Blockchain technology is becoming a popular technology for its obvious features. Whereas in a recent decision the NASDAQ managing company has decided to use the technology for IPO listing and better management of the stock market, Honduras, one of the poorest countries in the Americas, too has decided to embrace it for its land records.
The government of the country says that it has agreed to use a Texas-based company to build a permanent and secure land title record system. The company will use blockchain, the underlying technology behind Bitcoin. The announcement says that Factom, a U.S. blockchain technology company based in Austin, Texas, will provide the service to the government.
The information regarding the announcement came from the firm’s president, Peter Kirby who said that the company is doing the project with Epigraph, a title software company that uses blockchain technology, also based in Austin. However, his company says that it would not reveal the cost of the project.
With the latest decision to embrace blockchain technology Honduras would become only the second government to use it. This according to market observers increases transparency in a transaction, to manage government data, after reports that the Isle of Man would test a government-run blockchain project.
Elaborating the point, Kirby said that in the past, Honduras has struggled with land title fraud and the country’s database was basically hacked. Due to lack of transparency bureaucrats could get in there and they could get themselves beachfront properties. Honduras is known for huge corruption for these obvious weaknesses in the land keeping records.
Blockchain Technology can Help the Government Keep Land Records Transparently
However, Kirby says that by building an immutable title record, backed by blockchain, Honduras can leapfrog systems built in the developed world. According to him this would allow for more secure mortgages, contracts, and mineral rights. Additionally, this also gives owners of the nearly 60 percent of undocumented land, an incentive to register their property officially.
Kirby further added that Factom started negotiations in January and as a part of the pilot project they are willing to complete this by the end of the year. They aim to eventually put all of the government’s land titles on the blockchain to bring transparency and help the country of 8 million people who are reeling under corruption.
To contact the reporter of this story: Deepak Tiwari at email@example.com