Blockchain Technology has found a powerful use case in the Land Registration Process because of the security features it offers. The unalterable and non-hackable properties of a Blockchain are enticing Governments around the globe to implement Blockchain solutions in the Land Registry Process.
One of the recent examples is Swedish Land Registry, which is in the process of implementing Blockchain Solutions for Land Registry Process and has already performed pilot testing of the solution. However, instead of the implementing originally ideated use case of Blockchain for Land Registry which involves putting ‘colored coin’ representing the house on a blockchain, Swedish Land Registry is looking to reform the workflow of selling a property which integrates with existing systems for keeping track of ‘who owns what’ utilizing Smart Contracts.
A Smart Contract is a pre-written computer code/logic that is stored in a distributed database of a Blockchain network and can result in ledger (shared) updates. (Read more about Smart Contracts here https://www.sofocle.com/understanding-smart-contracts/
Smart Contracts can
- Reduce the risk of registering incorrect information
- Assist in getting title deed and the confirmation from the land registry of ownership of the land.
- Utilize unique digital fingerprint to regulate and control the workflow, correctness of the document, and the rules & order of authorization.
By utilizing digital signatures in all steps in the process of selling a house, the total time of doing a deal is reduced from several months to few days. The use of digital signature will reduce the time even for a centralized database, but it is susceptible to ‘attacks’ when a history is changed.
Together with a Blockchain network, Smart Contracts add a chain of evidence that comes from a history that cannot be altered. There are multiple copies of data (transaction/changes) stored with all parties involved. Each party in the Blockchain Network knows what other party is doing and verifies digital signatures in the workflow of all the steps and agrees to the steps in the workflow. This process helps in eliminating those fraudulent cases in which people sell what they don’t own. Only the parties involved; buyers, sellers, land registry, real estate agents can see the same information.
Sofocle has a pool of consultants and engineers, having expertise in developing and implementing Blockchain solutions based onSmart Contracts. To know more about how Smart Contracts and Blockchain can be utilized in Land Registration Process, please schedule a meeting with a Blockchain expert from Sofocle.