Real Estate Tokenisation via Non Fungible Tokens
Will Serrano
Abstract
This paper presents a crypto Non Fungible Token (NFT) for real estate information. Current issues with real estate are the lack of asset information availability, and once data is retrieved, its veracity. Moreover, data can be out of data or artificially manipulated for an economic benefit. An example could be the fire alarm inspection logs. On the other hand, the main benefits of tokenisation are 1) decentralisation from a single source of authority, 2) encryption of data that avoids tampering, and 3) digital proof of ownership. The NFT registers real estate static and dynamic information to be traded in the data marketplace between the different users and stakeholders such as investors, occupiers, insurers and property managers. The information registered in the NFT contains real estate deeds, transactions and relevant parameters that change over time. The infrastructure of the proposed real estate NFT consists of a private token in a private blockchain entirely developed for this application rather than ERC-1155 or ERC-721; therefore, a new crypto token is created. Furthermore, the consensus protocol is a mixture between the proof of work and proof of stake mechanisms by choosing random validators with staked Cryptocurrency already, such as Ethereum. Experimental results show that the increment of the NFT at every transaction does not produce an equal increment of mining time or mining nonce, making the NFT predictable for higher complex models.