Bringing a More Secure and Efficient Land Registry with Blockchain

There are three major problems associated with land registration at the moment: time delays, fraud, and human error.

First, it can take an extremely long time for title registrations to occur. Whether this is due to information being backed up, or just plain laziness, it is clear that land registration currently works on an outdated system. This process can also be timely due to legal ties. For example, what if someone is refusing to move from the land? Who is responsible for moving this individual? The seller? The buyer? A government agency?

The second most prevalent problem deals with fraud. While it exists in all countries around the globe, in some parts of the world it’s extremely relevant. For instance, it’s very common in Brazil for people to take land either through bribery, intimidation, or other illegal practices. Once the land is taken over, they would build farms or other “good” real estate, and then register the land as their own through Brazil’s outdated land registry system.

The third ailment to land registry systems is human error. Many of title registration systems are paper-based and rely purely on the implementation of human action. This means that the whole process is prone to failure, as humans are not as sophisticated as their digital counterparts. Blockchain technology has the ability to rectify all of these problems.

What Blockchain Can Bring to Land Registry

As explained in the prior paragraph, land registry is often prone to three main problems. Blockchain technology can significantly enhance the efficiency of land registry systems. Through automation provided through smart contracts, and without the need for government intervention, land registration can be much more streamlined. Smart contracts work in an if A then B formula. They are a product of the Ethereum blockchain and have mainly been used throughout various industries to automate transactions whether they are tied to data or a monetary system. Changes to blockchain are made in nearly real time. This would drastically shorten the weekly and sometimes monthly time delay associated with the land registry system. Blockchain also has the ability to limit fraud by giving everyone access to the blockchain. With everything available to be seen there is no means in which fraud can be conducted. Also, blockchains are immutable unless a majority consensus is reached. This means all information in the chain is considered true and therefore trustworthy. Blockchain greatly increases transparency which has the ability to limit and stop fraud altogether. Human error greatly adds to the time delay associated with land registry systems. These outdated systems are prone to human error because they are mainly paper-based. A blockchain-based system would be streamlined through automation of contracts, and error would be reduced as the system itself would not function purely off of human interaction. Blockchain also has the ability to save governments vast amounts of money as they are purely digital and do not fully rely on paper-based systems. Of course some functions can only be done through paper, however, the entire land registration as a whole will be quicker and more efficient with blockchain.

Blockchain Land Registry Examples Currently in Use

Corda is a blockchain system currently being utilized in the UK for their “Digital Steet” program, according to CBR. The overall task of the Digital Street program is to enhance current land registry systems in the region through digitalization. The goal is to digitalize at least 95% of all of the UK’s land registry systems by 2022. Ultimately the idea is to provide a minimum of a three day turn around by utilizing automation associated with the Corda blockchain. Corda has developed a wide variety of blockchain solutions, their land registry service is currently being developed throughout multiple industries throughout the globe and is expected to become the standard in the UK.

Natural Disasters and Land Registry in India

After the 2010 earthquake in Haiti, many were eager to get the small country back on its feet, however, there was one main problem standing in the way. Many portions of land were not backed up by a registry, this meant that people were fighting over land, and there was no way of telling what portions belonged to the large numbers of people fighting over them. This is a huge problem for many third world or developing countries. It is also a major problem in remote parts of India. Land registration is a colonial idea and is often hard to implement in various places as there is only a written history of who resided on said lands. Blockchain can be used to digitalize these cultural systems. Land that is purchased on the blockchain is kept safe due to its distributed nature. As long as the blockchain is intact and nodes are distributed evenly, there should be no signs of fraud or foul play. Ideally, if managed correctly, blockchains should be able to determine who owns what many years into the future. Due to high illiteracy rates in India and other developing countries land is often stolen from people who are unaware that registration was even necessary in the first place. Of course, this has gone on in history for decades; colonialism at its finest. However, with blockchain, it is possible to go into these underdeveloped regions and ensure lands stay in the right hands. Blockchain also uses cryptography to provide extensive security systems to keep personal information safe. These same systems could be used to protect the identities of land owners. Currently blockchain is highly valued in teh financial sector due to its extensive security measures. It is practically impossible to hack into a blockchain system, as the negative actor would need to take control of more than 50 percent of the blockchain. As the nodes are dispersed, usually on an international scale, it is practically impossible to gain the 50 percent majority.

Bringing about a Better Land Registry in Brazil with Blockchain

In Brazil, vast amounts of rainforest are being destroyed by nefarious actors. These “ghosts” as they are known in the region are constantly destroying vast amounts of rainforest for uses associated with paper production, or various other goods. This illegal system happens purely because Brazil at the moment does not have the proper land registry system in place. With blockchain, a more transparent system could be developed which would benefit everyone in Brazil as a whole

Problems Blockchain May Face

The first problem associated with blockchain technology is that it is still too new. Many of the countries which can benefit from its development for land registry affairs don’t even have computers to run it. It is estimated that in many African countries, 90% of the land is not registered. This is mainly due to a lack of technology and of course a difference in culture. Land ownership was popularized by Western societies and has been used by such nations to acquire resources that did not belong to them, however, that is a different story. Many of the nations that would benefit from blockchain adoption simply have no need for it or do not want it. Imagine a farmer uploading his land registry information on the blockchain, it is comical to picture. However, it will take some outside force in order for these blockchain land registries to be developed in third world, or developing countries. Blockchain has the ability to provide a fairer land management system. With blockchain fraud, intimidation, bribery and all the negative ways to acquire and steal land will eventually be gone from land acquisition. This will prove beneficial in many regions, especially in places like Brazil that currently suffer from nefarious actors.

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