Artifact- NFT for Real Property

Encode financing due diligence into "proof of funds" NFTs; and real property records/rights into property owner's "bundle of rights" NFTs

Team:

15+ combined years of software development, plutus pioneer, 5 years of real estate investing, brokerage and escrow experience

Real estate is an asset class that continues to prove itself as one of the most consequential investments and therefore agreements an individual will ever enter into in their lifetime.

Lending protocols are reliant on centralized, faith-based systems of due diligence when qualifying a buyer for a transaction. This can lead to inefficient outcomes when a buyer pulls out of a transaction after they have been qualified for a purchase due to unforeseen financial circumstances. The Seller is reliant on these same faith-based systems to rest assured their property sale is moving forward, compounded with the outdated, centralized methods used to store and verify their property records and ownership rights.

Artifact is a solution that gives Sellers in a real estate transaction a method of easily verifying their records and rights to a potential Buyer via a "bundle of rights" NFT while giving lending protocols a way to verify in real time that the Buyer's meets the minimum risk profile to purchase seller's property via "proof of funds" NFT.

With the ultimate goal of providing decentralized methods and real-time solutions to buyers and sellers of a real estate transaction, Artifact aims to be 'square 1' in the NFT real estate revolution. With adoption and interest accelerating with every market cycle, NFTs promise to disrupt the real estate industry, but before peer to peer, transparent and law compliant real estate transactions can take place using blockchain technology, a solution like Artifact must be developed to represent the transaction data and real property records/rights as an NFT.

use cases include:

• create efficiencies by verifying and updating buyer's qualifications to purchase property in real time.
• increase consumer/marketplace competency by encrypting fundamental property rights (variations of the legal definitions of "possession, control, exclusion, enjoyment, and disposition"
• increase consumer/marketplace fidelity by encrypting the documents that connect the property owner to the property itself: deed, liens, chain of title, mortgage records, etc. 
•   create transparency and increase identity by offering a decentralized method of publicly recording and verifying property owner's records/rights to reduce marketplace fraud
•   create efficiency for the future purpose of offering decentralized marketplace functions powered by NFTs for buying/selling/exchanging real property using smart contracts offering consumers more control over their property

Who We Are:

Blake McNeal- Real Estate Industry Stakeholder, Project Guide

Vincent Brandon - Blockchain, Technical Development Advisor

Mark Moore- Plutus Pioneer, Workflow Consultant

How Artifact NFTs operate:

Phase 1: Buyer Side) Aligns seamlessly with traditional lending as well as DeFi lending protocols to mint "proof of funds" Artifact NFTs for Buyers in a real estate transaction. This product will increase transaction efficiency and transparency by using blockchain technology to verify and update financial due diligence in real time all without breaching personal privacy of the buyer. The Token won't need to harbor personal data to update and verify that the buyer meets the lender's minimum risk profile in real time because the "proof of funds" NFT will only broadcast the signal of the state of the relationship between buyer and lender.

"proof of funds" Artifact NFT process:

• buyer identifies property to buy
• buyer works with lender to submit documents defining lender's due diligence (i.e. proof of buyer's income, proof of buyer's assets, proof of buyer's credit history, proof of buyer's identity)
• lender encrypts buyer data using Artifact and issues buyer "proof of funds" Artifact NFT that serves as a real time "green light" indicating a qualified state, helping qualified buyers compete in hyper competitive markets and helping sellers verify the most assured offers for their property.
• buyer enters into contract with seller contingent on buyer's NFT remaining in qualification state
• Transaction closes

Phase 1 (Buyer Side) Tech Development Goals:

milestone 1- Develop lender client facing application where "proof of funds" Artifact NFTs are minted

milestone 2- Develop smart contract capabilities that transparently verify status of buyer's financial ability to close deal

milestone 3- Develop public and private keys for updating lender due diligence records.

milestone 4- Audit security of smart contract and fluidity of data streams.

milestone 5- Commercially launch lender client facing application

Phase 1 (Buyer Side) Operational Goals:

milestone 1- Voters elect to successfully fund Artifact from catalyst fund 6

milestone 2- Sign deal with commercial and residential mortgage lenders

milestone 3- Verify funds for 10,000 transactions by end of Q1 after launch

milestone 4- Raise subsequent funds for further product development and marketing

milestone 5- Verify funds for 100,000 transactions by end of Q1 after launch

milestone 6- Sign deal with commercial and residential mortgage lenders in every state of U.S. 

++Phase 2: Seller Side)++Aligns seamlessly with real estate escrow companies on the acquisition/disposition, origination, refinancing and entitlement of real property to encourage adoption by allowing the buyers and sellers to elect to encrypt, and therefore, represent their property records and rights onto the Cardano blockchain with "bundle of rights" Artifact NFT. This NFT will map the ownership structure in the real world onto the blockchain that will not only securely prove the property owner's entitlements but also give them a financial instrument that can be securitized, traded, tokenized or simply held to enhance appreciation of their asset while increasing resale value. Property owners can elect to mint their property's NFT at acquisition of property through title company client portal, or elect to mint at any time during ownership via title company client portal.

How are "bundle of rights" Artifact NFTs represented in the county clerk or public records office?

It is increasingly well known how NFT's are technically represented on the blockchain, but it's very obscure how they might technically be represented in legacy governance/market systems.

We are designing the "bridge" between the world of smart contracts/ledgers and the world of papers/files using consensual liens.

Upon electing/consenting to mint an NFT for your real property, the NFT would be represented as a "consensual lien." 

On the blockchain, the "bundle of rights" Artifact NFT represents all legal abstractions of the unit of real property that connects the chain of title, financing records, ownership rights and current deed with the current ownership structure of that property.

In the local county clerk's office where property records are stored and verified, a consensual lien agreement will represent the NFT, meaning that the property cannot be sold or transferred to any other owner without the consensus of the lienholder(s) and/or the satisfaction of the terms of the lien (This right is fully realized when the property is unencumbered)

Phase 2 (Seller Side) Tech Development Goals:

milestone 1- Develop escrow client facing application where "bundle of rights" Artifact NFTs are minted

milestone 2- integrate "bundle of rights" Artifact NFTs into a consumer facing wallet solution where "bundle of rights" Artifact NFTs will be stored

milestone 3- Build out user interface and polish front end development

milestone 4- Test backend development and audit security of consumer facing NFT custody system

milestone 5- Commercially launch escrow client facing application and consumer facing wallet integration

Phase 2 (Seller Side) Operational Goals:

milestone 1- Voters elect to successfully fund Artifact from catalyst fund 6

milestone 2- Sign deal with our title company client that provides Artifact NFT minting to title offices in 21 states

milestone 3- Mint 3,000 Artifact NFTs by end of first quarter from launch

milestone 4- Raise subsequent funds for further product development and marketing

milestone 5- Mint 10,000+ Artifact NFTs by end of second quarter from launch

milestone 6- Sign deals with more title company clients that provide Artifact NFT minting to title offices in all 50 states

*Relationship is in place with large nationally certified title company who is ready to become our first client for phase 2.

Three Month Goalpost:

Complete research, publish White Paper with code used to define NFT minting process and smart contract utilities for Phase 1 (Buyer Side)

Six Month Goalpost:

Launch Phase 1 (Buyer Side)

One Year Goalpost:

Reach Milestone 6 of Phase 1 (Buyer Side) and launch Phase 2 (Seller Side)

Allocation of Funds:

Blockchain, Technical Development Advisor-$60/hr (5 hrs a week, one hour each weekday, $300/week, $3600 total) 

Plutus Pioneer, Workflow Consultant- $60/hr (5hrs a week, one hour each weekday, $300/week, $3600 total)

Blockchain Developer- $33.33/hr 25hrs a week, $3,333/month for 2 months

Fullstack Developer- $20.85/hr, 20hrs a week, $1,666/month for 2 months

Marketing/Float- $2,800 (advertising to meet with traditional lending as well as DeFi lending companies to gain business relationship)

Conclusion: When the methods of verifying Buyer qualifications and representing Lender due diligence are decentralized and rolled-up via NFT coupled with decentralized methods that verify Seller property records and rights are rolled up via NFT, a real estate marketplace powered by NFTs can function and be exposed to the innate creativity and value inherent in healthy market ecosystems like Cardano.

Launch Phase 1: January 1, 2022