Real Estate is one of the largest markets/industries in the world. In 2018, Real Estate market transactions reached $1.75 trillion. It is important to note that behind each of these transactions there was a land registry paper trail.
The issue is that land registry systems, in most parts of the world, have also become such mundane administrative matter where it is still being performed manually. There are various challenges when it comes to land registry process. Historical records of lands and properties were recorded on paper documents. Although some first world countries have since welcomed digital records, many countries, such as Sri Lanka, still perform such activities on paper documents. There are cases where the paper title deeds were damaged or lost and registering the property again has become a cumbersome activity. It would then become extremely difficult to claim the ownership of the land. Therefore, it is safer to argue that manual paper-based land registry system is failing!
This is where the EFutures’ Blockchain-Powered Landy Registry prototype comes into the picture. While everyone agrees that land registries must go digital, the question is, why Blockchain? In a nutshell, Blockchain can provide highly secure records of ownership that cannot be manipulated. A Blockchain system is decentralized, therefore there is no one single point of entry for any cyber-attacks. Unlike traditional databases, Blockchain technology can record and maintain historical information at ease. The technology is also renowned for its abilities to provide secure environments for transactions between multiple parties.
FEATURES OF THE BLOCKCHAIN-POWERED LAND REGISTRY
Some of the main features of the system is mentioned above in the photo. In the current application, there are three main user types. They are Admin Users who are authorized to manage properties, owners, buyers and transaction, propery owners, who are allowed to update property details, manage documents and also to transfer properties and finally buyers, who have access to the property list and obtain available properties.
The system allows users to register themselves in the application while the authentication is carried out by a third-party service provider. Moreover, each user gets his/her Blockchain wallet in the application where the transactions are performed. The application not only contains existing properties and lands, but it also has the ability to create new properties and the function is restricted to authorized admin users. These properties are listed in a virtual map and colour-graded to identify properties that are available and properties that are already occupied. If a buyer desires to purchase certain property and the seller is willing to transfer the property, the transaction can be carried out seamlessly through a fast verification process and the propery is obtained by the buyer in no time. All the transaction activities are recorded and the history is maintained in a decentralized Blockchain system. Therefore, ownership verification is accurate and super fast while the data cannot be altered or damaged.
The application has plans to expand beyond the current set of users and authorities. The application will be open for financial institutions, tax authorities and conveyancers in the future. Financial institutions will gain access to the system and able to obtain relevant information. This will be helpful in an event of granting a housing loan or any financial aid for potential buyers of property. On the other hand, tax authorities will gain access to the system so they can monitor transactions in order to maintain proper taxable records. Finally, conveyancers will also gain access to the system in the future where they will be allowed to carry out various legal procedures.