Blockchain-based Property Ownership Recording System

Buying land in Palestine, especially outside the cities, is problematic. In the cities, it is very expensive. Outside the cities, there are few title deeds or evidence of legal ownership, which is a factor that can be utilized by Israeli settlers seizing property on the West Bank. While Palestinians may like to own property, the cities have priced them out, and the outer regions are risky. To address the risk, blockchain technology can be used to verify ownership and the history of ownership so that the threat of settlers seizing the property at a future date is reduced.
What is blockchain technology? Blockchain is a technological revolutionary data chain that essentially tells the history of any asset to which it is attached. It is used in everything from smart contracts to cryptocurrencies like Bitcoin. As Alex Mizrahi notes, “For any kind of a high value property (real estate, cars, art) it is important to have accurate records which identify the current owner and provide a proof that he is indeed the owner. These records can be used to protect owners’ rights (e.g. in case of theft), resolve disputes, make sure ownership is correctly transferred to a new owner after sale, and prevent sale fraud.” In other words, blockchain-based property registry is the ultimate title deed: it can never be lost, counterfeited, stolen or changed.
Blockchain can be used to develop a smart contract that will not only enable the transfer of titles but will also enable a payment method so that the actual sale and transfer of payment is recorded in the blockchain’s history too. A blockchain-based property ownership recording system would act as a ledger that contains all the relevant information pertaining to property ownership, property history, payment, settlement, and so on.
How does blockchain work? Blockchain works autonomously: that means it is not dependent upon a third party or a middle man to oversee the transaction process. The technology records everything and secures it for posterity. Essentially, it consists of lines of computer code within a program that runs blockchain. The blockchain ledger acts as a digital file which records all transactions on the blockchain. Everytime a new transaction is made, it is added to the chain—just like pages in a book. A new owner of property becomes the next chapter in that property’s story. Whoever holds the blockchain, holds the title—and the special thing about this is that the blockchain is actually distributed all over the world through the network of personal computers and servers that store and share data. Each computer is a node in the blockchain network and holds a copy of the ledger. Payments and titles can be transferred via this network, and by using the blockchain program, the data is etched into the chain so that all know a transaction has been completed. It is public, secure, and free from manipulation.
A business that develops a blockchain-based property ownership recording system for real estate and land ownership in Palestine would essentially help to address one of the major risks of buying property in the region: the risk of it being stolen by settlers who refuse to recognize ownership because of a lack of legal documents. With the use of blockchain technology, that refusal is no longer possible: the security and authenticity of blockchain is recognized by people from all countries around the world. In fact, many countries and businesses (like Microsoft with Ethereum or Russia with its own development of a blockchain-based currency) are turning to blockchain to prevent fraud and mismanagement. In Palestine, a company that can harness blockchain to help owners assert their rights would be a great boon for the people of the country.
Works Cited
Mizrahi, Alex. “A Blockchain-based Property Ownership Recording System.”
https://chromaway.com/papers/A-blockchain-based-property-registry.pdf