Global Initiatives on Real Estate title registries and Blockchain
The introduction of Blockchain technology has had an incredible impact on various industries; allowing a number of innovative opportunities to be introduced throughout the process. Most recently, the idea of constructing land registries on Blockchain technology is being explored as an interesting use case. Globally, countries such as Sweden and Honduras among others, have already begun to explore the viability of building land registries on Blockchain.
Traditionally, land title registries within many states have been documented either digitally or on paper; of which, both options have proven vulnerable to a number of issues. Most notably, problems such as ‘bad titles’, lost or inaccurate records, as well as corruption and inefficiency, have motivated states to investigate the feasibility of implementing Blockchain technology for creating land title registries. The application of Blockchain technology, which employs a network of distributed databases, will aid in resolving many of the hurdles that states are currently facing with traditional systems.
Honduras for instance, has historically had concerns with land title fraud; most cases involving bureaucrats taking advantage of the state’s system in order to receive favorable properties. Recently, the Honduran government has allowed an American company to build a land title record system using Blockchain technology. With the benefit of some of Blockchain’s features, such as the use of hashes to identify every real estate transaction, as well as it’s immutable quality, the land title registry process will become significantly more efficient, secure and transparent. Additionally, in cases of natural disasters, employing a network of distributable databases for land title registries, will aid in the process of recovering lost records.
Sweden is another example of a state that has found success in adopting Blockchain technology for the construction of land title registries. After two years of testing, the Swedish government successfully completed the first Blockchain technology property transaction. The most significant result of this experiment, was the ability of Blockchain technology to dramatically cut down the time it took to register the sale of property. Within the traditional structure of land-ownership in Sweden, a digital system, the average time it took to register a sale took anywhere between three to six months. In contrast, with the use of a Blockchain system, it only took a few hours.
Blockchain technology continues to reveal enormous potential for the creation of land title registries. The technology continues to prove to be more efficient, secure, and transparent than traditional systems, as well as a reliable choice for governments around the world.