Key Concepts

Fabrica connects real property to blockchain infrastructure through a carefully designed system. Understanding these core concepts helps you see how onchain ownership actually works.

Property Tokens

Each property is represented as a Property Token—an ERC-1155 NFT that serves as the authoritative record of ownership.

What the token represents:

• Full ownership rights to the underlying property
• The ability to transfer, sell, or use as collateral
• Access to property metadata, documents, and validation status

What makes it work:

• Standard NFT interface means compatibility with wallets, marketplaces, and DeFi protocols
• Onchain metadata provides transparency about property details and status
• Token possession equals property control—no separate paperwork required

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Legal Wrappers

Property tokens need a bridge to the traditional legal system. Legal Wrappers provide this connection.

In the United States, Fabrica uses a purpose-built trust structure:

• The Fabrica Trust holds legal title to the property at the county level
• The property token represents beneficial ownership of that trust interest
• Token transfers automatically transfer the beneficial interest—no deed required

This structure was developed through years of legal research to ensure:

• Property rights are protected under existing law
• Transfers are recognized by courts and title companies
• Owners maintain full control without company intermediation

The legal wrapper is the innovation that makes onchain real estate possible. It's not a workaround—it's a carefully constructed interface between two systems.

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Validators

Validators are the trusted parties that issue and maintain property tokens. They perform the critical functions that keep the system reliable:

At on-ramp:

• Verify the property owner's identity and authority
• Confirm clear title through title search
• Prepare and record legal documents
• Issue the property token

Ongoing:

• Monitor property status (taxes, liens, encumbrances)
• Maintain the confidence score that reflects property health
• Forward mail and official correspondence
• Update metadata when property details change

Validators are licensed, bonded, and accountable. In the US, Fabrica's validator holds 23 regulatory licenses covering all 50 states and 3,144 counties—the result of years normalizing jurisdiction-specific rules into a single coherent system.

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How They Work Together

The three components form a complete system:

┌─────────────────┐     ┌─────────────────┐     ┌─────────────────┐
│  Property Token │────▶│  Legal Wrapper  │────▶│  Real Property  │
│    (Onchain)    │     │  (Fabrica Trust)│     │   (Physical)    │
└─────────────────┘     └─────────────────┘     └─────────────────┘
         │                                               │
         │              ┌─────────────────┐              │
         └─────────────▶│    Validator    │◀─────────────┘
                        │  (Verification) │
                        └─────────────────┘

• Token provides programmable ownership and DeFi integration
• Legal wrapper ensures transfers are legally valid
• Validator maintains the link and keeps the system trustworthy

When you transfer a property token, you're not just moving a digital asset—you're executing a legally binding transfer of real property rights.

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Core Principles

These concepts reflect Fabrica's design philosophy:

Non-Custodial Ownership You hold your property token. No company, including Fabrica, can move, freeze, or control your asset. The smart contracts enforce this—it's not a policy choice that could change.

Legal Compatibility We work within existing property law, not around it. Fabrica tokens are designed to be recognized by courts, accepted by title companies, and compliant with regulations.

Open Infrastructure Property tokens use standard interfaces. Developers can build applications, marketplaces can list properties, and lending protocols can accept collateral—all without Fabrica's permission or involvement.

Transparency Property status, validation history, and confidence scores are visible onchain. Buyers and lenders can verify everything before transacting.

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Next Steps

Ready to see these concepts in action?

• Property Lifecycle — How properties move onchain and off
• Trading — Buy and sell property tokens
• Lending — Use your property as collateral
• Technical Architecture — Deep dive into the protocol design