The Swedish startup ChromaWay has been working on a land register project that essentially aims to make real estate more transparent through a blockchain.
The main goal of the project is to evaluate how blockchain technology can help solve some of the most pressing land management problems in South America.
ChromaWay is a blockchain technology company that has been developing and refining blockchain technology platforms that define the industry since 2014.
The project is closely linked to the IDB Lab, the innovation laboratory of the Interamerican Development Bank (IDB) Group and LAC-Chain, an alliance to promote the use of blockchain in Latin America and the Caribbean.
With the launch of the LAC PropertyChain initiative, the company now hopes to strengthen blockchain standards, governance and protocols for land transactions in Bolivia, Peru and Paraguay.
Inter-American Development Bank joins the project
In this context, the IDB or Inter-American Development Bank tested for the first time a blockchain for land registries in these three Latin American countries on a blockchain that would strengthen these standards.
The Inter-American Development Bank is the largest source of finance for development in Latin America and the Caribbean.
He was optimistic about the use of blockchain-associated technology for land registries, despite the high cost of blockchain projects with sometimes uncertain returns.
The organization worked with the blockchain startup ChromaWay and the Bolivian IT services company Jalasoft, which originally started with these countries, but with the aim of expanding further in South America.
The IDB hopes that the ChromaWay blockchain can help facilitate property recovery efforts in Latin American countries, which can cost between $ 50 million and $ 100 million per project.
The project funded by the IDB is one of the most extensive efforts to apply blockchain protocols to land registration and lending.
Phase one of the project
These projects typically involve the bank, which, when sold informally, gathers legal and technical information from farmers to establish an appropriate land ownership register.
In its initial phase, the bank invested USD 600,000 in the project through the IDB Lab research and development branch. Phase 1 examines how land records can be connected to the blockchain in a way that creates more trust and decides what type of blockchain to use.
ChromaWay would use various technologies related to blockchain
ChromaWay will apply several of its blockchain-related technologies to the project. These include Postchain, which the company describes as blockchain that is rooted in relational databases, and Rell, a programming language for blockchain and smart contracts. The bank also has the opportunity to implement the project on the public ChromomaWay blockchain Chromia.
In contrast to a pure blockchain, ChromaWay technology also includes database functions such as organizing and setting parameters for data displayed.
ChromaWay blockchain pioneers
ChromaWay was founded in 2014 to market Color Coins, the open source project founded and led by Alex Mizrahi, CTO of ChromaWay.
ChromaWay has created the first protocol to issue tokens on the Bitcoin network. They use it to issue fiat currencies in addition to LHV bank in 2014 and then do crowdfunding on the Funderbeam platform.
They have also developed an intelligent blockchain-validated independent contract platform that prioritizes data protection before data protection becomes an important issue in the blockchain.
According to Henrik Hjelte, CEO of ChromaWay, the collaboration with the IDB offers partner countries the opportunity to use mature, distributed accounting technologies that have been developed and used in other projects.