Global Digital Transformation of lockchain and Land Registry

Global Digital Transformation of lockchain and Land Registry

Author: Luyao Ma

Shaanxi Provincial Land Engineering Construction Group Land Survey Planning and Design Institute Co., Ltd.

Abstract

Blockchain and land registry have been gaining traction in digital transformation strategies. This paper concludes with recommendations in policy addressing local networks, institutional reform and cost/benefit analyses. The theoretical implications of the paper contribute to discussions on leapfrogging in the context of digital transformation and policy.

Key words: Blockchain, Land Registry, Digital Transformation

1. Introduction

Property rights are a stepping stone in international development theory. The World Bank as well as other key international organizations have repeatedly underlined the need for clear property rights, improving governance, and allowing for an improved record and paving the way for the private sector. The most elementary form of property rights are land rights. Biasolo noted three trends in blockchain for land rights: 1. Public Registries, facilitating the recordkeeping of relevant transactions. 2. Tokenized trading: Property is tokenized and traded. 3. Specific development project ICOs, financing projects through cryptocurrencies.

Until now, blockchain-based use cases have been used in the creation of tradeable tokens and cryptocurrencies. With the characteristics described above, the technology also offers the possibility to improve traceability of processes. Thus, the technology can also be found in supply chain tracking, as a recent paper by the WTO describes and offers key strategic advantages. The technical characteristics of blockchain and DLT prepare the technology for wide scale adoption in increasing transparency and improving governance. The use cases of blockchain have greatly developed since the inception of bitcoin ten years ago.

2. Georgia

Georgia entered the blockchain-based property rights market in 2016, when Georgia ́s National Agency of Public Registry signed a Memorandum of Understanding with Bitfury, a large, blockchain implementation company. A recent analysis of the projects draws two conclusions (Shang & Price, 2019), the authors underlined the importance of the quality of data as well as the importance of broad engagement with a target group. In 2018, Georgia registered over 1.5 million land registry on their blockchain-based system.

3. Conclusion

3.1 Inclusion and Multi-stakeholder Engagement

Broad, multi-stakeholder engagement is key. Networks, meet-ups, building expertise etc. is important to guarantee the implementation and promulgation of the technology. A multipronged approach with a multiplicity of actors facilitates the adoption of the technology.

3.2 Technology Highlighting Institutional Weaknesses and Leapfrogging

As the experience shows, the implementation of a blockchain-based project is usually nestled in a broader set of reform. The need for a concerted strategy, including all necessary stakeholders is paramount for the success of the project. This means that the technological product cannot resolve a pre-existing institutional malaise, including lack of transparency, corruption and lacking accountability. In contrary, without the institutional tools in place, technological transformation will not deliver on the hopes invested. Hence, the importance of improved governance a priori to the implementation process and thus questioning assumptions of leapfrogging through digital transformation.

4. References

Shang, Q. & Price, A., 2019. A BLOCKCHAIN BASED LAND TITLING PROJECT IN THE REPUBLIC OF GEORGIA. innovations / Blockchain for Global Development, 12(3/4), pp. 72-78.

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