Inter-American Development Bank (IADB), the largest source of development financing for Latin America and the Caribbean, has been bullish on blockchain for some time now, but they have finally announced a pilot with blockchain startup ChromaWay for land registries.
The project kicks off next month with the global organization embarking on a two-year project to put land registration and lending in Bolivia, Peru, and Paraguay on a blockchain. By integrating with ChromaWay and Bolivian IT services company Jalasoft they hope they can reduce the high costs and sometimes uncertain results from blockchain companies.
South America remains a mostly untapped hotbed of blockchain potential. From financial effects in struggling economies to this new way of streamlining land registries. For Eirivelthon Santos Lima, the project director of IADB’s environment, rural development, and disaster risk management division in La Paz, Bolivia, this project is a flagship.
“We need to work with our governments in Latin America to show them the potential of the technology,” said Lima. “The issue is very abstract for them, and the best way to teach them about this technology and get them interested is to show them how it works from scratch.”
By using the blockchain, provided by ChromaWay, the IADB is hopeful of a revamping of how land titles are currently done. It is reported that currently, it can cost $50 million to $100 million per project without the help of blockchain.
With the help of this new technology, the usual hassles of collecting the legal information of farmers and urbanites and technical information about properties can be eased thanks to the distributed ledger.
ChromaWay has a pretty established track record in this space, having tracked land titles in Sweden, and with similar projects running in Australia, Canada, and India.
“We’ve had up to 32 steps in the process to claim a property in Sweden, which could take up to three months between the buyer’s bank, seller’s bank, and real estate agents,” said ChromaWay chief executive Henrik Hjelte. “We digitize this process and shorten the time to online in a few minutes.”
ChromaWay will be rolling out a number of its technologies for this project. These include Postchain, which the firm describes as a blockchain rooted in relational databases, and Rell, a programming language for blockchain and smart contracts. The bank also has the option of deploying the project on ChromaWay’s public blockchain, known as Chromia.