Skip to content

Title Token for Registering Real Estate in Blockchain, Part 3

August 8, 2020

The advantage of the cross-block protocol (cross-block protocols) for public records is that you can connect any number of existing record books in an ecosystem and not have to update the logs of such blockchains. In simple terms, the protocol It works as a token aggregator over blockchains. Conceptually, the protocol comprises two main elements:

  • Because of the format requirements for an entry, the user’s computer can automatically collect records from multiple books in one package by knowing the standard of a record.
  • The hook, which is the algorithm that scans ledger blocks and extracts recognized records (if they match the format) in an overlapping database.

The resulting representation of collected tokens is a logical superstructure in many blockchains: the public recording. It is decentralized as the same algorithms are used independently for each node. So, a government agency, for example, It is not the sole owner of a public database, it literally lives on each user’s computer in the cross-blockchain database.

Cross-blockchain database

Title Token for Registering Real Estate in Blockchain, Part 3Title Token for Registering Real Estate in Blockchain, Part 3

Since we discussed the log level in Part 2, We have a governance component to address legal issues and enforce legal decisions. The subsystem works as a series of Patches and filters for user records. Although formally it corresponds to the format The user’s record may have been leaked because the jurisdiction recognizes it as illegal or void.

The public registration is based on the cross-blockchain protocol is in line with three basic principles for decentralization:

  • Technological pluralism. Blockchain should be one of the technologies, and relying on it is just as wrong as using centralized server systems. There must be a multitude of technologies at the same time, because competition leads to progress.
  • Technological neutrality. Have multiple effective technologies in one package; None of these should have privileges.
  • Blockchain agnostic. The cross-block protocol complements the previous two principles to allow the use of credible ledgers in a single package. Developers can build stand-alone blockchain applications, and their users have the freedom to choose a blockchain in that package or move their assets from one ledger to another if one doesn’t suit their purposes.

Digital identity and electronic signatures

It is clear that governments will not allow anonymous real estate transactions as long as we live in a world full of terrorist threats, money laundering problems, and blockchains that can potentially obscure such activity.

To address this, Digital identities have to be verified without revealing personal data in the chain at the same time. And the answer is the combination of old and new technologies. Public Key Infrastructure Technology (PKI) has been around for decades. The countries of the European Union are an example of the massive introduction of PKI through its legal regulatory framework eIDAS. Estonia, for example, offers the Estonian e-residency, a smart card with a private key in the chip.

In the PKI Users create an asymmetric public and private key pair. The private key It is used to encrypt transactions and create what is known as a digital signature. The public decrypts the signature and verifies the transaction if it is signed with the appropriate private key. In order to maintain the validity of the public key, the user requests a certification authority to create a publicly available certificate that contains the user’s public key.

PKI is a central system that is susceptible to various security vulnerabilities. We cannot remove a trusted third party to verify our identity, but we can fight different types of attacks on the centralized PKI infrastructure. Blockchain technology is the perfect solution for developing a new generation of PKI. Think of public certificates as tokens. Similar to creating property tokens (certificates) We can also create tokens to confirm our identity. If you lose your private key, you will need to contact your certification authority and ask them to update your identity token (certificate) as invalid.

It is not necessary to publish personal data in the chain, only a cryptographic representation that is linked to the personal data without disclosing it.

To reduce the risk of personal data leaks from centralized servers, we need to use sovereign identities. For example, a selective disclosure protocol can be used to store personal data on a user’s device, smartphone, and view transaction details in a limited way.

Digital identity is a separate issue that deserves a lot of attention and was elaborated in the context of the recent attack on Twitter, Europe’s experience with electronic signatures and the blockchain’s ability to prevent data leaks.

Conclusions

With all of these technologies and concepts in mind, we see a bigger picture. Credible public blockchains provide immutable ledgers that allow users to conduct peer-to-peer transactions unlike traditionally government property records. However, Blockchains do not require an agency to maintain the infrastructure as the public records are self-managed.

Title tokens are records that represent legal rights. They are validated in the chain by those whom we trust and who delegate this right. Trusted third parties are not only needed because a person cannot attest to their birth and death. for example, to allow inheritance proceedings, but for any legal problems and prosecution that inevitably arise. Through third parties and the cross-blockchain protocol, we can create an ecosystem of blockchains Here, users create and certify all kinds of rights, facts and digital identities.

Trusted records in an interoperable cross-chain environment

This concept is better than current centralized systems. since it goes through the framework of smart laws and digital authorities, and it’s the digital form (filters and patches) with the ingrained records of addresses owned by agents to whom the people delegate the mandate of power for legal governance. In contrast to the centralized system Ledgers require that everything in the chain be posted publicly so that it takes effect and does not change recorded transactions. Hence, chain governance is transparent and accountable.

This concept cannot be implemented overnight, but has the advantage that it can be tested step by step and executed in parallel with the existing public records system. The change will come if the government wants to benefit from the innovations Recognize the right of citizens to choose between a traditional register and a blockchain, This is a fundamental right for the decentralization of governance.

This is part three of a three-part series on title token theory – read the first part of the blockchain asset register here and here the second part on the cross-blockchain protocol and intelligent laws.

The views, thoughts, and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Oleksii Konashevych is the author of the Cross-Blockchain Protocol for Government Databases: The Technology for Public Records and Smart Law. Oleksii is Ph.D. Fellow of the EU Government-funded Joint International Doctorate Program in Law, Science and Technology. Oleksii worked with RMIT University’s Blockchain Innovation Hub and explored the use of blockchain technology for e-governance and e-democracy. He is also working on tokenization of real estate titles, digital IDs, public records and electronic voting. Oleksii co-drafted a law on electronic petitions in Ukraine, worked with the country’s presidential administration, and was the manager of the non-governmental E-Democracy Group from 2014 to 2016. In 2019, Oleksii participated in the drafting of a bill against money laundering and tax issues for crypto assets in Ukraine.

Receive Breaking News !

Install
×
Enable Notifications    Ok No thanks