Blockchain seems to be the missing piece in a lot of sectors that would improve transparency speed and data security. According to IBM, Blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or intangible (intellectual property, patents, copyrights, branding). Blockchain technology is a distributed database that is best recognized for keeping and safeguarding a decentralized record on of transactions.
A blockchain can act as a database, storing information in a digital format. The beautiful part is that blockchain novelty ensures the title and security of a data record while also generating trust without the requirement for a trusted third party.
In addition, a consensus algorithm determines the decision-making process on the blockchain.
The first-ever type of consensus used on the blockchain by miners to solve a complex mathematical problem linking an old block to a new block was Proof of work. The successful miner earns a reward, and the solution is broader to the entire network.
The second most popular consensus algorithm that validators validate traction and vote on the major decisions is proof of stake. The validators are entities who lock up set amounts of a particular cryptocurrency. They also get rewarded in that cryptocurrency for validating transactions
Challenges with the current systems of the property registration system
The challenges include:
• Low level of registration
• Inefficient registration process (Expensive and time-consuming processes)
• Last reverse far government
• Corruption- double registration, survey
• Delay updating record an update at all
• Centralized data system the risk of mutilation alteration and forgery of the land register.
• Distrust of title from certain areas
He also mentioned some limitations which include:
• the accuracy of data being entered into the system.
• the ability of the system to facilitate data preservation
• pre-existing institutional and legal pillars
• the digital divide across communities.
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Blockchain provides a potential solution for many of the challenges of land registration. Its advent has brought some level of relief as it has helped to curb some of the issues associated with the registration of Land.
The conventional Land registries are usually plagued with a lot of issues such as loss of documents, fraud, delay in the Land record management process, replication of documents, tampering, destruction, minimal transparency, lack of traceability, and human error and forgery.
Why is Blockchain-Land Registry important?
Here are the reasons why a blockchain land registry is important:
- It gives real-time visibility of the status of the property
- It reduces human error such as double allocations
- Digital deed eliminated the need to store physical archives
- It increases trust in the real estate transactions
- It offers a 25% increase in Land/property investment
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SOURCE: LAW PAVILLION