Title Token for Blockchain Estate Registry, Part 2

Saturday 8 August 2020, 8:08 PM AEST - 5 days ago

Title token is a record of ownership similar to the one made in a traditional estate registry. This concept is designed as an alternative to security tokens and various financial crypto instruments. The title token is not backed with real property; this is the record that directly certifies the property right — the same as paper title deeds, or certificate of ownership, etc. It is a digital form of property record and the primary source of knowledge about property rights, which means no paper form is needed.

The title token can represent any legal rights: immovable property (land and buildings), movable (car, boats, aircraft, etc.), corporate rights (shares), and various property rights and derivatives (mortgage, debts and securities). Any legal right, and as you will see later, can be used to certify legal facts and events.

What about official registries?

You can create tokens that represent a flock of sheep because it does not require official registration. But you cannot just create a token of your land rights (car, boat, etc.). It will be a toy token with no connection with your legal rights because they live in the official state-owned registries. In most countries, registries, especially for land rights, are mandatory, and the regulations do not provide discretion in choosing one or another.

To enable blockchain technology to replace the traditional registries, the state machine requires reforms, which are unlikely to happen in the nearest future. What is more feasible is the recognition of alternative registries, so citizens themselves may choose. Those who are happy with traditional registries and bureaucracy can stay with these, but those who want to use the full power of blockchain, smart contracts and decentralized applications can transfer their records from the centralized database to any ledger.

Now, states monopolistically own and run public registries. Alternative registries can be enabled through new regulations, technical standards and government supervision to ensure compliance. But the authorities do not need to physically maintain such alternative ledgers and data centers for them to protect records. Blockchain technology ensures an unprecedented level of protection for records from corruption. Acts of public bodies performed on-chain will guarantee their accountability. Undoubtedly, it is better for the investment climate for any worlds region where it will be introduced.

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