The Application of Blockchain as a Distributed Ledger and Smart Contract for Property Registration

Abstract

Most of the current systems in the world work under centralized architecture, blockchain provides a decentralized solution for software development. Though centralization has many benefits such as regulation, control, privacy, quick decision making and implementation [1] it no longer is a viable solution for the ever-growing technology industry. Though systems that are decentralized exist such as torrent they have not been able to replace the centralized system due to the lack of authentication and security. Blockchain is a solution that mitigates those risks as it provides security and authentication for all the participants of the network.[2] The current property registration for residential and commercial developments is a centralized system where majority of the work is done on a pen and paper-based system. The current system involves a lot of vulnerabilities and people use it to cheat others and the government. Blockchain is used to provide a potential solution for many challenges of land registration. The system involves noting down transactions into a hard copy ledger which is the only record that a transaction has occurred. We aim to evaluate the current registration system and assess the suitability of blockchain to replace the current centralized system. Most developing countries don't have a proper working system of tracking the property rights, the one they have is too fragile. For instance, a large earthquake can destroy the municipal buildings that store documents regarding the ownership of the properties.