Automated Tokenization Of Property Rights

Abstract

A system for bridging between centralized and decentralized systems such that an owner can access equity in their property and a purchaser can have a high degree of confidence in the property rights being purchased. The system includes an equity conversion computer having software executing thereon to intake property information and property conversion software executing thereon to convert the real property rights to be collateralized into tokens to be registered on blockchain (decentralized system) and on government computer systems (centralized systems). The software intakes the information, saves the information in a usable format and generates various documents in formats usable by the various system the equity conversion computer communicates with. The tokenized property rights can then be converted to a crypto currency by a purchaser desiring to purchase the property rights associated with the tokens.

Claims

1. A method of automatically tokenizing property rights to convert to a crypto currency with an equity conversion computer having software executing thereon and having access to a network, the equity conversion computer performing the following steps: presenting a property information intake page to a user computer associated with a user account including an electronic wallet, the property information intake page comprising a plurality of property information fields; saving property information input into the plurality of property information fields on the storage in a first format; automatically generating a property profile based on the property information saved on the storage and transmitting the property profile to the user computer; generating documents granting property rights associated with the real property profile to a governing entity; generating recordation documents for recording the property rights with a government recordation computer; generating a smart contract associated with the property rights; generating tokens associated with the smart contract; recording the smart contract in blockchain; and transferring the tokens to a wallet saved on the storage of the user computer.

2. The method of claim 1 further comprising the steps of: displaying the tokenized property rights for purchase; transferring a monetary value to the wallet; and transferring the tokens from the wallet to a rights purchaser computer.

3. The method of claim 2 wherein the step of displaying the tokenized property rights for purchase is performed by the equity conversion computer.

4. The method of claim 2 wherein the step of transferring a monetary value to the wallet further comprises the steps of: transferring the monetary value to the equity conversion computer, which then transfers the monetary value to the wallet.

5. The method of claim 2 wherein the step of transferring the tokens from the wallet to a rights purchaser computer further comprises the steps of: transferring the tokens to the equity conversion computer from the wallet, which then transfers the tokens to the rights purchaser computer.

6. The method of claim 1 wherein the step of generating tokens associated with the property rights further comprises: generating parent tokens; and generating child tokens.

7. The method of claim 1 wherein the property rights are real property rights, and the governing entity comprises a Home Owners Association (HOA) or a Property Owners Association (POA).

8. The method of claim 7 wherein the tokenized real property rights are selected from the group consisting of: surface rights, subsurface rights, digital rights of display and combinations thereof.

9. The method of claim 8 wherein the surface rights are selected from the group consisting of: crops, livestock, timber, easement, carbon sink and combinations thereof.

10. The method of claim 8 wherein the subsurface rights are selected from the group consisting of: water, mineral, storage, easement, carbon sink, and combinations thereof.

11. The method of claim 7 wherein if the governing entity for the jurisdiction in which the real property rights are located does not exist, the method further comprises the steps of: the equity conversion computer automatically generating governing entity documents in a second format to form the governing entity, the governing entity documents formatted to be automatically received by a government recordation computer; and the equity conversion computer filing the governing entity documents with the government recordation computer.

12. The method of claim 1 wherein the electronic wallet comprises Anti-Money Laundering (AML) and Know Your Client (KYC) information.

13. The method of claim 1 further comprising the step of: the equity conversion computer generating login credentials associated with a user accessing the equity conversion computer to create a user account; wherein the wallet is generated by the equity conversion computer.

14. The method of claim 1 wherein the step of transmitting the property profile to the user computer further comprises: the equity conversion computer receiving a confirmation from the user computer related to the property profile.

15. A system for automatically tokenizing property rights to convert to a crypto currency with a computer having access to a network, the system comprising: an equity conversion computer having a storage and coupled to a network; property intake software executing on said equity conversion computer presenting a property information intake page to a user computer via the network and associated with a user account having an electronic wallet, the property information intake page comprising a plurality of property information fields; said property intake software saving property information input into the plurality of property information fields on the storage in a first format; said property intake software automatically generating a property profile based on the property information saved on the storage and transmitting the property profile to the user computer; property conversion software executing on said equity conversion computer generating documents granting property rights associated with the property profile to a governing entity; said property conversion software generating recordation documents for recording the property rights with a government recordation computer; said property conversion software generating a smart contract associated with the property rights; said property conversion software generating tokens associated with the smart contract to generate tokenized property rights; said property conversion software recording the smart contract in blockchain; and said property conversion software transferring the tokens to a wallet saved on the storage of the user computer.

16. The system of claim 15 wherein: said property transfer software executing on said equity conversion computer displays the tokens associated with the smart contract for purchase; said property transfer software receiving a first monetary value from a rights purchaser computer; said property transfer software transferring a second monetary value to the wallet; and said property transfer software transferring the tokens from the wallet to the rights purchaser computer.

17. The system of claim 15 wherein when said property conversion software generates tokens, the tokens comprise: parent tokens; and child tokens.

18. The system of claim 15 wherein the property rights comprise real property rights and the governing entity comprises a Home Owners Association (HOA) or a Property Owners Association (POA).

19. The system of claim 18 wherein the tokenized real property rights are selected from the group consisting of: surface rights, subsurface rights, digital rights of display and combinations thereof.

20. The system of claim 19 wherein the surface rights are selected from the group consisting of: crops, livestock, timber, easement, carbon sink and combinations thereof.

21. The system of claim 19 wherein the subsurface rights are selected from the group consisting of: water, mineral, storage, easement, carbon sink, and combinations thereof.

22. The system of claim 18 wherein if the governing entity for the jurisdiction in which the real property rights are located does not exist: said property conversion software automatically generates governing entity documents to form the governing entity, the governing entity documents formatted in a second format to be automatically received by a government recordation computer; and said property conversion software filing the governing entity documents with the government recordation computer.

23. The system of claim 15 wherein the electronic wallet comprises Anti-Money Laundering (AML) and Know Your Client (KYC) information.

24. The system of claim 15 further comprising: account creation software executing on said equity conversion computer, said account creation software generating login credentials associated with the user accessing the equity conversion computer to create a user account; wherein the wallet associated with the user is generated by the account creation software.

25. The system of claim 15 wherein the step of transmitting the property profile to the user computer further comprises: said property intake software receives a confirmation from the user computer related to the property profile.

Description

BRIEF DESCRIPTION OF THE DRAWINGS

[0047] FIG. 1 is a block diagram of the system for automatically tokenizing property rights to convert to a crypto currency.

[0048] FIG. 2 is a functional block diagram illustrating the process of tokenizing property rights to convert to a crypto currency according to the system of FIG. 1.

[0049] FIG. 3A is a flow diagram of a method for automatically tokenizing property rights to convert to a crypto currency according to the system of FIG. 1.

[0050] FIG. 3B is a flow diagram of a method for automatically tokenizing property rights to convert to a crypto currency according to the system of FIG. 1.

[0051] FIG. 4 is an embodiment of the invention utilizing property rights according to the system of FIG. 1.

[0052] FIG. 5 is an embodiment of the invention utilizing property rights according to the system of FIG. 4.

[0053] FIG. 6 is an embodiment of the invention utilizing property rights according to the system of FIG. 4.

[0054] FIGS. 7-13 are embodiments of the graphical user interface for the property intake software according to the system of FIG. 1.

[0055] FIGS. 14-19 are embodiments of the graphical user interface for the property conversion software according to the system of FIG. 1.

[0056] FIG. 20 is an embodiment of the profile of the property generated by the property intake software according to the system of FIGS. 7-13.

DETAILED DESCRIPTION OF THE INVENTION

[0057] Referring now to the drawings, wherein like reference numerals designate corresponding structure throughout the views.

[0058] FIG. 1 is a block diagram showing the system 10 for automatically tokenizing property rights to convert to a crypto currency. The system comprises an equity conversion computer 12 that has a storage 14 and is connected to a network 16, which may comprise the internet. Equity conversion computer will have software executing thereon comprising several software modules that may comprise programs.

[0059] Also illustrated in FIG. 1 is user computer 18, which has a storage 20 accessible thereto. The user computer allows a user to access the equity conversion computer 12 via the network 16 connection. Additionally, the storage 20 may have user information stored thereon, including property information the user is looking to tokenize as well as the user’s electronic wallet 22. It is contemplated that many user computers may access the equity conversion computer 12, which is why multiple computers are illustrated.

[0060] Also shown in FIG. 1 is blockchain 24, which is accessible to the equity conversion computer 12 via the network 16 connection. As blockchain 24 is understood by those of skill in the art, it will not be extensively described herein.

[0061] Rights purchaser computer 26 having a storage 28 is further illustrated in FIG. 1. The storage 28 further illustrates an electronic wallet 22 associated with a user of the rights purchaser computer 26. Again, it is contemplated that many different user’s could access equity conversion computer 12 via network connection 16 which is why multiple computers are illustrated.

[0062] Finally, a government recordation computer 32 having a storage 34 is shown in FIG. 1 and is accessible by equity conversion computer 12 via network connection 16. It is contemplated that multiple different government recordation computer may need to be accessed by equity conversion computer 12, which is why multiple computers are illustrated.

[0063] FIG. 2 is a functional block diagram of the system 10 for automatically tokenizing property rights to convert to a crypto currency. The functional block diagram lists a series of steps that the system may process. It should be noted that, while various functions and methods have been described and presented in a sequence of steps, the sequence has been provided merely as an illustration of one advantageous embodiment, and that it is not necessary to perform these functions in the specific order illustrated. It is further contemplated that any of these steps may be moved and/or combined relative to any of the other steps. In addition, it is still further contemplated that it may be advantageous, depending upon the application, to utilize all or any portion of the functions described herein.

[0064] Initially a user may login 40 accessing the equity conversion computer 12 using user computer 18. The login procedure may comprise any number of secure methods to ensure that only the user is able to access the equity conversion computer 12 with the user account.

[0065] Once the user has logged in, the user may access a variety of property information fields in one or more screens to input property information 42 via property intake software 36 executing on equity conversion computer 12. This process may include the entry of a substantial amount of information relating to the property including, but not limited to, the address of the property, the acreage and configuration of the property or properties, the type of access to the property (e.g., paved road, gravel road, dirt road, number of lanes, easements, etc.), any studies and / or reports that have been carried out with respect to the property (e.g., studies relating to oil or gas reserves on the property, mineral deposits, depth of the reserves / deposits, the soil composition, the oil / gas / mineral reserves on nearby properties, etc.), any or all improvements on the property (e.g., structures, fields, barns, drainage, wells, utilities, etc.), a detailed description of the improvements including photographs of the property and the improvements along with construction or government records relating to the improvements, a description of any and all bodies of water on the property including access and whether navigable, a description of any and all rivers, creeks and streams that run in / out / across the property, the depth of any wells on the property, and so on. It should be noted that this listing is only provided to illustrate some of the information that can be input into the system and is not meant to be limiting.

[0066] Once the property information is entered into the equity conversion computer 12 and saved on storage 14, the property intake software 36 then generates a property profile 44. The user may then confirm 46 that the property profile is accurate and complete based on the rights the user would like to tokenize. Also illustrated in FIG. 2 is property conversion software 38, which uses the property profile 44 to generate documents 48. These documents may comprise a smart contact, and a legal contract subjecting the property to a governing entity. As stated previously, the governing entity may comprise for instance, a HOA or a POA that outlines property rights that may be tokenized. Once the smart contract is generated, it may be saved / recorded 50 to blockchain 24.

[0067] Additionally, the legal contract that places the property under the governing entity may be filed with government computer 32. A unique function of the property conversion software 38 is that it creates the governing entity documents in accordance with the property right associated with the property, the system files, and the governing entity docs. The property conversion software 38 can also identify additional rights that may be dormant and include them in the documents created for the HOA / POA Governing Entity.

[0068] The government computer 32 may comprise one or more computers depending on the documents that need to be filed. For example, if a governing entity already exists in the state in which the property is located, then the documents need only place the property under the auspices of the governing entity and can be filed with the county recorder’s office. If, however, an entity does not exist in the state, then the documents may comprise the creation of a governing entity and filing of those documents may occur to properly form the entity, after which documents placing the property under the auspices of the newly formed governing entity can occur. In any event, the property conversion software 38 can record the documents 52 with the appropriate government computer 32.

[0069] The property conversion software 38 will also generate tokens 54 that are associated with the property rights that have been tokenized. These tokens can then be transferred 56 and saved in the user’s electronic wallet 22. As was previously stated, the user’s electronic wallet 22 may comprise Anti-money Laundering and Counter-Terrorism Financing (AML/CFT) information. AML/CFT compliance may vary by jurisdiction, but can be generalized into two main groups of measures: 1) (Electronic) Know Your Customer (eKYC) is the obligatory (remote) verification of each new customer identity at sign-up, and may include further probing of the customer over time if the user wants to unlock new transaction limits or store more funds on an account; and 2) Screenings that are based on cross checking the customer’s identity against sanctions lists of individuals or entities known to be associated with criminal activities, terrorist funding or even being politically exposed (thus highly susceptible to corruption and money-laundering activities). The goal of the KYC process is to identify the customer of the e-wallet application and therefore to be able to validate customer-related risks.

[0070] At this point, the property conversion software 38 can present the tokens on the equity conversion computer 12 to the public for the purpose of allowing the public to purchase the tokens with the associated property rights. At this point rights purchaser computer 26 is illustrated querying the property rights 58. Once the purchaser using the property rights computer 26 identifies property rights they want to obtain, they can contact the property owner to negotiate a sale price for the tokens in the user’s wallet 22. Once this is decided, the purchaser can transfer funds 60 to the equity conversion computer 12, which in turn can then be received 62 by the user computer 18 and saved to the user’s wallet 22. The equity conversion computer 12 can also transfer the tokens 64 out of the user’s wallet 22, which tokens will be received 66 by the rights purchaser computer 26 to be saved in the purchaser’s wallet 30.

[0071] Referring now to FIGS. 3A and 3B, a new user 70 accesses the equity conversion computer 12 to create a user account 72. The process of creating a login can include creating a username and password 74 and can further include additional identification methods such as two-factor identification and the like.

[0072] Once the user account is created, the equity conversion computer 12 can connect 76 to the user’s electronic wallet. As described previously, this allows the system to identify the person associated with the electronic wallet 22. Alternatively, if the user does not have an electronic wallet 22, the system can generate an electronic wallet 22 to be associated with the user. From here, the user may be presented with one or more property input screen 78 that may include a plurality of information fields where the user can input relevant information about the property and the property rights to be conveyed including for example, a property type 80.

[0073] Once the user has input all the relevant information into the various fields, the software will save the data into a format that the system can use, and the input is complete 82. The property input software can then generate a property profile 84 that includes the information about the property that the user input into the system as well as other information the system may have that may be useful in determining the value of the property rights the user is looking to tokenize. This information could include the value of similar rights in properties near the current property, and / or could include any reports or studies relating to oil / gas / minerals / carbon sink and the like in similar properties or properties adjacent to or close by the current property. In one configuration, the system utilizes the Mongo Database (MongoDB), which is a nonrelational database management system (DBMS) that uses flexible documents instead of tables and rows to process and store various forms of data. As a NoSQL solution, MongoDB does not require a relational database management system, so it provides an elastic data storage model that enables easy storing and querying multivariate data types.

[0074] Once the property profile is completed, it is sent to the user 86 for the user to review and adjust if needed. If the property profile is complete and accurate, then the user can confirm this with the equity conversion computer 12.

[0075] Referring now to FIG. 3B, which is a continuation from FIG. 3A, the property conversion software can then mint or generate a parent token 88 for the rights to be conveyed associated with the parent token. A parent token can be any token that conveys a broad property right, such as, a minerals rights, or a right of occupancy on the property or a right to digitally display the property.

[0076] Once the parent tokens are generated, the property conversion software can then generate child tokens, which reflect a subset of rights associated with the parent tokens. In the above example, the child tokens could comprise the right to mine Lithium as a subset of the mineral rights, or it could be a right of occupancy for a period of three months, or it may comprise a right to digitally display the property for a limited time or on a specific platform. It will be understood by those of skill in the art that a smart contract is generated at the time the various tokens are minted / generated.

[0077] At this point, a property management contract is created 92 that places the property under the control of a governing entity as has been previously discuss in connection with FIGS. 1 and 2. The property management contract is then sent for recordation 96 as previously discussed.

[0078] The parent and child tokens can then be listed on the equity conversion computer 12 for public viewing. It should be noted that not all of the minted tokens need to be listed. For example, the seller may only want to offer child tokens for sale. Additionally, the smart contracts for the parent and child tokens as well as any other necessary information is recorded in Blockchain 94, 94′. Finally, the parent tokens and child tokens are transferred to the user’s electronic wallet 98, 98′.

[0079] It should be noted that the recordation of the property rights with the county clerk’s office makes it possible to cross verify that the documents recorded on the blockchain are valid, giving the purchaser a high degree of confidence. The system described in connection with FIGS. 1-3B bridges centralized and decentralized system because the information is validated and shared with each recording entity: blockchain and county recorder’s office.

[0080] Another example of how a homeowner can utilize their home as a method for generating currency is further described. A residential real property is purchased. The residential real property owner desires to utilize cryptocurrency. The residential real property owner obtains market comparable studies to determine the amount of equity available for crypto collateralization. Crypto collateralization is stated as a percentage of the real property with a current dollar value, or crypto equity position. The crypto equity position is determined at the crypto collateralization and is reflective of the percentage of real property utilized for the purpose of crypto collateralization. Upon authorization from the governing entity (or a governing body which possesses the power to impose liens or other legal encumbrances on the property) and the property owner, the issuing entity creates: a blockchain title registry, cryptocurrency, account, smart contract, blockchain, and proper title documents for recordation with the local authority. Cryptocurrency coins or tokens are assigned at a valued increment against the current equity value in the subject property. The governing entity and homeowner authorize the issuing entity to create and release a stated amount of cryptocurrency for sale. The issuing entity, on behalf of the homeowner, sells the cryptocurrency and places the proceeds from the sale into an escrow account for the residential real property owner’s benefit.

[0081] Alternatively, a nonresidential real property may be used in like manner. The nonresidential property owner obtains market comparisons to determine the amount of equity available for crypto collateralization. The crypto collateralization is stated as a percentage of the real property with a current dollar value, called a crypto-equity position. The crypto-equity position is determined at the time the crypto collateralization, is initiated, and is reflective of the percentage of real property utilized for the purpose of crypto collateralization. Upon authorization by a governing entity and the nonresidential real property owner, the issuing entity creates: a blockchain title registry; a crypto currency account; a smart contract, blockchain, and proper title documents for recordation with the local authority. Cryptocurrency coins or tokens are assigned at a valued increment against the current equity value in the subject property. The governing entity and nonresidential property owner authorize the issuing entity to create and release an agreed upon amount of cryptocurrency for sale. The issuing entity sells the cryptocurrency and places the proceeds from the sale into an account for the real property owner’s benefit.

[0082] Still further, in another example a real property owner wants to allocate the use of the surface or subsurface rights in the real property. The individual desires to utilize crypto currency for the purpose of allocating surface or subsurface rights. The individual obtains market comparisons to determine the amount of equity available for crypto collateralization. The crypto collateralization is stated as a percentage of the real property with a current dollar value, called a crypto-equity position. The crypto-equity position is determined at the time the crypto collateralization is initiated and is reflective of the percentage of real property utilized for the purpose of crypto collateralization. Upon authorization from a governing entity and the income property owner, the issuing entity creates: a blockchain title registry; a cryptocurrency account; a smart contract, Blockchain, escrow account, and proper title documents for recordation with the local authority. Crypto currency coins or tokens are assigned at a valued increment against the current equity value in the subject property. The governing entity and real property owner authorize the issuing entity to create and release an agreed upon amount of crypto currency for sale. The issuing entity sells the crypto currency and places the proceeds from the sale into an escrow account for the purchase of the real property. The purchasers of the crypto currency own certain rights associated with the use of the surface or subsurface of the real property.

[0083] Referring to FIG. 4 one example of how a homeowner can utilize their home as a method for generating currency is presented. A residential real property 101 is purchased. The homeowner obtains market comparable studies, for example obtaining the value of homes 105, 107, and 109, to determine the amount of equity available for crypto collateralization. These market studies consider the comparable aspects of each home. Aspects such as: the size of each of the homes, the location of each of the homes, the age of each of the homes, the size of the land attached to each of the homes, and so on. The studies endeavor to quantify these aspects and define a picture of the value of the new homeowner’s real property. Once the studies have been carried out, a value is assigned to the real property. When the real property has been assigned a value, a governing entity 103 presents this to the homeowner. The homeowner decides the amount of currency they wish to obtain. The governing entity 103 submits the value and the request for collateralization to the issuing entity, which begins the currency issue process. The amount the homeowners wishes to obtain in crypto collateralization is stated as a percentage of the real property with a current dollar value. The crypto-equity position is determined at the crypto collateralization and is reflective of the percentage of real property utilized for the purpose of crypto collateralization. The issuing entity creates: block chain title registry 111, crypto currency 113, account, smart contract 115, block chain and smart contract hyper ledger. Crypto currency coins 113 are assigned valued increment against the current equity value in the subject property, essentially upon assignment, each cryptocurrency coin 113 is worth One Dollar (USD 1.00) of the assigned value of the real property. The homeowner and the governing entity 103 authorize the issuing entity to release a stated amount of crypto currency for sale. The issuing entity mediates the sale of the crypto currency 113 and places the proceeds from the sale into an escrow account for the residential real property owner’s benefit.

[0084] In some embodiments, the equity become a liquid asset for the homeowner, where the homeowner can use the amount of equity for whatever they desire while forgoing the actual ownership of that equity. When a homeowner decides to place a residential property up for collateralization the governing entity initiates the protocol for the collateralization process. This protocol imports all the details of the property and the current encumbrances on the property, to the issuing entity. Once all of the data of the property is entered into the protocol, the property is collateralized with crypto currency and each coin of the cryptocurrency is valued at approximately one U.S. dollar. For example, a property that is valued at $500,000 would issue 500,000 coins. The coins are placed in an auction. Those who want to buy the coins can bid on them in the auction. The protocol will sell the coins at the auction. Even if there is a mortgage on the property, the coins will sell for the full value of the equity in the property. The proceeds from the sale will be used to pay off the mortgage, and the amount of equity owned by the property owner will be paid to the property owner. The property owner will then have the amount of their equity to use in whatever manner they wish. The homeowner will still maintain the right to occupancy and may have a payment to the issuing entity to maintain that right to occupancy.

[0085] A monetary event, such as sale of the property will result in a cashing out of the coins related to that property. All purchased coins related to that property will be paid at the current value of the coins purchased.

[0086] In some embodiments, the governing entity is an HOA, and the issuing entity is an organization developed for the issuing and oversight of the cryptocurrency. In other embodiments, the governing and issuing entities are the same company. In many embodiments where the governing and issuing entities are the same entry, that entity is an HOA.

[0087] In an alternative embodiment, the currency is a currency other than crypto currency. A residential real property 101 is purchased. The homeowner decides to utilize asset backed currency. The homeowner obtains market comparable studies, for example obtaining the value of homes 105, 107, and 109 to determine the amount of equity available in the property. These market studies consider the comparable aspects of each home as previously described. Once the studies have been carried out, a value is assigned to the real property. When the real property has been assigned a value, a governing entity 103 presents this to the homeowner. The homeowner decides the amount of currency they wish to obtain. The governing entity 103 submits the value and the request for currency to the issuing entity, which begins the currency issue process. The amount the homeowners wishes to obtain in currency is stated as a percentage of the real property with a current dollar value. The equity position is determined at the time of the valuation and the minting of the currency and is reflective of the percentage of real property utilized for the purpose of currency creation. The issuing entity creates title registry 111, currency 113, account, contract 115. Currency such as coins 113 are assigned valued increment against the current equity value in the subject property, essentially upon assignment, each currency coin 113 is worth One Dollar (UDS $1.00) of the assigned value of the real property. The homeowner and the governing entity 103 authorize the issuing entity to release a stated amount of currency for sale. The issuing entity mediates the sale of the currency 113 and places the proceeds from the sale into an escrow account for the residential real property owner’s benefit.

[0088] Referring to FIG. 5, an example of how a homeowner can utilize their home as a method for generating currency is presented. A residential real property 201 is purchased. The new homeowner decides to utilize crypto currency to monetize their rights in the real property. Rights in property include surface rights. Surface rights allow the homeowner to utilize the surface of their property. Often the use of surface rights is utilized through agriculture. The use can be growing crops, raising livestock, or both. In many instances surface rights are leased to others. A homeowner can decide to utilize these surface rights through crypto currency collateralization. The property owner obtains market comparable studies, to determine the amount of equity available for crypto collateralization. These market studies consider the comparable aspects of the surface rights. Aspects such as: the size of each piece of land; the location of each piece of land; the soil composition of each piece of land; the likely use of the land; and the value of the use to which the land will be put. For example, the land could be in a location that is well suited to growing corn 219. The market study would then focus on corn for the comparison. The comparison would specify the market rate for the sale of corn, the cost to grow the corn, and possible other uses such as entertainment like corn mazes. Alternatively, the land might be better suited to raising cattle 217. The market studies would then focus on cattle raising. The studies endeavor to quantify these aspects and define a picture of the value of the homeowner’s surface rights. Once the studies have been carried out a value is assigned to the surface rights. When the surface rights have been assigned a value, a governing entity 203 presents this to the homeowner. The homeowner decides the amount of currency they wish to obtain. The issuing entity begins the currency issue process. The amount the homeowners wishes to obtain in Crypto collateralization is stated as a percentage of the surface rights with a current dollar value. The crypto-equity position is determined at the crypto collateralization and is reflective of the percentage of surface rights utilized for the purpose of crypto collateralization. The issuing entity creates: block chain title registry 211, crypto currency 213, account, smart contract 215, block chain and smart contract hyper ledger. Crypto currency coins 213 are assigned at a specific stated value against the current equity value in the surface rights. Essentially each cryptocurrency coin 213 is worth approximately one dollar (USD $1.00) of the assigned value of the surface rights. The homeowner and a governing entity authorize the issuing entity to release a stated amount of cryptocurrency for sale. The issuing entity lists the cryptocurrency 213 for sale and places the proceeds from the sale into an escrow account for the real property owner benefit.

[0089] In some embodiments, the property owner desires the surface rights become a liquid asset for the property owner, where the property owner can use the value of the surface rights for whatever they while forgoing the actual ownership of those rights. When a property owner decides to place the surface rights of a property up for collateralization the governing entity initiates the protocol for the collateralization process. This protocol imports all the details of the property and the current encumbrances on the property, to the issuing entity. Once all the details of the property are entered into the protocol run by the issuing entity, the surface rights of the property are collateralized with crypto currency and each coin of the crypto currency is valued at approximately one U.S. dollar. For example, a property with surface rights that are valued at $1,000,000.00 would issue 1,000,000 coins. The coins are placed in an auction. Those who want to buy the coins can bid on them in the auction. The protocol will sell the coins at the auction. Even if there is a mortgage on the property, the coins will sell for the full value of the surface rights in the property. The proceeds from the sale will be used to pay off the mortgage, and the amount left over after paying the mortgage will be paid to the property owner. The property owner will then have the amount from the collateralization of the surface rights minus the cost of the mortgage to use in whatever manner they wish. The property owner will still maintain other rights to the property.

[0090] A monetary event, such as sale of the property will result in a cashing out of the coins related to that property. All purchased coins related to that property will be paid at the current value of the coins purchased.

[0091] Alternatively, the real property owner decides to utilize crypto currency for subsurface rights. Subsurface rights allow the homeowner to utilize what is found under the surface of their property, which includes mineral, oil and gas rights. In many instances subsurface rights are leased to others. A real property owner can decide to utilize these subsurface rights through crypto currency collateralization. The property owner can establish a valuation of the subsurface rights through one of several methods. In one embodiment, the property owner obtains market comparable studies, to determine the amount of equity available for crypto collateralization. These market studies consider the comparable aspects of the subsurface rights. Aspects such as: the size of each piece of land; the location of each piece of land; the soil composition of each piece of land; the likely use of the land; and the value of the use to which the land will be put. For example, the land could be in a location that is known to have deposits of coltan, which contains tantalum. Tantalum is used in the production of capacitors, such as those found in cell phones, computers, and cameras. The market study would then focus on coltan for the comparison. The comparison would specify the market rate for the sale of coltan, the cost to extract the coltan, and possible other uses. Alternatively, the land might be better suited to oil drilling 221. The market studies would then focus on oil. The studies endeavor to quantify these aspects and define a picture of the value of the new homeowner’s subsurface rights. Once the studies have been carried out, a value is assigned to the subsurface rights. Particularly with respect to oil drilling 221, a different study such as a well size study, could be utilized. These studies may use technology to determine the size of the well and approximate the amount of oil in the well. These well size studies will then assign a value to the subsurface oil rights. When the subsurface rights have been assigned a value, the governing entity presents this to the real property owner. The real property owner decides the amount of currency they wish to obtain. The issuing entity begins the currency issue process. The amount the real property owner wishes to obtain in crypto collateralization is stated as a percentage of the subsurface rights with a current dollar value. The crypto equity position is determined at the crypto collateralization and is reflective of the percentage of subsurface rights utilized for the purpose of crypto collateralization. The governing entity and property owner authorize the issuing entity to create block chain title registry 211, crypto currency 213, account, smart contract 215, block chain and smart contract hyper ledger. Crypto currency coins 213 are assigned a specific stated value against the current equity value in the subsurface rights, essentially, upon collateralization, each cryptocurrency coin 213 is worth approximately one dollar ($1.00) of the assigned value of the subsurface rights. The real property owner and the governing entity 203 authorizes the issuing entity to release a stated amount of cryptocurrency for sale. The issuing entity is then authorized to sell the cryptocurrency 213 and places the proceeds from the sale into an escrow account for the real property owner’s benefit.

[0092] Referring to FIG. 6, the homeowner decides to utilize cryptocurrency for contractual rights. Contractual rights allow the homeowner to utilize others to perform services on the real property, which includes painting, maintenance, improvements, development, or marketing the real property for sale. In many instances contractual rights are granted to other vendors who manage the property. A homeowner can decide to utilize these rights through cryptocurrency collateralization.

[0093] The homeowner can establish a valuation of the contractual rights through one of several methods. In one embodiment, the property owner obtains market comparable studies, to determine the amount of equity in the contractual rights available for crypto collateralization. These market studies consider the comparable aspects of the contractual rights. Aspects such as: the predominant nature of use of the real property; the location of the real property; the amount of improvement to be done to the real property; the likely value of the improved real property; and the value of the services of a real estate marketing agent. For example, the land could be raw land which is in a good location for development. The market study would then focus on other developments for comparison. The comparison would specify the market rate for the sale of developed land, the cost to develop the land, and possible other uses for the land. Alternatively, the land might be better suited to be set aside for environmental easements. The market studies would then focus on potential tax credits and resale value. The studies endeavor to quantify these aspects and define a picture of the value of the homeowner’s contractual rights.

[0094] Once the studies have been carried out, a value is assigned to the different contractual rights as it pertains to the use of the property. Particularly with respect to environmental easement 321 a different study such as potential tax credits or resale value could be utilized. These studies could be based on tax codes or prior resale values for land with environmental designations. These studies will then assign to the contractual rights a value for each such right. When the contractual rights have been assigned a value, the governing entity 303 presents this to the property owner. The property owner decides the amount of currency they wish to obtain. The governing entity and real property owner authorize the issuing entity to begin the currency issue process. The amount the homeowner wishes to obtain in crypto collateralization is stated as a percentage of the contractual rights with a current dollar value. The crypto equity position is determined at the crypto collateralization and is reflective of the percentage of contractual rights utilized for the purpose of crypto collateralization. The homeowner and the governing entity authorize the issuing entity to create: blockchain title registry 311, crypto currency 313, account, smart contract 315, blockchain and smart contract hyper ledger. Cryptocurrency coins 313 are assigned a specific stated value against the current equity value in the contractual rights, essentially, upon collateralization, each crypto currency coin 313 is worth one dollar (USD $1.00) of the assigned value of the contractual rights. The real property owner and the governing body of the housing development 303 authorize the issuing entity to release a stated amount of crypto currency for sale. The issuing entity is then authorized to sell the cryptocurrency 313 and places the proceeds from the sale into an escrow account for the real property owner’s benefit.

[0095] The use of the present system and methods are not limited to real estate and land options. The same system can be applied to other forms of property such as an automobile, (e.g., a high-end sport car, an RV, a camper van, or other automobile), or a boat, or a piece of artwork, or intellectual property (e.g., patents, trademarks, copyrights, or portfolios of each).

[0096] Referring to FIGS. 7-13, webpages are displayed by the property intake software 36. There are various fields illustrated that pertain to the property, such as owner details 801, including their wallet public key 802, property information 803, address information 804, neighborhood information 805, property costs 806, upload property images 807, upload property documents 808, floor plan configuration 810, amenities 811, more details 812, and user confirmation 813. The above is not inclusive of the information required, it is just an example of one configuration for the system.

[0097] Referring to FIGS. 14-19, the property conversion software 38 shows a view of an account 902 including a property associated with a user’s wallet 22 and an interface to disconnect the wallet 904.

[0098] FIG. 14 shows property details 906, which may include, for example, the address of the property 908, the estimated value 910, the status of the property 912, an onboarding date 914, along with other information.

[0099] FIG. 15 shows facts and features 916, where the facts 918 tab is selected. The facts may include, for example, the type of property, the style, the year built, the acreage, if the property includes a deck or patio or garage or carport along with a description thereof, the number of parking spaces, whether there is a basement and if it is finished.

[0100] FIG. 16 shows facts and features 916, where the features 920 tab is selected. The features may include, for example, the type of roof, the type of heating, the type of air conditioning, the type of flooring, the type of window coverings (if any), the exterior features, whether there is a pool, whether there is landscaping, and so on.

[0101] FIG. 17 shows the buy tokens tab 922, where the equity 924 tab is selected. FIG. 18 shows the buy tokens tab 922, where the governance 926 tab is selected. FIG. 19 shows the buy tokens tab 922, where the income 928 tab is selected. The equity tab may present, for example, equity tokens including the total tokens, the circulating supply, the available tokens, the cost per token, and so on. The governance tab may present, for example, governance percentage, and the income tab may present, for example, income percentage.

[0102] Referring to FIG. 20, the property intake software 36 generates a profile of the property for the purpose of creating a blockchain title registry, cryptocurrency, account, smart contract, blockchain and smart contract hyper ledger, and proper title documents for recordation with the local authority. The profile 901 as seen in the graphical user interface, includes the features of the property 902 such as how the house is heated, what type of shingles are on the roof, what type of floor, any outside features, and many other options. The graphical user interface shows these aspects in a clearly visible and understandable representation so that tile user can clearly understand and interpret the data in the profile.

[0103] The invention has been described utilizing real estate or real property. The invention can be used in conjunction with other types of property or possessions. Examples include, but are not limited to automobiles, art, gold, silver, minerals, precious gems, or other possessions.

[0104] Additionally, although the invention has been described with reference to a particular arrangement of parts, features and the like, these are not intended to exhaust all possible arrangements or features, and indeed many other modifications and variations will be ascertainable to those of skill in the art.