How European countries are using blockchain to reform the land registration process
Several countries in Europe, including Poland and Georgia, have already taken steps to make practical use of blockchain technology to bring security and transparency to land registration.
Buying and selling homes is said to be one of the most stressful life experiences, worse than finding a job, planning a wedding or even having children.
But blockchain, the technology behind cryptocurrencies, could streamline the process.
Land registration is a topic that most people, unless they work in the real estate sector, or unless they are involved in a real estate transaction themselves, have probably never heard of. But the role of the land registry in the property market cannot be underestimated.
Blockchain technology is already being used by European states. Take Sweden, which began testing blockchain technology’s use on the country’s land registry to address a number of security concerns in 2016.
Since then, the Swedish government and other European countries have made great strides in incorporating blockchain technology into their land registry systems. According to an estimate by one of the Swedish government’s project partners, using blockchain technology in the state’s cadastral system will save the government 106 million US dollars annually, as it will help eliminate paperwork, reduce fraudulent activities and speed up transactions.
So far in Europe, Sweden is the most advanced country in integrating blockchain with its current cadastral system, which can serve as a blueprint for other countries in Europe to improve their land registration systems through blockchain technology.
Poland also has guaranteed public online access to land registers and is introducing an infrastructure to initiate land registration proceedings electronically, using qualified electronic signatures. In 2016, Georgia created a blockchain land registry system that allows members of the public to securely verify ownership of real estate deeds. In 2018, the Netherlands formed a specialized unit intended to research the future of blockchain in terms of legal issues, economic impact and ethics.
The European Union is also aiming to incorporate smart regulations such as blockchain.
In 2018, 22 European countries signed a declaration to share blockchain experience and expertise across Europe and launch EU-wide blockchain applications. This declaration aims to enable the adoption of blockchain technologies across the continent and pave the way to create a European ecosystem for blockchain services and applications and launch EU-wide blockchain applications across digital markets. Furthermore, the declaration will also serve as a medium for future discussions and cooperation across Europe.
Like modern technologies in the early stages of adoption, blockchain can flourish as long as policymakers develop effective regulatory frameworks.
However, legislation can also act as a deterrent. According to Columbia Business School professor Omid Malaken, “if regulations go too far, they will reduce 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 total transparency and the ability to automate important activities to cut down on human error and potential fraud.”
Decentralization
Since it is difficult for fraudsters to duplicate the blockchain, implementing a land registry using this innovative technology will help avoid illegal activities involved in land transactions.
Contracts and owner details are maintained 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 users of the system.
Blockchain provides an 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 recent transaction details such as the amount paid for it. transaction.
Property registration involves the collection of details such as ownership and size of the property. Currently, most authorities’ entire cadastral maintenance process is too complicated since it involves the secure storage of large amounts of registers in written form.
Also, the traditional method used in land registration processes is considered less secure because the process is not transparent, the systems are slow, and the exchange of deeds is sometimes not recorded accurately.
Time to refocus the information systems
A number of attempts have been made to automate the maintenance of land registry data by eliminating the process of bookkeeping, such as keeping the data in huge databases.
Unfortunately, such methods are ineffective in terms of data security, as the data content is easily breached, opening the door to data tampering, which can occur with poorly maintained databases. This ongoing 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 building lighting systems will benefit consumers and save taxpayers’ money that will benefit future generations amid the rapid development of digital technology.
The current initiatives taken by Sweden and the EU provide a great opportunity for governments to refocus their information systems, promote consumer trust and protect personal data, enabling more business opportunities that benefit the current generation of consumers.
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