Several stakeholders do participate in this process or value chain where disparate data can lead to colossal value loss. The stakeholders include the current owner or seller, the previous owner, potential buyer, local authorities’ institutions, and the government. However, some stakeholders can be wearing different hats for different entities—for example, government-owned land. Land registry in every country is always responsible for reconciling disparate data.
Conflict matters are widespread and, in most cases, will go to courts. There is great value in maintaining a full land ownership record. This is considered public information that can produce great transparency to resolve disputes and combating opaque financial transactions.
Essential factors that need to consider:
You can use the existing blockchains to register ownership of lands. For instance, cryptocurrency transactions can comprise of land details. There is, however, a value in getting private implementation for several reasons.
The transaction value can be significantly more than the planned use in the cryptocurrencies available.
The land registry management process has several specialized processes that are best served through features that are custom made in the blockchain. For instance, information inheritance can readily be embedded in the blockchain stack. The stack will always hold information concerning your land details such as location, area, license rights, etc.
Payments can always be made through an intermediary particular crypto purpose that offers transactions liquidity. The buyer will purchase crypto from the exchange and make payment to the owner. The owner will, after that, sell the currency back on the exchange to be available for the next buyer.
Expectations will have a standardized implementation and will allow for different regions or land types customization. The design will have to be fail-proof from potential errors and be robust enough to fight off any aggressive attacks from the hackers.
There should be significant effort and investment to come up with such a community. The solution will need great customization to fulfill all the potential requirements. There should also be an early stage implementation using the basic functionalities which copy the available centralized registry on the blockchain. Later developments can be done with the developers’ community continuing to grow.
The majority of the stakeholders are incentivized to run nodes for the network. Apart from the government bodies, real estate agents, local councils, and individuals will require an interest in the network. However, they will always get privileged access to information against their contribution.
In addition to financial institutions’ integration to make payments possible, there is also a need to integrate with the public authority system to offer formal legal ownership proof.
The application will significantly reduce the government bodies’ roles and do away with bureaucracy. The complete process of purchasing and registering land can be achieved with real estate agents or sellers alone.
The product will, however, require a tremendous mindset change for acceptance. Ownership proof is in the governments’ safe hands. It will require some considerable effort to convince the public that information can be entrusted to a distributed network without any centralized control.
Blockchain technology stands out in several ways when applied to land titles and property. For instance, in the blockchain-based ledger, records are usually time-stamped, just like the records’ subsequent changes. This will allow individuals interested in a particular property to have a look and verify the date of the past transaction on their mobile devices.
Blockchain data can be made public or private. For example, the real estate transaction details are placed on a blockchain private network run by computers. To verify certificate authenticity, data can always be changed into a cryptographic “hash,” which is made public on the blockchain.