There is hardly a person who hasn’t heard about blockchain at least something in the last two years. Even people very far from the IT-industry know that there are some distributed ledgers… But how they are relevant to real life? — you ask. Here we are telling you why it is so useful in finance.
Registering transactions on blockchain
Real estate, cars or intellectual property transactions — all these can be recorded in the distributed ledger. The advantages are obvious:
* Transparency of transactions and protection against forgery;
*Time-saving for registration operations;
*Cost reduction in paperwork flow and staff;
*Quick access to information on registered rights.
Today, there is already a lot of experience in this area. For instance, in Georgia. It is one of the first countries to use blockchain to register real estate deals. Transactions are registered via a special application developed by Bitfury. Similarly, Sweden and Estonia use the blockchain to register transactions. In Estonia, via the blockchain, you can register a marriage and obtain a birth certificate as well.
Another good example is in Ghana. The owners of real estate and other natural resources faced with a property grabbing. Bitland project created by local resident Narigamba Mvinsubo proposed a platform for registering transactions. Bitland employees met with property owners and recorded property rights into the blockchain. The platform not only stores information about property rights. It also allows users to make transactions via smart contracts.
USA and Russia also launched pilot projects of registering transactions on blockchain.
However, there are some sufficient difficulties. Just imagine — you have to digitize all registered objects, as well as their owners, and input all the information in the ledger. In addition, the platform should have a huge capacity for storing transactions. As well as super-reliable protection against hackers.