Smart Contract (SC) that Tokenizes Real Estate on the Blockchain.

 

This article develops an example of real estate tokenization that turns houses into a commodity and redistributes income. The appropriate smart contract is a standard ERC20, which generates shares of a real estate portfolio and distributes dividends to stakeholders.

The company acquires real estate and then sells it as fractional shares (each share is a token) on an exchange or cryptocurrency exchange. The stocks change price with: The price increases of the houses that are the underlying assets of the token.

  • Rents or rentals are distributed as dividends, after subtracting an amount for administrative expenses.

Below we identify the most relevant elements of a Smart Contract (SC) that tokenizes a Real Estate.

From line 8 to 18:

  • ·The name of the RealEstateToken contract, line 8.

  • Stakeholders: is the account or address type variable that identifies each investor, line 10.

  • Revenues: are the profits that correspond to each stakeholder or investor, line 11.

  • Accumulated: It is the sum of the initial investment plus earnings, line 12.

  • On line 14 the constructor (), contains:

The _mint () function that allows to create or mint the number of SC tokens (_supply) and that are assigned to the SC owner or company manager (_owner).

From line 30 to 38, we have the mathematical function transfer (), it allows:

  • Send funds to the account of each investor Stakeholders.

  • Requires that the recipient of the funds _recipient be a Stakeholders investor.

  • The owner of the Smart Contract msg. sender authorizes transferring the amount of token _amount.

From line 50 to 69:

  • The addStakeholder () function allows adding investors or stakeholders to the SC blockchain, this action can only be performed by the SC manager or owner (onlyOwner).

  • The removeStakeholder () function allows to remove investors from the SC blockchain, this action can only be performed by the SC manager or owner (onlyOwner).

From line 80 to 92:

  • The function distribute (), allows to allocate the benefits or profits (Revenue) to the accounts of the interested parties, this action can only be performed by the responsible or owner of the SC (onlyOwner).

From line 94 to 101:

·         The withdraw () function allows you to withdraw profits.

Finally, all these functions are executed by the Smart Contract (SC) automatically once:

  • The SC is implemented in the corresponding blockchain (Ethereum or other compatible).

  • The owner or person authorized by him calls to execute the functions.

 
 
Carlos Sampson