After years of discussions, the Inter-American Development Bank is testing for the first time a chain of blocks for land registers.
Next month, the global organization will embark on a two-year project to place land registers and loans in three Latin American countries on a chain of channels.
The IDB, the largest source of development finance in Latin America and the Caribbean, has long been optimistic about the blockchain for land registers, despite the high costs of blockchain projects with sometimes uncertain returns.
The organization is collaborating with the start-up blockchain ChromaWay and the Bolivian IT services company Jalasoft to test the technology in Bolivia, Peru and Paraguay, with the aim of extending the test to the next year. other regions of South America.
"We need to work with our Latin American governments to show them the potential of technology," said Eirivelthon Santos Lima, project director at the Division of Environment, Rural Development and Disaster Risk Management. IDB in La Paz, Bolivia. "The question is very abstract to them and the best way to teach them this technology and to interest them is to show them how it works from scratch."
The IADB hopes that the ChromaWay blockchain will help ease efforts to restore proper property titles in Latin American countries, which can cost between $ 50 and $ 100 million per project, added Lima.
These projects usually involve the bank collecting legal information about farmers and urban dwellers, as well as technical property information, to create an appropriate register of land ownership when land is sold informally.
Thanks to its research and development arm, IDB Lab, the bank is investing $ 600,000 in the project. The first phase will explore how to connect land registries to the blockchain so as to create more confidence, as well as the type of blockchain to use.
The bank will build on the standards of blockchain technology developed by IDB Lab and LAC-ChaiN, an alliance to promote the use of the blockchain in Latin America and in Latin America. Caribbean. It will also use the World Wide Web Consortium (WC3) specification for verifiable claims and decentralized identifiers.
The JID chose ChromaWay because it noticed the work of the start-up in property title monitoring in Sweden and similar projects in Australia, Canada and India.
"We had up to 32 steps in the process of claiming a property in Sweden, which can take up to three months between the bank's buyer, the seller's bank. and real estate agents, "said Henrik Hjelte, CEO of ChromaWay. "We are digitizing this process and reducing the time to go online in minutes."
ChromaWay will apply many of its blockchain technologies to the project. This includes Postchain, which the company describes as a blockchain rooted in relational databases, and Rell, a programming language for blockchain and smart contracts. The bank also has the opportunity to deploy the project on ChromaWay's public blockchain, called Chromia.
Unlike a pure blockchain, ChromaWay's technology also includes database features such as organizing and setting parameters on the data represented, the company said.
"It's basically a root based on a mathematical method to represent the data," said Hjelte. "In this way, you can not have the same social security number for more than one person and you can not sell the same good twice."
IADB image by Shutterstock