How Blockchain Enables Digitization of the Land Registry System?

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Written by
Shivani Tripathi
Published on
November 7, 2022

The land is a powerful tangible asset and, in some essence, an identity of the owner's nationality. With power comes responsibility and increased interest. Due to the limited traceability of the past and improper land records, certain parties have started misusing the ambiguity. This situation, in turn, creates a lot of disputes. 

If you try to understand the root cause behind most land-related disputes, it is inefficient land registry management. Conventional land records and data management methods pose challenges to establishing strict land governance policies due to a lack of reliable data and forgeries. 

Can Digitization of the Land Registry System Be the Way Forward?

Land Registry System

Digitization of land records might solve the most pressing issue with the traditional land registry system, i.e., security concerns and malpractice. Through digitization, land records will be online and secured through blockchain technology, leaving no room for fraudulent activities. 

Digitization can happen in multiple ways. One way is to assign a unique identification number to every land parcel through a survey and Geographic Information Systems (GIS). Blockchain will act as the backbone of this transformation. Let us see how.

5 Blockchain Use Cases in Land Registry Systems

Blockchain is a transparent and immutable register for tangible and intangible assets. Here are the 5 significant ways in which blockchain is being used in the digitization of land registry systems.

1. Smart Contracts That Enable Transparency 

Tracking the list of owners and the transactions associated with the transfer of land titles is a big challenge. In addition to this, the whole process of raising funds and registering the transaction gets delayed invariably due to inefficient administrative practices.

Smart contracts enabled using blockchain technology can significantly contribute to overcoming these issues. A decentralized digital ID is created for the buyer and seller in the blockchain-based land registry system.

Through this, verified transactions will be automated, and smart contracts will establish the new ownership data. The corresponding transaction will get stored in the blockchain. This way, land records cannot be hampered. The entire process also becomes simple and transparent.

2. Blockchain-Based Encryption for Enhanced Security

Blockchain technology encrypts the data of the transactions and the people involved by providing private keys. Such encryption will protect the identity of the users by blocking third parties from accessing secure data.

Multiple-signature wallets can be enabled to deal with the risk of losing one or two private keys.

3. Acceleration of the Registration Process

Blockchain enables simple and easy ways of recording a transfer in ownership. Digital titles can be created using blockchain land record platforms.

This will eliminate the need for third-party verification and hence accelerate the land registration process.

4. Avoid Fraud Cases Through Verification of Ownership Changes

Traditional land title documents can be forged using certain editing tools. However, once the land titles are uploaded to the blockchain land registry system, the associated persons can sign and access the document using their private key.

Another person willing to buy the land can verify the encumbrance and other details in the same blockchain network. 

Blockchain-based land registry systems can thus offer a seamless platform for proof of ownership, existence, transaction, and exchange.

5. Resolving Disputes Through Document Validation

Blockchain is an immutable register that has all the information carved into stone.

No information or transaction can go unnoticed or covered up. Hence when any dispute arises, the land registry document can be verified and checked for authenticity. 

If any modifications have been made to the signed document, the hash generated after uploading for validation and during the time of signing will differ. This way, disputes can be easily resolved through blockchain.

What Will Change Post Digitization of the Land Registry System

Digitization of the land registry system will lead to an enormous transformation in the real estate industry.

For a long period, land-related disputes have created a false perception that intangible assets are inherently problematic. However, the framework and policies governing land-related issues are inadequate. 

The implementation of blockchain technologies to overcome these issues has its own set of challenges. However, the benefits are too large to be ignored. The following changes will be visible post such a transformation:

  • Clear ownership titles.
  • Ease of doing business in the real estate sector, particularly land deals.
  • A single window system for verification and maintenance.
  • Transparency in land record management


The disputes around unclear land titles and their costs create a lag in the real estate markets. Hence, the development of a digital and transparent system will accelerate the growth in the real estate sector. It will also facilitate easier land acquisition, thereby motivating more infrastructure and smart city projects. 

Blockchain can revolutionize the real estate sector through efficient land registry systems and digital land records. Despite certain limitations, blockchain is the best alternative to fight against land-related disputes.  

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