Blockchain-based Land Registration: Possibilities and Challenges

Abstract

In recent decades land registration systems operating in Europe and worldwide have been subject to modernisation processes consisting in implementation of information and communication technologies. Such reforms have gradually led to facilitating access to land information, improving effectiveness of land registration proceedings and even introducing possibilities to dispose of the ownership of land electronically by developing electronic conveyancing mechanisms. Another innovative concept much discussed nowadays is the application of blockchain technology in the land registration sector. This solution is currently being tested in a number of countries.Distributed ledger technology underlying blockchain is expected to revolutionise land registration by offering a secure architecture to store land transactions with the use of cryptographic protocol. This shall bring advantages of increased trust and processing efficiency as well as reduction of costs. However, the above idea raises concerns given that, under the assumptions of the “original” blockchain model, transactions are irreversible and are carried out without intermediaries, which means the lack of any external control and independent verification of the transactions to be recorded.The article examines potential benefits and risks of automatisation of land transactions as well as practical experiences of selected countries in implementing blockchain in the area of land registration. On this basis, an assessment will be made as to whether blockchain-based registration could indeed replace the existing methodology of registering rights to land.