Sweden is running tests to use blockchain in the country’s land registry system.
Once both buyer and seller comes to an agreement and a contract is drafted, real estate transactions will be placed on blockchain, said Magnus Kempe, – Director of Retail and Finance at Kairos Future – a consulting firm working on the project.
Blockchain is a distributed ledger that records live transactions across the globe on many computers simultaneously. Once a record is made, it is impossible to change.
All parties involved in the transaction will be able to monitor the progress of the deal and ensure the security of the transaction. “Digital documentation of property transfers and good technology will enable the confirmation for all parties in a real estate transaction [with] the highest level of security,” said Mats Snäll, Land Registry Development Director, Swedish Land Registry.
“In the first phase of the technology, we have tested the process with some banks,” Kempe told Reuters. “Now we’re on the second phase of the project where we will test in a full-sized environment.”
He believes the project could go live in the fall of this year, according to Reuters.
The trial is a joint effort with ChromaWay, a Swedish blockchain company, consulting firm Kairos Future and Telia, a telco provider.
The tech will allow individuals to view transactions from five roles: a buyer, seller, real estate agent, bank or as the land registry. Telia will provide an e-identification system to authenticate a participant’s identity.