Real Estate Asset NFT Tokenization and FT Asset Portfolio Management


KIPS Transactions on Software and Data Engineering, Vol. 12, No. 9, pp. 419-430, Sep. 2023
https://doi.org/10.3745/KTSDE.2023.12.9.419,   PDF Download:
Keywords: Non-Fungible Token, Fungible Token, BL Model
Abstract

Currently, NFTs have no dominant application except for the proof of ownership for digital content, and it also have small liquidity problem, which makes their price difficult to predict. Real estate usually has very high barriers to investment due to its high pricing. Real estate can be converted into NFTs and also divided into small value fungible tokens (FTs), and it can increase the the volume of the investor community due to more liquidity and better accessibility. In this document, we implement and design a system that allows ordinary users can invest on high priced real estate utilizing Black Litterman (BL) model-based Portfolio investment interface. To this end, we target a set of real estates pegged as collateral and issue NFT for the collateral using blockchain. We use oracle to get the current real estate information and to monitor varying real estate prices. After tokenizing real estate into NFTs, we divide the NFTs into easily accessible price FTs, thereby, we can lower prices and provide large liquidity with price volatility limited. In addition, we also implemented BL based asset portfolio interface for effective portfolio composition for investing in multiple of real estates with small investments. Using BL model, investors can fix the asset portfolio. We implemented the whole system using Solidity smart contracts on Flask web framework with public data portals as oracle interfaces.


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Cite this article
[IEEE Style]
Y. Kim and S. Kim, "Real Estate Asset NFT Tokenization and FT Asset Portfolio Management," KIPS Transactions on Software and Data Engineering, vol. 12, no. 9, pp. 419-430, 2023. DOI: https://doi.org/10.3745/KTSDE.2023.12.9.419.

[ACM Style]
Young-Gun Kim and Seong-Whan Kim. 2023. Real Estate Asset NFT Tokenization and FT Asset Portfolio Management. KIPS Transactions on Software and Data Engineering, 12, 9, (2023), 419-430. DOI: https://doi.org/10.3745/KTSDE.2023.12.9.419.