Blockchain-Based Title Confirmation and Transaction Mechanism for Commercial Real Estate Tokenization

Abstract

Amid the rapid development of Web3.0 technologies and blockchain infrastructures, the commercial real estate industry is experiencing a significant shift toward digitalization. This study proposes a tokenization framework for commercial real estate assets, grounded in the ERC-1400 standard. The system enables precise asset share registration via smart contracts and ensures regulatory compliance through on-chain KYC authentication and identity mapping mechanisms. To address liquidity challenges, an off-chain valuation oracle and a decentralized finance (DeFi) collateralization model are integrated into the architecture, enhancing the tradability of tokenized real estate assets. Simulation experiments and empirical analyses were conducted to evaluate title confirmation efficiency, asset liquidity, and operational controllability. The results demonstrate that, compared to conventional methods, the proposed system improved title confirmation efficiency by 99.6% (t = 327.4, p < 0.001), increased average daily transaction volume by 327% (χ² = 158.6, p < 0.001), achieved 100% transaction accuracy in 1,500 simulations, and successfully identified and intercepted 47 abnormal transactions via the KYC mechanism. These findings provide both a viable technical approach and theoretical basis for implementing real estate asset tokenization in practice, contributing to the secure and scalable integration of traditional assets into decentralized ecosystems.