Sweden is currently running tests to put their land registration system on a blockchain-based system – the technology behind the virtual currency bitcoin, according to the Swedish Land Registry.
The country is working on the project with Swedish blockchain firm ChromaWay, in addition to consultants Kairos Future, and telecoms firm Telia, the registry said in a statement.
They parties have developed a framework via a white paper and technical demonstration of how the registry would work using blockchain technology – which works by creating permanent public ledgers of transactions, which could replace clearing and settlement with a simple database.
“In the first phase of the technology, we have tested the process with some banks”, said Magnus Kempe, director of retail and finance at Kairos Future, according to an interview with news agency Reuters. “Now we’re on the second phase of the project where we will test in a full-sized environment”.
The ultimate goal is to put real estate transactions on blockchain when the buyer and seller agree a deal and a contract is made, said Kempe. After that, all parties such as brokers, lawyers, and the government, can track the deal’s progress.
Today, it takes months to complete a real estate deal in Sweden after the parties agree until the contract is eventually completed.
“Digital documentation of property transfers and good technology will enable the confirmation for all parties in a real estate transaction (with) the highest level of security”, said Mats Snäll, head of development of real estate registration at the Swedish Land Registry, adding “Being able to assign pending title deed is also something of value for all parties. Everyone will benefit from this”.
Larry Banks is a keen follower of technology and finance. He has worked for a variety of online publications, writing about a diverse range of topics including mobile networks, patents, and Internet video delivery technologies.