Unit 8: Real Estate Token Valuation
Expert-defined terms from the Advanced Certificate in Real Estate Tokenization course at LearnUNI. Free to read, free to share, paired with a globally recognised certification pathway.
Advanced Certificate in Real Estate Tokenization #
a professional certification program focused on the technical, legal, and financial aspects of real estate tokenization.
Appraisal #
a valuation process to estimate the market value of a property, usually performed by a licensed appraiser.
Asset #
backed Token (ABT): a digital token representing ownership of a real-world asset, such as real estate.
Blockchain #
a decentralized, distributed digital ledger that records transactions across multiple computers, ensuring data security and transparency.
Capitalization Rate (Cap Rate) #
a ratio used to evaluate the investment potential of a real estate property, calculated by dividing the net operating income by the property's market value or purchase price.
Cryptoasset #
a digital asset that uses cryptography for security and operates on blockchain technology, including cryptocurrencies and security tokens.
Cryptocurrency #
a digital or virtual form of currency that uses cryptography for security, operating independently from a central bank.
Decentralized Finance (DeFi) #
a blockchain-based form of finance that does not rely on central financial intermediaries, such as banks or exchanges.
Digital Security #
a digital representation of a traditional security, such as stocks, bonds, or real estate, stored and traded on a blockchain.
Due Diligence #
an investigation or audit of a potential investment to ensure its legitimacy and evaluate associated risks.
Fiat Currency #
a government-issued currency, not backed by a physical commodity, but by the government's full faith and credit.
Fungible Tokens #
tokens that are interchangeable and can be replaced by another identical token, like cryptocurrencies.
GitHub #
a web-based platform for version control and collaboration that allows developers to manage and store code for software development projects.
ICO (Initial Coin Offering) #
a fundraising method in which a company sells its own cryptocurrency to investors, usually in the form of a token sale.
KYC (Know Your Customer) #
a process that financial institutions and other regulated entities use to verify the identity of their customers, usually as part of an anti-money laundering regulation.
Liquidity #
the ability to quickly buy or sell an asset without significantly affecting its market price.
Non #
Fungible Tokens (NFTs): tokens that are unique and cannot be replaced by another identical token, often used for digital art, collectibles, and real estate.
Real Estate Investment Trust (REIT) #
a company that owns, operates, or finances income-generating real estate properties and allows individual investors to invest in large-scale real estate projects.
Real Estate Tokenization #
the process of converting real estate assets into digital tokens, allowing for fractional ownership, increased liquidity, and efficient trading on blockchain platforms.
Regulation D #
a set of SEC rules that allow private companies to raise capital through the sale of securities, exempt from registration requirements.
Regulation S #
a set of SEC rules that allow foreign companies to raise capital from U.S. investors through the sale of securities, without registering the securities with the SEC.
Regulation A+ #
a set of SEC rules that allow smaller companies to raise capital from both accredited and non-accredited investors, through a mini-IPO process.
Security Token #
a digital token representing an ownership interest in a traditional security, subject to securities regulations.
Security Token Offering (STO) #
a fundraising method in which a company sells security tokens to investors.
Smart Contract #
a self-executing contract with the terms of the agreement directly written into code, stored and replicated on the blockchain.
Solidity #
a programming language used for writing smart contracts on the Ethereum blockchain.
Tokenization #
the process of converting rights to an asset into a digital token on a blockchain.
Transfer Agent #
a third-party entity responsible for maintaining records of a company's shareholders, facilitating the transfer of shares, and handling other related administrative tasks.
Utility Token #
a digital token that provides access to a product or service, rather than representing an ownership interest in a company or asset.
Virtual Real Estate #
digital real estate that exists within a virtual world or metaverse, often represented as Non-Fungible Tokens (NFTs).
Whitepaper #
a detailed document that outlines a project's goals, features, and technical specifications, often used in the context of ICOs, STOs, or other blockchain-based projects.
Yield Farming #
the process of lending or staking cryptocurrencies or tokens to earn rewards or interest, often involving DeFi platforms.
Zillow #
a popular online real estate marketplace that provides information about homes for sale and rent, as well as home valuations and other real estate-related tools and services.