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Blockchain & Real Estate Glossary

Simple explanations of blockchain and real estate terms—all in one place.

Blockchain & Real Estate Terms Made Simple

Blockchain and real estate technology can come with a lot of unfamiliar words. This glossary explains common terms in simple language so you can better understand what they mean and how they may relate to real estate.

Select a term below to learn more.

Technology that can analyze information, recognize patterns, organize documents, and assist with tasks. In real estate, AI can help with things like reviewing information, tracking transaction details, and identifying items that may need attention.

Something that has value. A home, land, money, and certain digital tokens can all be considered assets.

A blockchain is a digital ledger that securely records and verifies transactions across a network of computers. Transactions are grouped into “blocks” that are linked together in order, creating a transparent and tamper-resistant record of activity.

The process a blockchain network uses to agree that transactions and information are valid before adding them to the blockchain.

A digital asset that uses blockchain technology. Bitcoin, Ether, XRP and XLM are examples of cryptocurrencies.

A system where control or recordkeeping is distributed among multiple participants rather than being controlled by one central authority.

A deed or information connected to a deed that has been recorded, verified, or referenced using blockchain technology.

Blockchain can help create a verifiable record showing that certain deed information or a digital fingerprint of the document existed at a particular point in time.

Putting deed information on a blockchain does not by itself transfer legal ownership or replace the legal recording requirements where the property is located.

A deed that is created, signed, recorded, stored, or represented using digital technology. Blockchain can also be used to help verify certain information connected to a deed.

A way of verifying who someone is electronically. This might involve a government-issued ID, digital credentials, facial recognition, or other secure verification methods.

An electronic method used to sign or authenticate information. Depending on the system, it can also help verify who signed something and whether information was changed afterward.

A neutral process in which money, documents, or other items are held until the requirements of a transaction are met.

A fee paid to process a transaction on certain blockchain networks. The amount and way fees are calculated depend on the blockchain being used.

A unique digital fingerprint created from information or a document. If the information changes, even slightly, the resulting hash changes too. This can help show whether a digital document still matches the original.

Describes information that is designed to be extremely difficult to change after it has been recorded on a blockchain. This does not mean incorrect information can never be addressed—it means the original blockchain record generally remains part of the history.

A record of transactions or information. A blockchain is a type of digital ledger shared and maintained across a network.

A unique digital token recorded on a blockchain. An NFT can represent many different things, including something associated with real estate. However, owning a property-related NFT does not automatically mean you legally own the property.

A computer or system that participates in a blockchain network. Nodes can help store, verify, or share information across the network.

Information or a transaction that has been recorded directly on a blockchain. For example, a record used to verify information connected to a property document could be stored on-chain.

A service that provides outside information to a blockchain or smart contract. For example, a smart contract may need verified information from outside the blockchain before it can carry out an action.

A secret digital key used to authorize blockchain transactions or access digital assets. Think of it somewhat like a very powerful digital password that should never be shared.

A cryptographic key that can be shared and is used with a private key in blockchain systems.

A real-world asset is a physical or traditional financial asset that exists outside the blockchain, such as real estate, government bonds, or other investments.

Blockchain technology can be used to create digital tokens or records connected to these assets.

In real estate, the legal structure determines what rights a blockchain token actually represents.

A smart contract is a computer program on a blockchain that follows programmed rules and can automatically carry out certain actions when required conditions are met.

In real estate, a smart contract could help automate certain approved steps in a transaction, such as confirming that requirements have been completed before allowing the next programmed action to occur.

A type of cryptocurrency designed to maintain a relatively stable value, often by being tied to a currency such as the U.S. dollar. Stablecoins can be used to move money digitally and may be used in some real estate transactions.

A digital representation of value, rights, access, or an asset on a blockchain. Depending on how it is created, a token could represent anything from a financial asset to an interest connected with real estate.

Tokenization is the process of creating digital tokens that represent certain rights or interests connected to an asset.

In real estate, a token could represent an ownership interest or other rights connected to a property.

A token represents property ownership only when the proper legal structure connects the token to those ownership rights.

A participant in certain blockchain networks that helps verify transactions and maintain the network.

A blockchain wallet is a digital tool used to interact with blockchain networks and manage digital assets.

A wallet uses cryptographic keys to allow someone to send, receive, or authorize transactions.

The digital assets aren’t actually stored inside the wallet like money in a physical wallet. The wallet provides access to and control over assets recorded on the blockchain.

A broad term for internet technologies and applications that use blockchain, digital assets, smart contracts, and decentralized systems.

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