Transparency is something everyone craves when it comes to the land registry; the fraudulent cases regime is slowly getting to the dumps. It is because of the implementation of blockchain in land administration. The dissemination of the records across a distributed decentralized ledger is what blockchain owes to land administration. Let’s have a quick insight into the basic introduction of blockchain in land administration.
What is Blockchain in Land Administration and Land Registry!
Blockchain is a decentralized ledger that entails immutable and transparent record-keeping technology distributed across the network of nodes. Blockchain in land administration sweeps the use of manual work as it employs cryptographic and timestamping mechanisms to top up the details without any use of intermediaries.In land administration, blockchain technology can prove viable for both commercial and residential land registries. Blockchain solutions ensure the security and efficiency of transactions among stakeholders while eliminating the intermediary requirement. Due to diligence management in the land registry dilemma can save people from the chaos of being drowned in property loss.
Why is Blockchain Important For Land Registration?
It has been recorded evidently that in the bygone era, tampering of property records have been encountered; this practice destines property loss to the never-ending turbulence. This eventually flips the situation in a loss-drifting position; this is the time when blockchain technology steps in and decentralizes the conventional manual ledger system. Blockchain engulfed with Etyhereum and Smart Contracts, formerly known as Blockchain 2.0, is an efficient way to automate a particular industry transaction. Adaptation to disruptive technologies is a constant occurrence in the global economy that leads to the constant success of every real-world aspect.
To steer clear of the loopholes land registries face, blockchain-based real-estate and smart contracts solutions have stepped forward to provide real value generation opportunities for the land administration/real estate industry.
Land administration industry is dabbled up with large-scale transactions that include complex business agreements and contracts. The blockchain is accelerating the transformation of the land administration mafia (hostile property tracks) that have always been reliant on inefficient and archaic business and record-keeping operations.
The Promise of Immutable Ledger Blockchain!
How is your information secure on the interconnected network of nodes? How records remain unaltered and protected. Well, we have convened answers to your queries, and you’ll have an idea why blockchain is inevitable for your land registries.
- Unlike the obsolete ledger systems that are filled manually, in blockchain, the ownership information is stored using cryptography across the network of nodes. The cryptographic mechanism in blockchain renders the encoding of every asset that exists on a blockchain ledger with a unique identifier that allows for protection and tracking.
- Blockchain technology operates on the proof-of-concept and consensus method, if a new record like a property transaction is augmented to the blockchain. To cross-check the authenticity of the records, the information resonates along with the network. If the added record is a legitimate connection to other nodes within the network then the data is termed as verified. If the property transaction fails to make its way, then the record cannot be added.
- Blockchain isn’t influenced by the government bodies or national land registry as blockchain is an open network of data that can be accessed and added to by permissioned parties without the invasion of privacy by the intermediaries.
Blockchain Keeps an Eye on the Land-Registry!
Blockchain theoretically amassed all the information on properties, buyers, and sellers on an open-source online platform for example Ethereum. It streamlines many of the individuals and still largely manual steps that are currently used to establish the trust needed to facilitate property transactions. Blockchain includes smart contracts that verify the contract information with the land registry and perform various inspections on the property and buyer before the contract is signed.
In blockchain, confidentiality and immutability are built into the technology because the participants can access the ledger and land records in real-time.
Blockchain Implementation in Developing Countries Land Market!
Despite the promising functionality of blockchain technology, some developing countries still face difficulty implementing blockchain technology. One of the evolving caveats for the hasty introduction of blockchain in the land market is the government’s incapability of decision-making. The governments are destined to grapple with the land governance and administration challenges, along with the digitalisation of their registries, blockchain has still a long way to cover from being implemented at scale in the unprivileged countries.
The Worn Out Paper-Based Cadastres!
Perhaps, this is not the end to the dilemmas of implementation, the inputs to adorn the network would have to be accurate and digital. To ensure that data on the blockchain ledger cannot be altered, registry errors, fraud, and corruption should be eliminated before the blockchain is introduced. Most developing countries are likely to operate with the worn out incomplete paper-based cadastres which means the reflection of accuracy and ownership are skeptical, so digitalizing the existing records is a significant challenge. This turns out how blockchain implementation is a staggering pain for the developing countries. Many countries continue to struggle with land governance issues, which can’t be done at once as the ‘amping needs ample time’.
Another reason why developing countries are worried about joining the revolution venture is mainly because of the significant investment required in public and professional capacity to ensure that such an advanced technology can be adequately managed. Thus, it is pretty easy, from a pessimistic viewpoint, to conclude that blockchain cannot solve these issues.
How Blockchain in Land Administration Works?
A blockchain is a distributed crypto-graphical system that consistently stores an immutable, linear record of transactions among digital actors/nodes.By using blockchain technology, transactions can be tracked without relying on a central server or authority.
There are nodes (computers) adorning the network that operate on the blockchain system to execute transactions.
Blockchain is technically referred to as ‘Blocks and Hashes’ because the transaction data is stored in digital containers called ‘blocks’.
The first block created on the network is termed as the genesis block, and every block would be linked to a parent block (the preceding block) through unique digital fingerprints termed ‘hashes’.
Time-stamped hashes are placed at the top of each block of information to verify when the transactions were made. After creating a transaction, the nodes will verify and validate if it could be augmented in the system or not. The verification and validation process done along the network is termed a ‘consensus mechanism’.
Once the transactions are validated and accepted onto the blockchain system, the information in the blocks becomes resilient against tampering. Furthermore, all stakeholders are automatically aware of any supported purchase attempt, and thirdly, the rules and requirements for land transactions can be incorporated into smart contracts on the blockchain, ensuring accuracy and reducing the possibility of human error. When these terms and conditions are met, the contract is executed successfully. The blockchain transaction steps are as follows;
Adding a timestamp ensures that the transaction was created at a specific time.
In the network, transactions are mined by showing the computational proof of work done by the nodes.
Blockchain, an emerging technology, is making the world go fast and seamless; the transactions are done and dusted in just a matter of seconds. The governance needs to bring in the charisma and transformation for the land administration loopholes in developing countries. Blockchain is a revolutionary era itself, the regime that is constantly pacing up without being screwed up. The aforementioned reasons for using blockchain is that land administration can derive legitimization for land users such as small-scale farmers and their livelihoods.