial blockchain ledger. This application has the potential to
generate URL-addressable blockchain Property Keys and Provenance Tokens for every physical
property in the United States.
Once a framework for attaching Property Keys to spatially-aware blockchains has been
established, many types of unique and decentralized applications ( “ DA pps ” ) can be run over this
protocol. As proof-of-concept, a webGIS application is being developed that provides property

2

owners with a method to convert real estate equity into asset-backed cryptocurrency via digital
smart contracts and the Ethereum blockchain network.
The financial and legal mechanics of how real estate equity could be fractionally-shared or
reverse-mortgaged is far removed from GIS and beyond the scope of this paper. What is being
developed here are the mechanics to inject geospatial intelligence and functionality into a
blockchain for the purposes of decentralizing real estate transactions. The application modules
being developed include Property Key Encryption, an Off-chain GeoDatabase, and a 'gamified'
Geo-Cryptocurrency Exchange application. See Table 1.
Table 1 – Application Development – Conceptual Framework


3

1.1 What is a Blockchain?
There are many misconceptions about what the blockchain actually is. It is still heavily
associated with Bitcoin or cryptocurrencies. However, it must be recognized that blockchain is a
general term for a simple database structure, or ledger. See Figure 1.
Cryptocurrencies, like Bitcoin, run on a linear framework called a “distributed ledger. ” But
there is not one blockchain nor one single blockchain technology (Flint 2018). Distributed Ledger
Technology (“ D L T ” ) has become the generally accepted term for a blockchain, which is simply a
shared database that is synchronized across the network among “ mul ti ple sites, institutions, or
g e o gra phies ” (Walport 2015, 8).
Figure 1. Example of Simple Blockchain Database Structure

4

Blockchains and smart contracts have the potential to bring about a direct, peer-to-peer
online ecosystem without the need of intermediaries such as lawyers, mortgage and real estate
brokers, title companies, and multiple listing associations. Less vulnerable, more equitable, and
not centralized, the blockchain —in theory —is better suited to combat today ’s cyber-warring and
monopolistic tendencies. As such, the blockchain promises to change the way sensitive
information is trusted and exchanged.  
1.2 The 5 Basic Blockchain Principles
The blockchain would not be possible but for the Department of De f e nse ’s development
of the TCP/IP protocol in 1972. By breaking up digital data in to small packets, it paved the way
for nodes to assemble and disassemble data without central authority. In a blockchain, a single
ledger is shared where each node is updated by an interested party. “ W he n changes are entered in
one copy, all the other copies are simultaneously updated. So as transactions occur, records of
the value and assets exchanged are permanently entered in all led g e rs” (Iansiti and Lakhani,
2017). Marco Iansiti and Karim R. Lakhani of Harvard Business Review sythensized the five
basic principles of a blockchain:
1. Distributed Database - Each participant on a blockchain hosts the complete database.
No one entity hosts or controls the information.  
2. Peer-to-Peer Transmission - Existing centralized database must parse through a central
node. Peer-to-peer networking allows communication directly between users without the
need of an intermediary.  
3. Transparency with Pseudonymity - The blockchain is both transparent (anyone can
view transactions) and anonymous (each user has a unique 30-plus-character
alphanumeric address).
5
4. Irreversibility of Records - Because the blockchain is a one-way synchronous database,
record entries are permanent.
5. Computational Logic - Blockchain transactions are digital which means algorithms and
rules can be programmed to allow for automatic, human-less transactions. (Iansiti and
Lakhani, 2017)
1.3 How Does the Blockchain Work?
If the blockchain is a database where each node hosts a complete data set, think of it as a
running record of all transactions that have ever been executed, where everyone has an exact copy.
It is made of sequential blocks or encrypted entries on a sequential ledger that form a continuously
growing chain. In order to reconcile or sequence the data so that everyone has the same
information, a “consenses ” updates the state of accounts. See Section 2.1 et seq. for more detail.
1.4 Thesis Motivation
1.4.1 The Problem
Like many of the industries dominated by the Internet, real estate is being subjugated to
information monopolization by a handful of giant corporations. Hoarding of information not only
allows for winners-to-take-all in today ’s “super-unicorn e c onom y , ” but it is also exposing the
choke-points in our vulnerable, centralized system. See Figure 2. The enormity of information
collected on us is astounding but typically owned by the select few who have virtually 100%
control over its content and its dissemination. The blockchain, and its distributed ledger, offers an
alternative.  

6

1.4.2 The Value Proposition
Legendary Economist Adam Smith premised that land serves as a pillar of wealth (Smith
1776). Why is this important? Real estate continues to be the most stable form of value. In contrast,
most, if not all the digital coin offerings, including Bitcoin, are not legal tender but more valued
on emotional whim. The weakest link shakeout among virtual currencies is currently underway.  
1.4.3 The Proposed Solution
The consensus among blockchain prognosticators is that digital currencies are only going
to grow in importance (Jessop 2017). Cryptocurrencies are adapting and branching in response to
increased regulatory scrutiny and other valuation concerns. In the current bubble, legacy investors
Figure 2. Centralized (today) vs. Decentralized (tomorrow) vs. Distributed (future)
Graphic Source: http://www.itrelease.com/2017/11/difference-centralized-decentralized-distributed-processing/


7

rely on cryptocurrency ’s novel technology and self-induced scarcity for its value. Future
cryptocoin investors will look for tangible value and some recourse, lest they too become victim
of digital whim and caprice. The introduction of a location-based, asset-backed cryptocoin
application could provide some liquidity to the $11 trillion of trapped capital in today ’s US
residential real estate market (Goodman 2016, 12). It could also act as a more stable digital
repository and reserve virtual currency as traders move in and out of ancillary digital coins and
tokens.
1.5 Research Objectives
The aim of this study is to understand blockchain technology and examine its application
utilizing a GIS framework. The ultimate question to be answered is: can location be attached to a
blockchain? Thus, certain objectives have been outlined which shall guide the outcome of this
thesis:
1) Discover a standard for developing location-based blockchain property keys
2) Discover a method to access property keys from a searchable geodatabase
3) Develop a free and open-source, off-chain geodatabase
4) Develop a webGIS application to list asset-backed crypto coins
5) Develop webGIS application to sell asset-backed crypto coins (geocoin exchange)
6) Develop a ‘ ga mi fie d’ version of the geocoin exchange
In order to achieve these research objectives, an extensive literature review was conducted.
The budding field does not have any peer reviewed literature specifically related to GIS and the
blockchain. However, the latest private market techniques for pegging tangible assets to a
blockchain protocol are extensively considered, reviewed, and applied herein.
8
Chapter 2 Related Work
This related work section begins with the historical context of blockchain ’s seemingly
sudden emergence. It is seemingly sudden because hyper-media coverage of Bitcoin fails to
recognize that the underlying blockchain technology actually goes back to the early 1980s.
Yes, the 80s are back.
Following the history on how the blockchain came to fruition is a qualitative, in-depth
study of real world blockchain applications. By peeling the cryptocurrency onion from the
underlying ledger technology, unique blockchain applications can be observed that are currently
contending for marketplace acceptance.
Because blockchain applications are so new, and peer review journal articles so limited,
the related work examination relies on the most recent blockchain enterprise activity as source
material. The citations include white papers, periodicals, and public offering documents. The
section consists of three case studies. It is prefaced by reviewing Satoshi Nakamoto ’s Bitcoin
blockchain, since it was his pseudonymous landmark paper that kicked off the blockchain
revolution that is currently underway.
The prior methods examination begins with understanding the framework of a recent title
transfer experiment by Cook County Illinois (Chicago) that was 100% completed on blockchain
using Bitcoin ’s “Colored Coin ” Protocol.
Next, the methodology of Liquid Asset Token, an asset-backed Initial Coin Offering that is
employing an unconventional blockchain ecosystem, was dissected.
Finally, what could be the biggest asset-backed blockchain prospect to date, an asset
backed cryptocoin named Propy just announced that it is foregoing the Bitcoin blockchain

9

altogether. It will begin to automate real estate title transfers entirely through the Ethereum
blockchain protocol.  
2.1 What is a Blockchain Again?
A blockchain is a shared database where each node hosts a complete data set. Forbes
simplifies it here: “Blockchain technology eliminates the need for a third party intermediary by
creating a permanent, open record of all transactions on a network. As a result, a buyer and seller
interact directly, while their exchange is recorded on the blockchain ledger (Marr 2018).
2.2 Bitcoin Blockchain Background  
Bitcoin is a distributed digital currency based on open source software, not controlled by
any government or central bank, and runs on a Bitcoin blockchain protocol (Nakamoto 2008, 1).
Bitcoin has gained attention lately, mostly because of hype about its meteoric rise in its trading
price. Bitcoin is also gaining much notoriety with its recent ban in China and South Korea.
Currently, U.S. regulators (Commodities Futures & Trading Commission and the Securities &
Exchange Commission) have deemed virtual currencies as either commodities, securities, or both.
(CFTC and SEC 2017).
2.2.1 What is Bitcoin, really.
Bitcoin is not currency. It is not bank-less money. For sake of simplicity, think of Bitcoins
as no different than casino chips —but more akin to a commodity than actual legal tender. Bitcoins
actually get their worth, not from fiat currency-exchange value, but from socio-economic
perception and scarcity —similar to gold. Since the overall Bitcoin circulation grows at a
predetermined rate (there are currently about 16.6 million bitcoins as of this writing), its circulation
10
is expected to max out at 21 million coins in the year 2140 (Nakmoto 2008, 4). No one knows the
end game but many parallels have been made with the Dutch Tulip mania of the 1600s (Fox 2017).
Bitcoin ’s value is literally pegged to perception and has long lost any utility value as a usable
currency due to its ever slowing and costly clearing mechanism.
2.2.1.1 Bitcoin vs. Blockchain
In order to distinguish Bitcoin from its blockchain, it is necessary to review Satoshi
Nakamoto’s (true identity unknown) founding white paper titled: “ B it c oin: A Peer-to-Peer
Electronic Cash S y st e m,” which was published in 2008 and released as open source software in
2009. Coinciding with the global financial crisis, Nakamoto kicked off the cryptocurrency
revolution literally as an alternative to government controlled value exchange. In the ensuing
process, the digital currency application (Bitcoin) got blurred with its underlying platform
(blockchain). Nevertheless, blockchain adoption is still incubating. See Figure 3.
11
2.2.2 A Brief History of the Blockchain
The blockchain concept goes back to the convergence of digital cryptology and the desire
for anonymous electronic mail that actually began in the early 1980s. David Chaum of the
University of Berkeley, wrote a landmark paper in 1981 titled: “ Untra c e a ble Electronic Mail,
Return Addresses, and Digital P se udon y ms.” In it, Chaum pioneered a technique for email to be
transmitted securely using “ publi c-key c r y pto g r a ph y .” Public key cryptography is currently the
basis for "one-way hash func ti ons,” or, the digital signature of the Bitcoin Blockchain and other
cryptocurrencies (Lord 2015).
2.2.2.1 Secure Electronic Mail - Credentials without Identity
C ha um’s paper kicked off a “ c y phe rpunk move ment” , not “ c y be r” but “ c y phe r, ” as in
cryptography and punk (punk as a euphemism for anti-authoritarianism) (Bertelloni 2017, 3). The
movement was organized by a group of passionate technologists that “ hi g hli g hted the
transformative potential of technologies related to c r y pto g ra ph y ” (3). Julian Assange, Satoshi
Nakamoto (rumored to be Nick Szabo), and John “ C a ptain C runc h ” Draper were all associated
with the early cypherpunk movement (Flint 2018).
Given his landmark work in the field, Chaum could (or should) be crowned “ F a th e r of
B lockc h a in.” His crypto-mail recipe was based on what he called a “ roste r, ” or what is now
known as a “ dist ribute d ledger ” i.e., the blockchain:
A digital pseudonym is a public key used to verify
signatures made by the anonymous holder of the corres-
ponding private key. A roster, or list of pseudonyms, is
created by an authority that decides which applications
for pseudonyms to accept, but is unable to trace the
pseudonyms in the completed roster. The applications
may be sent to the authority anonymously, by untraceable
mail, for example, or they may be provided in some
other way.
Each application received by the authority contains
all the information required for the acceptance decision
12
and a special unaddressed digital letter (whose message
is the public key K, the a ppli c a nt’s proposed pseudonym).
In the case of a single mix, these letters are of the
form Ki(Rx, K). For a cascade of n mixes, they are of the
form Kn(R . . . . . . K2(R2, Ki(R~, K)) ...). The authority
will form an input batch containing only those unaddressed
letters from the applications it accepts. This input
batch will be supplied to a special cascade whose final
output batch will be publically [sic] available. Since each
entry in the final output batch of the cascade is a public
key K from an accepted applicant, the signed output of
the final mix is a roster of digital pseudonyms.
(Chaum 1981, 86).
Keep in mind that the spreadsheet did not come to the IBM PC until 1981, so C ha um’s roster
concept was quite novel. Chaum wanted “ c re de nt ials without identit y .” His goal was to enable
“ sustained individual action free from any control other than re putation” (Bertelloni 2017, 3). Long
before N a ka mot o’s Bitcoin paper in 2008, Chaum entertained the promise of a decentralized, peer-
to-peer network as the only way to foster individual independence and bank-less money (Chaum
1981, 2).
2.2.2.2 Secure Electronic Cash
In 1988, David Chaum, Amos Fiat, and Moni Naor authored a post-doctoral paper for the
Crypto '88 Conference in Santa Barbara titled “Untraceable Electronic Cash.” The group
expounded on C ha um’s encrypted email techniques and applied (at least in theory) those early
crypto innovations to electronic cash (Chaum 1990, 319-327).
Chaum understood early on that his roster —or what is now commonly known as a block
chain —was necessary to validate pseudonymous transactions without a trusted third party.
However, instead of using tod a y ’s clearing mechanism terms such as “ mi ning ” and “ tok e ns,”
Chaum was using terms such as “ c a sc a ding” and “m ix e s” (1990, 319-327).
13
Whatever terms used for the concept of a shared ledger, i.e., roster, network log, distributed
database, or distributed ledger technology ( “ D L T” ) , they all refer to what is now commonly known
as a blockchain. This digital framework could not have occurred without C ha um’s early 80s ’
concepts that relied on anonymity and decentralization as the basis for its architecture. The most
well-known and prolific application of blockchain is Bitcoin, which is explored in the next section.
2.2.3 How Bitcoin Works
Nakamoto’s theory of a decentralized e-cash system was premised on the idea that the
medium of digital value had to change hands without the need of a trusted third party such as banks
for other financial institutions. The value not only had to be incapable of being spent more than
once, but also had to prevent it from being diverted to the wrong account. In order to achieve this
independence, a new type of database application was necessary —one that was “ pure l y peer-to-
pe e r” and truly distributed (Nakamoto 2008).
In his open source software, Nakamoto devised a system whereby the payment history of
every Bitcoin in circulation was made publicly available as part of the “ D NA ” of each token. An
“ im mut a ble ledg e r” is to be distributed on thousands of computers or “ node s” as Nakamoto put it.
Each node together makes up its blockchain (id.).
2.2.2.1 Consensus Mechanism
What makes Bitcoin “trustworthy and secure ” is the mathematical and computational
requirements necessary to validate the ledger on each of the nodes that make up its blockchain. In
order to update the nodes, the ledger for each coin must sequentially reconcile with other the
ledgers on a majority of nodes. As the various nodes check when the ledger is inspected,
specialized nodes called “ mi ne rs” execute the validation, create new consensus blocks, and allow
14
for updates of the parties ’ Bitcoin wallets. Miners get paid in Bitcoin for their computational
contribution (Achheson 2018).
2.2.2.2 One-Way Cryptographic Hash Functions
A cryptographic hash function “ boil s down” the ledger transaction into a string of digits
and encodes it as a mathematical puzzle, of sorts. Remember Chaum ’s untraceable email? Only
those with a specific key can unlock the puzzle and add new transaction blocks. In an extensive
article on the inner workings of Bitcoin, the Economist explain ed how the cryptographic hash
secures the blockchain.
Miners who solve the requisite puzzle by validating the chain will get to create new blocks
and earn new Bitcoin. “ T he winning miner earns 25 bitcoin, worth about $7,500 [$147,500 as of
October 2017] ” (Iansiti 3, 2017). At the time of this writing, October 2017, Bitcoin was trading at
$5,978.42 [Bitcoin peaked shortly after to $19,783 on 17 December 2017]. Significantly, Ethereum
mining will soon be obsolete. Its Proof-of-Work (POW) model is being replaced with a Proof-of-
Stake model (Acheson 2018).
2.2.3 How Bitcoin Pertains to this Thesis
Bitcoin ’s inability to control off-chain assets within its blockchain is its main limitation as
a non-currency or as a utility application. Worse, non-differentiation of its coin value makes it
difficult to attach to unique asset. As detailed in the next section, asset-backed blockchain
applications using Bitcoin as a transportation layer, are setting themselves up for failure. The
current structure of the Bitcoin architecture does not allow for it to efficiently act as a data
repository. Rather, due to its distributed nature, the blockchain technology acts better as an index
or the “s pine” of a neural network but it still needs a “ bra in. ”
15
Managing off-chain digital assets via the cloud instead of using the “ C olore d C oin”
protocol of bitcoin ’s blockchain, could be the key to a more efficient blockchain transportation
layer.
2.3 Cook County Recorder of Deeds/Velox.RE - Case Study #1
The Cook County Recorder of Deeds (“ C C R D” ) in Chicago, Illinois successfully
performed an experiment to determine if it was possible to legally convey real property via
blockchain technology. The Blockchain Pilot Program Final Report was the culmination of over 6
month’s work by CCRD, the International Blockchain Real Estate Association, Hogan Lovells
Law Firm, Blockchain Consulting LLC, Goldberg Kohn Law, and Velox.RE.
CCRD was asking whether it was possible to deed and record a real property transaction
via blockchain technology. They were also determining whether it was legally and financially
feasible, or less-than-optimal, compared to the current “ loca ll y-isolated client server model ”
(Merkovic 2017, 1-3).
The purpose of the experiment was to create a “digital property abstract ” and show how
consolidating records held by multiple government offices across multiple layers of government
will result in a holistic and accurate picture of the financial health of a prop e rt y ” (7).
2.3.1 Velox.RE’s Blockchain Methodology
CCRD ’s first action was to aggregate real estate data into one location in order to
streamline “ pr e-conveyance due diligence, allowing the property title to transition from a sequence
of scattered events to an actual “ objec t” (the digital abstract) (8). A participant in the blockchain
pilot program, California-based startup Velox.RE, proposed a transaction workflow based on the
Bitcoin blockchain. They premised their solution on the ability of two private parties to digitally
16
convey real property using Bitcoin ’s “ C olore d Coins P rotoc ol” (“ C C P ” ). The CCP shares an
information layer with Bitcoin ’s blockchain that creates a separate digital token to represent off-
chain assets. The token is a small amount of metadata (only 40 bytes) and encoded on its
blockchain is the conveying language and digital signature of the real estate deed. In effect,
Velox.RE is using Bitcoin as a signature conduit or contract transmitting device. In other words,
their solution was to supplant the paper real estate deed with an e-file or merely the blockchain
equivalent of a PDF (Merkovic 2017, 3).
2.3.2 How Velox.RE pertains to this Thesis
Because the protocol creates a separate token that exists outside the Bitcoin itself,
Velox.RE’s solution is not unitary nor practical. It requires a third party protocol to direct off-
chain assets and go through Bitcoin ’s entire consensus mining sequence for validation. Moreover,
Velox.RE’s structure requires competing with an ever growing number of Bitcoin blocks. Because
it is more of a digital signature than a storage of value, Velox.RE’s Colored Coin Protocol is not
the most optimal solution for a long-term real estate backed blockchain.
The big takeaway is that a real estate blockchain structure should stand alone and only
contain the data necessary to validate notable transaction blocks. Real estate attributes and data-
intensive information should be stored “ off-chain" in a hyperlinked distributed database or bit-
torrent. Liquid Asset Token takes this approach in their asset-backed coin offering, as discussed
in more detail, below.
2.4 Liquid Asset Token - Case Study #2
Liquid Asset Token ( “ LA Toke n” or “ L A T” ) is a Russian-based, asset-backed blockchain
coin that ties its value to the price of tangible assets. It uses a protocol to provide owners the ability
17
to peg their contributing collateral asset value to a token and subsequently trade it on an exchange,
thereby providing liquidity to a rigid asset class (LAToken 2017). The token on-its-face appears
to be more a derivative or financial swap.
In October 2017, LAToken successfully completed an Initial Coin Offering ( “ I C O” )
raising approximately $20 million with a capitalized valuation of $300 million (2017). The
Russians of course purport to tokenize any tangible asset—from equity and debt to real estate and
works of art. Tokenizing an asset refers to the procedure of pinning rights of a tangible asset to a
digital token and onto a blockchain (Cameron-Huff 2017, 1). Once a token has been generated,
sellers can “ f ra c ti ona li z e ” their ownership and sell pieces of the token, much like a bond or a
security. In light of this new digital method, certain U.S. based regulators, including the Securities
and Exchange Commission ( “S EC”) and the Commodities Futures Trading Commission
(“ C F TC” ), are deeming many of these blockchain coins as either fiat currencies or securities —and
regulating them as such. For example, a similar asset backed coin offering by another Russian
firm, REcoin, was halted in October 2017 and its founder charged with securities fraud by the SEC
(SEC 2017).
Nevertheless, according to LAToken’s Initial Coin Offering, the firm was founded in 2013,
processed over 1,000 deals in 2016 with 35 different banks and investors, and is continuing to add
new asset classes.
2.4.1. LAToken ’s Blockchain Methodology
LAToken has developed a 5 part “ blockc ha in-powered ecosyste m” to tokenize assets. It uses:a
blockchain wallet as a method to construct tokens, as a coin exchange or marketplace and as a
trading terminal.

18

2.4.2 LAT Wallet
Wallets allow users to generate new blocks, check token account balances, create new
tokens and link them to assets. Coins are obviously not stored in the wallet else it would not be a
distributed database. But wallets do store public and private keys (secret numbers) for every
address that is saved in the wallet of the person who owns the coins.
2.4.3 LAT Token Constructor
New tokens are generated via the Asset Token Constructor. In order to issue new asset
tokens, the owner will first select the token type based on the type of asset. Secondly, the owner
will verify the asset’s eligibility criteria and proper legal structure. After properly vetting its legal
use, the Token Constructor sets up smart contracts and spells out due diligence of the underlying
asset and any specific rules. Finally, the agreement is executed with a “ L A T certified c ustod ian.”
2.4.4 LAT Marketplace
The LAT Marketplace allows owners to sell or buy asset tokens as well as manage their
personal portfolio, which can include other cryptocurrencies. On the exchange, the owner uploads
detailed asset information, ask and bid prices, settlement dates and other pertinent information.
Buyers can search for specific asset types, view detail asset information and historical
pricing information. Buyers can also view and manage their cryptocurrency portfolio.
2.4.5 LAT Trading Terminal
An online trading terminal allows buyers and sellers to make bid/ask offers, practice
trading scenarios, as well as process trades.

19

2.4.6 How LAToken pertains to this thesis
LAToken presents a compelling blockchain business model given the fact that their system
is fully functional and that 9000+ crypto holders contributed to their Initial Coin Offering.
However, the biggest limitation of LAToken is their consensus mechanism for validating nodes.
Blockchain mining as a consensus mechanism is trending its way out. A pre-mined, permissioned,
distributed ledger system offers theoretically better blockchain solution for real estate —than
legacy consensus mechanisms such as the ones used by Bitcoin, Ethereum, and Graphene.
2.4.7 LAT Blockchain Technology
According to its white paper, LAToken does not rely on the Bitcoin blockchain, a la
Velox.RE, or the “ smar t c ontra c t” of Ethereum (35). Instead, LAToken is basing its platform on
the “ ne x t-gen Graphene-based blockchains based on DPOS mechanism [that] solved the [Bitcoin]
problems with transaction spe e d…” (36). Graphene blockchain is a distributed ledger technology
comparable to the Bitcoin and Ethereum ecosystems (Long 1). DPOS is defined as Delegated
Proof-of-Stake, which is a consensus mechanism that is akin to “ mi nin g ” on the Bitcoin blockchain
except purportedly much faster (36). DPOS does not require a full majority of the nodes to arrive
at consensus, but only a proportional amount of nodes based on the percent ownership in the
network (2).
Steemit (Graphene) blockchain purports to “ stor e a large number of objects, including
assets, holders and file re fe re nc e s” (LAToken 2017, 37). However, L A Toke n’s white paper
contradicts itself in the very next sentence when it notes that “ L AT oke n will store encrypted data
via systems based on BitTorrent technology with highly advanced improvements: sharing (node
holder is not required to store the whole file, they can only store parts of it ) ” (37). In other words,
20
this disclosure evidences that its blockchain only stores references and holders to the assets in the
blockchain, not the data itself.
2.5 Propy Title Registry Blockchain - Case Study #3
Propy is the newest initial coin offering (“ I C O ” ) to hit the market. It bills itself as an online
“ prope rt y store with a decentralized title re g ist r y ” (Propy 1). Propy ’s white paper describes its
business model as allowing “ bu y e rs, sellers, brokers, and escrow/title agents to utilize smart
contracts to facilitate tr a nsa c ti ons” (1): Propy.com is dedicated to solving the problems of
purchasing property across borders. “Propy is the world ’s first international real-estate
marketplace. The team at Propy.com facilitates connections between international entities to
enable the seamless purchase of international real-estate online for the first ti me” (Propy 2017 1).
Propy is a Bulgarian-owned business based in the Ukraine. It was started by Natalia
Karayaneve and joins several other Russian oriented asset-backed coins that have attempted to
enter the U.S. marketplace in the last year.
Some of the features it advertises include a web based platform with an IOS app. It also
offers messenger support and in multiple languages including Chinese, Russian, and Arabic. Their
platform also includes a mode for data aggregation and standardization of property listings. The
cryptocurrency application promotes an “ off-market subsc riptio n,” walk-scores, school data, and
a reservation fee payment system.
Propy claims to use the following server technology: Its off chain database is running
MongoDB Database with Microsoft Azure. The platform is built on the Ethereum based
blockchain.
21
2.5.1 Propy ’s Registry Architecture
Propy ’s Ethereum blockchain stores “ inst a nc e s of various legal a g r e e ments, ” according to
its white paper. It also stores “signatures for all documents participating digital sig na ture s ” (Propy
2017). The descriptive data on the mechanics of its execution is lacking. However, the proprietor
included a data schema flow chart, which gives insight to the information being transmitted and
her general blockchain methodology. See Figure 4.
Figure 4. Propy Data Schema
22
Chapter 3 Methodology
The purpose of this project is to increase the efficiency and liquidity of real estate through
the development of blockchains using GIS. The people it will serve are property owners desirous
of converting home equity into digital coins, or cash. The application will also allow investors
interested in owning asset-backed cryptocurrency to browse and buy cryptocoin backed by real
estate. By organizing “smart contracts ” into a blockchain framework, real estate ownership can be
fractionalized (tokenized) and traded via the geo-cryptocoin exchange being developed here.
3.1 Blockchain Architecture
In order to embed location into a blockchain framework, an adaptation of the geodatabase
was developed to create a new kind of free and open sourced real estate information system. It
begins by linking geolocated real property assets to a universal indexing or referencing system.
This application generates Ethereum blockchains by converting public parcel information into
standardized strings, called “ P rope rt y Ke y s.” Keys, as noted, are the foundational blocks of a
blockchain. Property Keys are then “hash e d” or encrypted with its Private Key (Digital ID), which
ultimately generates a Provenance Token Address. This Ethereum protocol uses an online “ wa ll e t ”
to encode self-executing, digital smart contracts into its blockchain by authorizing users with
proper keys to securely conduct transactions.
Figure 5. Real Estate Blockchain Protocol
23
The Provenance Token address is available for others to see and is necessary to send and
receive digital funds related to that property. By creating, en mass, the location-based Property
Keys, property owners are able to generate an Ethereum blockchain for their property. The
applications being developed will therefore allow users to :
1. LOOKUP THEIR ESTIMATED PROPERTY AND TOKEN VALUE
2. CONVERT HOME EQUITY INTO ASSET-BACKED CRYPTOCURRENCY
3. LIST AND SELL THEIR ASSET-BACKED TOKENS IN A SEARCHABLE, SPATIAL
DATABASE WITH GAME-LIKE FUNCTIONALITY.
The result is the ability to convert public parcel information into real estate backed
cryptocurrency that is discoverable via an off-chain geodatabase and traded on a “gamified ”
geocoin exchange.
3.2 Application Design
Every state and county has their own real property conveyance system and their own
individual method for storing and indexing assessor parcel information. This ancient cadastre
system dates back to the Roman Empire so it is not well suited for commerce in toda y ’s fast-paced,
digital society. The blockchain provides an opportunity to develop a universal indexing system for
a national real estate ledger. But in order to develop this “ quil ted” blockchain, standards must be
created and adhered to.
3.2.1 Property Keys
The application being developed on top of this blockchain is proof-of-concept for a
decentralized, scalable real estate backed cryptocurrency application that allows property owners
to tokenize equity. It is premised on converting spatially-aware Property Keys into “ c r y ptographic
24
one-way hash functio ns” for each property address. The one-way hash function or Property Key
is the standardized link that enables third party applications to individually authenticate and
transact with property owners using the Ethereum blockchain. Think of it as a lockbock for real
properties where participants can use it to conduct any type of real estate transaction with the
proper key. In this project, an asset backed crypto currency application is being developed that
relies on hashing millions of Property Keys and providing a free platform for users to engage in
asset backed cryptocoin trading.
3.2.2 Hashing Property Keys
In order to create a standard Blockchain Property Key, the application must first combine
many GIS ingredients. For example, each county assessor tracks every parcel under its auspice
and are typically made available to the public in standard GIS formats. The primary concern here
is boiling down the ownership and parcel locational data into an editable, text-based format.
A national ledger of record for real estate transactions requires that the common index
format must be geospatially intelligent and functional. By loading the county ’s parcel data into
ArcMap 10.6 and editing its attribute table, owners ’ data file can be merged into the parcels ’
attribute files. This action requires preforming a spatial table join in order to get property
ownership data to combine with the parcel polygon information. After exporting the parcels ’
combined locational and ownership attribute data in dBase format (.dbf), which includes the
various fields that will make up its Property Key, the file is opened in IBM SPSS, converted to a
comma separate values format (.csv), and then the data is further scrubbed in Excel.
Using Excel ’s concatenate function, the Blockchain Property Key string is derived by
combining its Uniform Parcel Code (UPC), physical address, latitude and longitude of parcel
centroid, and geoJSON code, if any. See Figure 7. The entire dataset is available to anyone, which
25
makes data loss and total destruction nearly impossible. Its parcel shape, location, and transactional
history can be recreated at any time from any copy.
To better understand the entire project architecture, Figure 6 shows the component view of
the system. From the upper left, parcel and Census data is manipulated in ArcMap and stored on
the off-chain geodatabase (Facebook). Property owners use Facebook to find their Blockchain
Property Key and then use Esri’ s Survey123 to apply for cryptocurrency status. If accepted, their
coins get listed on the geocurrency exchange where buyers and investors can use Google Earth,
ArcGIS online, or their mobile phone to view offerings. Transactions are conducted on Ethereum.
Figure 6. Component View of the Blockchain Design
26
Property Owner (Cryptocoin Seller) Cryptocoin Buyer
1
Owner downloads app and browses equity map to see how
his neighborhood is valued
Buyer downloads app; or kmz; or goes to website to browse coins
on a map; or use AR virtually find coins
2
In survey123 app portal, Owners lookup up their a d d r e ss ’
estimated value and its potential token value
Buyer can view equity map in app to select areas with the strongest
median equity
3
Owners lookup public lien information on their property by
clicking link
Buyer browses maps and clicks on coins being offered for sale
4
Owner decides to convert a portion of her equity into
crypto currency in $5k increments (deeds or liens)
Buyer clicks on URL to go to p r o p e r ty ’s Facebook home page
5
Owner agrees to terms and submits application Buyer can review property information (liens, pics, plans, leases,
etc) to determine whether to invest
6
Upon approval, owner receives email with Ethereum Wallet
instructions
Buyer agrees to buy the token by depositing funds (Ether) to se l ler ’s
token contract address
7
Owner copies the Blockchain Property ID key from the
email and pastes into Ethereum wallet to create blockchain
token contract address
Buyer now owns the asset backed token and can hold till expiry
(when token is redeemed plus interest) or paid off when Owner sells
property, refinances, or transfers
8
Owner registers his Ethereum blockchain token address to
the coin exchange by pasting into email return field
Buyer can relist token on coin exchange
9
The Ethereum token address is added to the the geo coin
exchange database and offered to public
Buyer can sell to commodity pools
10
Listings contain links to its off chain database (Facebook
page) and made available to 3rd party apps
Buyer can sell directly to other buyers
Figure 7. Blockchain Property Key and Proof-of-Concept Application

27

Chapter 4 Results
A searchable map of asset-backed Tokens listed for sale is the result of the many geo-
processing functions developed herein. This inventory of real property that attach cryptocurrency
requires a “ c ro wdsour c e ” application to not only list the Tokens offered for sale, but also an
application to trade them, i.e. a gamified, geo-cryptocurrency exchange.  
4.1 Application Development  
The initial landing web page is a portal that hosts various online mapping applications and
URL links to download a mobile application. See Figure 14. The first of the critical webGIS
applications being developed here is a United States Residential Equity Map subdivided by census
tracts. A second critical webGIS application allows qualified owners to convert real estate equity
to cryptocurrency and apply to list it on a geo coin exchange. Property owners find their Property
Key on Facebook, and use it to create a Provenance Token in Ethereum. The capstone application
in development is the geo coin exchange that displays Provenance Token listings on an interactive,
augmented reality, mobile application.
4.1.1 US Equity Map
An interactive, locational intelligence map assists both sellers and investors of equity coins
to make better decision. See Figure 8. The census tract map ranks and color-classifies the median
residential equity for each census tract. The debt coverage ratio (DCR) is the median value of
property in the census tract divided by its median debt. In other words, the map describes which
census tracts have positive or negative median net home worth and to what degree.
The US Median Equity map was developed to discern where the propensity of real estate
equity can generally be found. By obtaining the U.S. Census Bureau’s TIGER shapefiles for each

28

tract in every county into ArcMap 10.6, a debt-to-equity map can be generated. In order to rank
and color code census tracts, the median Household Monthly Mortgage Payment (American
Community Survey 4Q 2016) was “ table- joi ne d ” along with demographic tabular data from
Maptitude. Ma pti tude’ s data set reports the median home value for each tract. In ArcMap, a new
field named Debt was entered into a field calculation which derives the median household
mortgageable-amount based on the Census ’ reported monthly-mortgage payment (pv (pmt*12,
int/12, fv). A new field is created with a field calculation that divides the median home value by
the median home debt. With over 1.5 million census tracts, this was no small endeavor. The
resulting ratio was used as the graduated value function in the Symbology tab in order to create
the following choropleth national median mortgage equity map. See Figure 8.  
The thematic, interactive map displays the relative median equity for every census tract in
the United States. The search bar allows any address to be entered and determine the general
financial health of the neighborhood. Any coverage ratio above 1 exhibits positive median home
Figure 8. The US Median Home Equity Map. https://arcg.is/18qO59
29
equity. Conversely, any ratio below 1 signifies that, overall, the census tract ’s median home value
is less than the tract ’s median mortgageable debt. This is valuable information when pricing or
determining whether to invest in asset-backed cryptocurrency that is location based.
Figure 9. ESRI “ S urv e y 1 23 C onne c t” Application to List Tokens
30
4.1.2 “ T ok e nize” Asset Equity
Assets can be broken into pieces or fractionalized. Once a property owner decides to
convert real estate equity into cryptocurrency, she will need an application to obtain her own
location-based blockchain Property Key and be able to list the token in a searchable geodatabase.
Using Facebook and Esri ’s Survey123, a web application was developed that allows property
owners to lookup their Blockchain Property Key, tokenize their home equity, and list their digital
coins on a geo-coin exchange. See Figure 9.
In setting out to develop user-created content, Esri ’s Survey123 Connect was employed. A
comma separated value (CSV) template was uploaded to the Survey123 website. A new survey is
created and able to receive information from online users via Geopoint “applets. ” Geopoints let
users designate a point on the map, which saves the latitude and longitude coordinates to their
uploaded record. Their pr ope rt y ’ s value field is entered by the user who can look up its ‘Z e sti mate ’
using the Zillow link. The user then enters his exact payoff or can look it up using the free title
report link. The seller agrees to the contract and uploads the information via the submit button at
the bottom of the page. The uploaded information is saved in Survey123 and administered in the
Analyze Data page of the Web GIS application. See Figure 14. The Owner is provided with their
Blockchain Property Key, which is accessible on the Off-Chain Database..
4.1.3 Off-Chain GeoDatabase
Facebook has emerged as a global unifying social link among people and businesses —for
better or worse. It can not only suppress voters but can also help elect illegitimate presidents. For
all its negatives, however, it still provides unparalleled access to the most targeted of eyeballs.
31
Fortunately, it also offers a free repository for unlimited data storage. Thus, Facebook is utilized
in this application as the Real Estate Blockchain’s off-chain database in order to store attribute
data (Property Keys, documents, photographs, plans, etc.) and ascertain the ability to target
millions of homeowners and investors.
However, Facebook does not allow uploading of data for multiple account generation. Its
Pages and Groups have to be created one-by-one. To work a way around this limitation, an
algorithmic script or “Bot
”
was developed that—one-by-one —creates an individual Facebook data
page for each property address and pastes the Blockchain Property into the description field.

After
Blockchain
Property ID
Key
Figure 10.  Off-Chain Database hosts its Blockchain Property ID and other attributes
Property
Address
Unique URL
32
the Bot creates a Facebook data page, and after it saves the Property Key into the Facebook data
page ’s description field, the script copies its unique Facebook URL and pastes it back into a CSV
file (see Figure 10).
F a c e book’ s Pages schema is based on a “ P a r e nt- C hil d” framework. Business pages are a
“ c hil d” of the account holder. Business pages can have “grand- c hil dre n ” , which are called Groups.
Using F a c e book’ s schema, a Business Page is created to hold real estate information related to its
address including acting as a repository for its Blockchain Property Key and the ability to sell
directly to potential buyers.  The master CSV file is geocoded and exported as a KML file. The
KML ’s “ pop-up snipp it ” now embeds its GPS coordinates, Blockchain Property Key, estimated
token value, and the URL link to its Facebook Page. The KML output file is easily convertible to
many geo data formats.
So, with this application, property owners are able to click on map, lookup their
Blockchain Property Key, know their estimated token value, and “ c laim” their Facebook ’s
property page as their own. They can make the address page public or private. They can “ dr e ss-
up” their property page as if it were their personal page in order to attract property token buyers.
See Figure 10.
4.1.4 Ethereum Digital Wallet
“Ethereum is a decentralized platform that runs smart contracts: application exactly as
programmed without any possibility of downtime, censorship, fraud or third-party interference ”
(Ethereum 2018). Once the property owner obtains their Property Key in Facebook, they are able
to copy and paste it into an Ethereum Wallet where it generates its Provenance Token address. The
Toke n’s contract address then becomes available to any accepted cryptocurrency exchanges,
including the geo-coin exchange being developed here. With each property being “ tokeniz e d” in

33

this way, each individual token is now URL-addressable on a blockchain framework via its off-
chain counterpart.
The Blockchain Property Key becomes a searchable string in Ethereum and also acts as
standardized, addressable bar code of sorts for new and varied blockchain applications like the
“tokenization ” of home equity being devised here. The creation of tradeable digital tokens that can
be used as a currency, can automatically be compatible with any wallet, other contracts or
exchanges that are also using the Ethereum standard. It is important to emphasize the distinction
between the Real Estate Blockchain being developed here, which is a running ledger of secure real
estate entries on the Ethereum protocol, and the cryptocurrency application that utilizes its
Blockchain Property ID Key to facilitate buyers’ and sellers ’ transactions.
Figure 11. Ethereum Digital Wallet

34

A viable real estate blockchain allows anyone to market their property directly and without
the need of third parties such as Airbnb, Zillow, Paddmapper or any other matchmakers. Without
intermediaries, this new decentralized application (“ DA pp”) has the potential to disrupt existing
real estate technology.
4.1.5 Geo Crypto Currency Exchange
Mapbox has introduced a developer ’s kit for Unity and Xcode, which allows virtual digital
3D objects to be fixed to geospatial locations and viewed through the user ’s mobile phone, in a
game-type user experience. Namico popularized this geocaching activity with their successful
Pokemon Go mobile game. As part of the application here, a virtual currency was created that is
tied to a geocoin exchange. The geocoin exchanged is designed to proffer a “ ga mi fie d” user
experience. In order to create the virtual market place where buyers and sellers can exchange
Figure 12. Gamified Coin Exchange app in Unity that was Xcoded from Survey123 data.

35

currency and get location based token information, the user generated .csv file was imported along
with its GPS coordinates as collected from Survey123. In Mapbox, the 3D representation of tokens
are imported into a worldview, Glowtime map. Building outlines were extruded. Token locational
data was imported to the Mapbox code and saved as a Unity formatted binary file. After modifying  
feature settings for output to the iPhone, the Unity File with the Mapbox data is opened in Apple
Xcode for final output to the iOS platform as a mobile app (Android is optional).
The token inventory can also be exported to online venues such as ArcGISonline, Google
Earth, and game platform, Unity. Users interact with the application by tapping or clicking on the
coins to view information and to access the link to its off-chain database and geo-coin exchange.  
The Analyze and Data screens in Esri’s Survey123 allow the administrator to collect and
download all the datapoints being submitted by sellers. See Figure 13. The Survey123 web app
can be opened here: https://survey123.arcgis.com/share/5b81c0b2efcf45d8924b06c4241719f3
Figure 13. Survey123 Connect “ D a shboa rd ”
36
Figure 15. Unity Geocoin Exchange File
Figure 14. WebGIS Cryptocurrency Application
https://allenbranch.wixsite.com/provenancetoken

37

Chapter 5 Conclusion
The aim of this project was to study blockchain technology and examine if it can reliably
and securely act as a new type of real estate transaction vessel. Since there are no theoretical papers
nor any active blockchain applications that currently employ GIS, the research question whether
smart contracts can be organized into spatially aware blockchains was not an easy one to answer.
But it can nevertheless be answered in the affirmative.
Few industries incorporate such a myriad of self-interested intermediaries that get in
between the provider and benefactor of services other than real estate. Buyer ’s agents, se ll e r’ s
agents, mortgage brokers, leasing agents, lawyers, title agents, appraisers, clerk recorders, are just
a few of the actors that get in between typical owners and users. The introduction of the blockchain
and smart contracts is a break through that could have profound effects on business. The
application of self-executing smart contracts —combined with geospatial intelligence —could
revolutionize the entire real estate information industry.
In this thesis, four real-world blockchain applications were analyzed. However, as
mentioned, none of these nor any known asset-backed crypto-entities to date have integrated
location-based functionality into a blockchain framework. Thus, a methodology for a national
ledger of record and an off-chain geodatabase had to be invented in order to facilitate real estate
transactions as premised herein. Using GIS to manipulate geospatial information into
cryptographic one-way hash functions is literally and figuratively key to developing the national
real estate ledger. This mission was accomplished with the discovery of a standardized Blockchain
Property Key, which acts as the genesis block of every new real estate blockchain.
A major hurdle to overcome when discussing the adoptability of blockchain technology is
user interface design, or up until today, the lack thereof. Using Facebook as a free host and as a
38
familiar interface to store the Blockchain Property Key, enables users to engage in this new
technology. Because so many are connected and because of its universal appeal, F a c e book’ s
unlimited data storage provides an ideal opportunity for it to act as a free, distributed geodatabase.
The automated script devised to populate Facebook Pages, although slow and cumbersome, could
theoretically displace many real estate service providers. Facebook as a geodatabase grants
participants the opportunity to dress their property page like their personal page (with pictures,
video, audio, event coordination, links, and instant messaging. By linking owners with their
property, this method provides direct peer-to-peer communication unlike any real estate media
vehicle to date.
The method to convert home equity into cryptocurrency relies on users being able to “ li st”
their property into the geocoin exchange. This objective was accomplished with Esri’ s Survey123
and utilizing its dashboard function to collect location based form data directly from users.
Once it became apparent that the blockchain could employ geo-functionality, a method was
needed and found to create a prototype geo coin exchange. More than a typical text-based web
page, the goal was set out to make the geocoin exchange spatially-aware, interactive, fun, and
engaging. It became apparent that searching for coins and identifying properties is well suited for
this type of use. Gamified mobile applications that are able to use augmented reality (AR) and
Pokemon Go style interfaces were successfully tested herein.
This proof-of-concept application provided an opportunity to develop a real estate
information system that was successfully pegged to a blockchain ecosystem. Not owned by the
government or any corporation —but by the collective —this blockchain framework has the
potential to produce unique and distributed applications that could conceivably disrupt centuries
of real estate procedure. Although this initial solution is not truly “ dist ribute d” in the hyper-
39
theoretical sense, a decentralized, scalable real estate blockchain, using GIS as an organizing
mechanism, was achieved using this framework.
5.1 Future Work
This section describes the possible recommendations that can be made in the future to
improve the application and its outcome.
5.1.1 Improvements in Facebook Compatibility
Facebook has an amazingly simple user interface which is strikingly similar to the
blockchain/ledger format. It scrolls inputted data in a sequential format but the blockchain does
not allow for editing or corrections. Nor does Facebook allow for mass data uploads, which means
each Facebook page has to be created by the automated script one-by-one. Quite a painful process.
To avoid this, it is recommended that a user agreement be engaged with Facebook directly in order
to allow multiple group pages to be formed at once.
5.1.2 Improvements in Data Security
Anyone with someone ’s password or encryption key can bypass any security measure
devised. Therefore, it is recommended that data security not be an afterthought but that security
redundancy be baked in from the beginning.
5.1.3 Improvements in Regulatory Mindfulness
The SEC and CFTC have made it clear that Initial Coin Offerings are more likely than not,
securities if not in a commodity pool. Moreover, both have recently ruled that exchanges who list
ICO offerings may be just as guilty for failure to register. Therefore it is recommended that proper
licensing or exemptions be obtained from these financial regulators.
40
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Asset Metadata
Creator Branch, Allen Thomas (author) 
Core Title A methodology for a real estate blockchain application utilizing geographic information systems (GIS) 
School College of Letters, Arts and Sciences 
Degree Master of Science 
Degree Program Geographic Information Science and Technology 
Publication Date 07/26/2019 
Defense Date 08/16/2018 
Publisher University of Southern California (original), University of Southern California. Libraries (digital) 
Tag digital exchange,gamified,Geographic Information Science,GIS, blockchain,OAI-PMH Harvest,spatial, cryptocurrency 
Format application/pdf (imt) 
Language English
Contributor Electronically uploaded by the author (provenance) 
Advisor Fleming, Col. Stephen Douglas (committee chair), Lee, Su Jin (committee member), Tao, Ran (committee member) 
Creator Email allen.branch@usc.edu,allenbranch@gmail.com 
Permanent Link (DOI) https://doi.org/10.25549/usctheses-c89-33879
Unique identifier UC11671495 
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Legacy Identifier etd-BranchAlle-6524.pdf 
Dmrecord 33879 
Document Type Thesis 
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Rights Branch, Allen Thomas 
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Source University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection) 
Access Conditions The author retains rights to his/her dissertation, thesis or other graduate work according to U.S. copyright law.  Electronic access is being provided by the USC Libraries in agreement with the a... 
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Repository Location USC Digital Library, University of Southern California, University Park Campus MC 2810, 3434 South Grand Avenue, 2nd Floor, Los Angeles, California 90089-2810, USA
Tags
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