Could blockchain technology assist first home buyers in New Zealand? – Part 2 – The Proof, The Blockchain & The Whitepaper.

The following post is a simplified version of our research whitepaper – “First Home – New Zealand First Home Buyer Support & Investment Blockchain” (which is downloadable at the end of this blog post).

Blockchain Selection

The initial issue with creating a blockchain for this task was selection. There are various options for choosing a relevant blockchain technology. Developers could create one from scratch with custom hash algorithms, but there are easier pre-built options available. With the rise of cryptocurrency and blockchain platforms like Ethereum, Cardano, Polkodot and Polygon, developers now have various choices to develop a blockchain solution. After some research we soon realized that Ethereum was the safest option.

Ethereum trumped other blockchain solutions due to its established reputation, documentation for learning and local technology suites for home development.

Ethereum wins because of its established developer documentation, custom programming language and easy to use local environment software like Ganache. With any blockchain project, a team or org could start out with Ethereum for prototyping or P.O.C purposes, it’s a safe option. After an initial prototype is established a development team could move onto another competitor or custom blockchain solution as the concept gains funding and momentum.

how to launch GANACHE etheruim client like below image? - Stack Overflow
Ganache & Ethereum allow you to build a blockchain and cryptocurrency easily on your home computer.


When you move through the world of blockchain technology you eventually find the concept of hash encryption. Hashing essentially means:

Hash encryption can be used to create entirely new custom blockchain technology and also assist in customizing a blockchain design. Hashing is a core concept within blockchain technology. In essence, it relates to encryption, which has interesting etymology:

On-Chain / Off-Chain Protocol

Ethereum uses a concept called gas. This refers to the price to execute a transaction/contract on-chain (on the blockchain). Excessive gas fees can make an Ethereum blockchain inefficient and expensive. This inefficiency can be nullified through creative blockchain design. Through our research we discovered that blockchains can be designed with off-chain protocol.

This means that non-blockchain storage protocols can be used in conjunction with a blockchain concept to create new real-world designs for applications and software. For an incredible free resource on blockchain design which covers off-chain protocol read NIST’s Blockchain Networks Token Design and Management Overview. This is a deep dive open source document that was fundamental to our research and design for the First Home whitepaper.

When thinking of on-chain/off-chain protocols, think of roads that can link together to direct or store traffic.

Silos & Off-Chain Protocol

An off-chain design allows for backup and efficient transaction process for an Ethereum blockchain concept. With First Home, we decided to create 5 silos for a process of (i) signing up, (ii) verifying, (iii & iv)funding and (v)documenting/governing a first home buyer blockchain support mechanism. The picture below is taken from the First Home white paper and illustrates the on-chain/off-chain concept and how it could be used to support first home buyers.


A hidden and unique aspect of blockchain design is tokenomics. This is the process of designing an investment token for a blockchain concept. Tokenomics has existed as a concept for many years but has a limited resource base for new entrants to the blockchain space.

In essence, tokenomics relates to how you will design the funding/investment mechanism that backs your blockchain. The subject is so understated that we only found 2 books with relevant depth and information to inform our First Home concept. Here is an excerpt from the whitepaper that describes a possible tokenomic design for the First Home platform:

Tokenomics is the understated yet crucial element to effective blockchain and cryptocurrency design.

The whitepaper lays out an ICO of 1 million coins or tokens. Tokens would be allocated to private investors and initial partners then a public offering of 43% or 430 000 tokens would be made for open investment. The First Home blockchain could be deflationary, meaning a sell off for First Home Buyer funding would occur at random times and a decreased amount of tokens would be re-offered to the public for investment. This deflationary principle has the intention of reducing supply and increasing the value to the First Home token.


With off-chain storage and various other facets required for the First Home blockchain (legal documents, accounting, development, support and representation) The blockchain would initially need to employ a team of representatives and administrators. This does not purely adhere to the plug and play autonomous nature of many blockchains, but for the time and funding restrictions of this project, along with its unique problem, a governance structure would be necessary for its establishment. This is how we looked to incorporate a human face to the First Home protocol/blockchain:

The First Home Blockchain could initially incorporate an oversight structure to facilitate the growth of the blockchain protocol. All governance records would be constantly updated to the 5th documentation, off-chain to on-chain silo.


The process of creating a blockchain solution for the First Home buyer issue revealed the following:

  • Ethereum has taken a clear lead in ready to use Blockchain developer technology. Ethereum have invested in significant documentation, platforms for development and even created its own language: Solidity.
  • Off-chain protocol is a significant burgeoning concept that will continue to fuel decentralized ideas/applications.
  • Tokenomics is the hidden subject that could become the central focus of future social constructs and learning curriculum.
  • There are real world examples and investment in various non-cryptocurrency protocols. These decentralized technology platforms can assist with blockchain to produce positive social outcomes. We discovered these in researching off-chain decentralized storage platforms.
  • This research concept could work, it would need to evolve and would ideally be pure in the blockchain sense (un-governed).
  • More research would be needed for tokenomics and legalities.


To see further detail into our concept for the First Home – New Zealand First Home Buyer Support & Investment Blockchain, please read our draft public whitepaper:


Many thanks to my research partner and friend Jason Climo for assisting in this project. Jason provided expert support and input in all of the topics listed above and in the whitepaper.

Jason also took the lead in prototyping and developing all of the concepts listed for the First Home Buyer Support & Investment Blockchain. This concept has been fully tested from a software perspective.

Thanks Jason, and this one’s for you: