The Four Pillars

The Fabrica architecture is built on four interconnected pillars that work together to ensure security, compliance, and utility for property tokens.

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1. Legal Foundation

Every Fabrica property token is backed by a robust legal structure. When a property is tokenized, title is transferred into a Legal Wrapper—typically a Fabrica Trust that establishes the binding connection between the blockchain token and the real-world property. This legal framework is essential: it ensures that owning the NFT grants enforceable rights to the underlying real estate, subject to applicable law.

The Operating Agreement, stored permanently on IPFS, defines the governance rules for the property:

• Rights and obligations of token holders
• Transfer restrictions
• Procedures for resolving disputes

Because this agreement is referenced directly by the smart contract, it creates an immutable link between the digital asset and its legal foundation.

County records (and land registries) continue to play an important role. The Legal Wrapper remains the owner of record in local jurisdictions, providing a bridge between onchain ownership and the legacy systems that underpin property rights in most jurisdictions.

See Legal Framework for more details.

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2. Blockchain Layer

At its core, Fabrica uses ERC-1155 smart contracts deployed on Ethereum. ERC-1155 was chosen for its flexibility—it supports both single-ownership properties and fractional ownership scenarios where multiple tokens represent shares in a single property.

While the smart contracts support fractionalization, the full feature including governance mechanisms is still under development.

Token Data Structure

Each property token contains references to three key pieces of data stored on IPFS:

Supporting Infrastructure

Validator Registry: A smart contract that maintains a list of approved validators and allows tokens to reference validators by name rather than just blockchain addresses. This creates a more user-friendly system and enables validator reputation to be built over time.

Subgraph: Monitors blockchain events and makes property data easily queryable via GraphQL. This enables applications to efficiently retrieve token ownership, transfer history, marketplace activity, and lending positions without scanning the entire blockchain.

See Property Token and Smart Contracts for technical details.

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3. Validation Services

Validators are trusted third parties that inspect NFTs and verify property claims. They make properties interoperable across the ecosystem by providing standardized verification.

Key Functions

Title Verification: Validators verify how well a token represents real property by checking proof of ownership against public records and title company documentation. Anyone can mint a token, but validator verification provides the trust signal that buyers and lenders rely on.

Confidence Scoring: Each property receives a continuously updated confidence score based on multiple factors:

• Consistency between onchain data and public records
• KYC/AML status of owners
• Formation documents
• Other risk indicators

Validation occurs at key moments—during issuance, on transactions, periodically, and when triggered by external events. This score helps buyers and lenders make informed decisions.

Price Estimation: Validators aggregate data from multiple sources to provide current property valuations. This is particularly valuable for lending protocols that need accurate collateral assessments.

Media and Metadata: Validators generate and serve dynamic images, maps, and metadata that represent properties on marketplaces and in wallets. When you view a Fabrica property on OpenSea, the image you see is generated by the validator using current satellite imagery, parcel boundaries, and property details.

Multiple Validators

Fabrica operates the primary validator for U.S. properties, but the protocol is designed to support multiple validators per jurisdiction. Multiple validators can operate in the same region using different validation strategies and service levels—this allows for:

• Competition and market pricing
• Independent opinions on the same NFT
• A choice of guarantees for users

See Validators for complete documentation.

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4. Ecosystem Integrations

Because Fabrica tokens conform to open standards, they're immediately compatible with the broader Web3 ecosystem. This is where the real power of tokenization becomes apparent.

DeFi Lending

Property tokens can be used as collateral on protocols like NFTfi (peer-to-peer lending) and MetaStreet (pool-based lending). This unlocks liquidity for landowners who would otherwise need to sell or take out traditional mortgages—often difficult for unimproved land.

A property owner can:

1. List their token as collateral
2. Receive loan offers from individual lenders or liquidity pools
3. Access capital within minutes rather than weeks

NFT Marketplaces

Properties can be listed and traded on OpenSea and other compatible marketplaces. However, the Fabrica marketplace at fabrica.land is optimized for real estate transactions, offering:

• Compliance checks
• Validation integration
• Property-specific features

Web3 Wallets

Property tokens live in standard Ethereum wallets like MetaMask or Coinbase Wallet. Owners can view their properties, track values, and initiate transfers directly from their wallet interface.

See DeFi & Integrations for more details.

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Open Protocol Philosophy

Fabrica is designed as an open protocol:

• Smart contracts implement standard interfaces (ERC-1155, ERC-7496, ERC-7572)
• The legal framework uses publicly available trust structures (The Fabrica Trust is open sourced)
• Property data is stored on decentralized infrastructure (IPFS)

This openness enables developers to build new applications on top of Fabrica—alternative marketplaces, specialized lending products, property management tools, or entirely new use cases. The protocol doesn't lock users into a single interface or service provider.

For investors and builders interested in the future of real estate, this architecture represents a foundation for innovation. By combining the security of blockchain, the enforceability of traditional law, and the composability of DeFi, Fabrica creates new possibilities for how property is owned, traded, and financed.