People increasingly fulfill their dream of owning their own home. It can also be an investment. The return rate is nowadays much higher than with a bank deposit. In addition to the purchase price the purchase of a property comes with additional costs amounting 10 % of the original price in Germany. These costs consist of property transfer tax and fees for notary and land register entry.

The task of a notary is to certify any legal transactions. A sales contract for land is only valid after notarial certification. The notary is protecting both purchase parties and resolves the trust issue.

But this trust issue can be overcome with blockchain technology. One characteristic of the blockchain is the impossibility to manipulate transactions and falsify data. In this sense, blockchain technology can replace the notarial certification and the land register.

Every land register entry can be safe in a blockchain network. It is also possible to safe purchase agreements in the network. All participants of the network know that the transaction has taken place. The transaction fee on the blockchain is much lower than the original fees. There are some blockchain start-ups out there that offer document certification services, for example https://stampd.io/. Countries like Honduras and Sweden already abrogated ordinary property registries and are working with blockchain technology now.

Overall, blockchain-based property registry has the potential to reduce bureaucracy and criminal activities.

The technology is in place and other countries are setting an example. Let’s GO!