Several countries in Europe, including Poland and Georgia, have already taken steps to concretely use blockchain technology to bring security and transparency to land registration.
Buying and selling homes is considered one of life’s most stressful experiences, worse than finding a job, planning a wedding, or even having a child.
But blockchain, the technology behind cryptocurrencies, could streamline the process.
Land registration is a subject that most people, unless they work in the real estate industry or are involved in a real estate transaction themselves, have probably never heard of. But the role of land registration in the real estate market cannot be underestimated.
Blockchain technology is already used by European states. Take Sweden, which began testing uses of blockchain technology on the country’s land registry to address numerous security issues in 2016.
Since then the Swedish government and other European countries have made great strides in integrating blockchain technology into their land registration system. According to an estimate by one of the Swedish government’s project partners, the use of blockchain technology in the government’s land registration system will save the government $106 million per year, as it will help eliminate the paperwork, reduce fraudulent activity and speed up transactions.
So far in Europe, Sweden is the most advanced country in integrating blockchain with its current land registration system, which could serve as a model for other countries in Europe to improve their land registration systems using blockchain technology.
Poland has also guaranteed online public access to land registers and is setting up an infrastructure to initiate land registration procedures electronically, using qualified electronic signatures. In 2016, Georgia created a blockchain land registry system allowing members of the public to securely verify title deed ownership. In 2018, the Netherlands formed a specialist unit to study the future of blockchain in terms of legal issues, economic impact and ethics.
The European Union is also moving towards integrating smart regulations such as blockchain.
In 2018, 22 European countries signed a statement to share blockchain experience and expertise across Europe and launch EU-wide blockchain applications. This declaration aims to enable the adaptation of blockchain technologies across the continent and pave the way for the creation of a European ecosystem for blockchain services and applications and the launch of blockchain applications on an EU-wide scale. EU on digital markets. Furthermore, the declaration will also serve as a basis for future discussions and cooperation across Europe.
Like contemporary technologies in the early stages of adoption, blockchain can thrive as long as policymakers develop effective regulatory frameworks.
However, legislation can also be barrage. According to Omid Malaken, a professor at Columbia Business School, “if regulations go too far, they will diminish the appeal of using this technology in the first place. The best regulations will take advantage of the unique benefits of blockchain technology, such as full transparency and the ability to automate important activities to reduce human error and potential fraud.
As it is difficult for fraudsters to duplicate the blockchain, set up a cadastre using this innovative technology helps to avoid any illegal activity involved in land transactions.
Contracts and ownership details are kept in a decentralized method. It is easy to track the data transaction from the blockchain implementation as it eliminates the need for physical intervention and improves the overall security of system users.
Blockchain offers the opportunity to establish a strong system of digital identity. Using blockchain, each block in the network represents the data involved in a land transaction which includes details such as property identification, property number, owner details, transaction amount, payment method and the most recent transaction details such as the amount that was paid for it. transaction.
Land registration involves the collection of details such as ownership and size of property. Currently, all of most governments cadastre maintenance process is too complicated since it involves keeping large volumes of records in a safe place in written form.
In addition, the traditional method used in land registration processes is considered less secure as the process is not transparent, systems are slow, and the exchange of title deeds is sometimes not recorded accurately.
It’s time to refocus information systems
Many attempts have been made to automate the maintenance of land registry data by eliminating the process of keeping bookish records, such as maintaining data in huge databases.
Unfortunately, these methods are ineffective when it comes to data security because data content is easily breached, which opens the door to data tampering, which can occur in case of poorly maintained databases. This persistent problem has led experts to come up with and develop other ways to secure data in a virtual capacity, such as blockchain technologies.
Blockchain’s potential to revolutionize land registration systems would benefit consumers and save taxpayers money that will benefit future generations as digital technology develops rapidly.
The current initiatives that Sweden and the European Union are undertaking present an excellent opportunity for governments to refocus their information systems, promote consumer trust and protect personal data, thereby providing more business opportunities that benefit the current generation of consumers.
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