Blockchain technology has been utilized across several industries that exist today. While the tech is a decade old, the true growth and expansion of the technology have only really happened over the last few years.
Business, banks, companies, and corporations across the world have all exploited the tech in some way. Recently, blockchain has found a lot of recognition in the land registration systems across the globe
One of the leading blockchain companies in this market is Chromaway, a company with an exceptional track record in the industry. The company has a reputation for having tracked land titles in Sweden, and with similar projects running in Australia, Canada, and India.
The company is now collaborating with LAC-Chain, an organization working to promote the use of blockchain tech, to develop a blockchain-powered platform for land registry and titling.
The Latin America and Caribbean blockchain promoter (LAC-Chain), has contracted Swedish startup ChromaWay to develop a blockchain-based land titling and registry platform in Bolivia, Peru, and Paraguay.
With the launch of the LAC “PropertyChain Initiative”, the conglomerate aims to build up blockchain standards, governance, and procedures for land registration in the targeted countries.
The region has several native communities that are dependent on natural resources for their livelihood. As per a recent report, 76% of the population in Peru own their own home, although 44% lack a clear title for their property.
Meanwhile, According to the World Bank’s “Ease of doing Business Ranking”, Bolivia has some of the worst rates of property registration, ranking 148 out of 180 countries in this category.
Despite various systems in place by the countries in the project countries, indigenous people still face obstacles for adequate recognition of their land rights, along with prolonged times for registering property.
Blockchain is the Answer
The blockchain initiative kick-started by LAC-Chain will apply Distributed Ledger tech (DLT) to land registration in both rural and urban areas to reduce the cost, time, and complexity of land registration.
The project is largely financed by the Inter-American Development Bank (IDB), the single largest source of development financing in Latin America and the Caribbean. The PropertyChain initiative will initially focus on Peru, with expendability to Bolivia and Paraguay.
An application and blockchain network will be deployed for testing later in 2020. To meet the required output, ChromaWay will also partner with a Bolivian based regional software integrator company, Jalasoft.
How this Works
The tech solutions project will utilize smart contracts with secure workflow stored on distributed ledger nodes hosted by banks, government agencies, and 3rd party providers.
The project will be powered by digital tokens that will simulate the use of fiat currency in paying surveys and other service providers.
The benefits of these components will be to strengthen data security and improve transparency and auditability to the land sector.
This initiative will also serve to reduce administrative costs and time, and expanding adoption of land formalization by being accessible of a simple user interface app.