The blockchain technology on which virtual currencies such as Bitcoin (BTC) are based on could transform how transactions involving real estate properties are conducted and recorded according to experts. Lantm?teriet , Sweden?s authority tasked with the mapping and registration of land and which is close to four hundred years old, might emerge as a pioneer with regards to government agencies testing the use of the blockchain technology in the property sector.
In the next couple of months the Lantmateriet is expected to trial one such transaction and has shortlisted pioneers who are interested in buying or selling land and real estate properties using the blockchain technology. The government agency has partnered with Telia Co, a telecoms firm; ChromaWay AB, a blockchain technology company and Kairos Future, a consulting firm in this effort.
?From the technology point of view, we are quite ready,? Mats Sn?ll, the chief digital officer of Lantm?teriet, said.
Speed and security
According to proponents of the technology the recording and transferring of titles would get faster and more efficient when blockchain is used. This could see the period of transactions falling from months to days or hours in some cases.
Additionally such transactions would be secure and immune from fraud. This is because in the data structure of blockchain the creation and sharing of transactions takes place in a computer network and every transaction is assigned a unique record which is categorized into a block. When the need arises to make additions or changes, verification is required from other network participants. This makes it extremely difficult to make alterations on the block.
Thus, similar to the way cryptocurrencies employ the blockchain in recording the ownership of a digital coin, or when the ownership changes, blockchain technology could also be used in recording who holds the title to a certain property. Across the globe many governments are still using paper records and this is not only a cumbersome process but is also prone to fraud.
Some of the hurdles that are expected to be faced in Sweden with regards to the use of blockchain technology in property deals include the fact that digital signatures are not accepted by the law in the Scandinavian country when it comes to the registration of property sales or purchases.
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