To read this content please select one of the options below:

Constraints and benefits of the blockchain use for real estate and property rights

Oleksii Konashevych (Erasmus Mundus Joint International Doctoral Fellow in Law, Science and Technology, Research Centre of History of Law, Philosophy and Sociology of Law, Computer Science and Law, University of Bologna)

Journal of Property, Planning and Environmental Law

ISSN: 2514-9407

Article publication date: 6 July 2020

Issue publication date: 22 July 2020

1319

Abstract

Purpose

Many recent social media posts and news may create a perception of big success in the use of blockchain for the real estate industry, land registration and protection of titles and property rights. A sobering outlook is crucial because misleading concepts may bury the whole idea of blockchain use. This paper aims to research the possibilities of blockchain and other distributed ledger technologies (DLT) and applicability of these technologies for different purposes in real estate, property rights and public registries.

Design/methodology/approach

This research is framed with policy studies and focuses on property rights, land registration regulatory framework and information and communication technologies innovations. The context of this paper is decentralization which has been developed in political science studies and the role of blockchain and DLT in it. Therefore, the provided analysis of blockchain and DLT is interdisciplinary research to interpret the facets of DLT technologies in the context of real estate and land title registration.

Findings

Permissioned and private DLT systems cannot be considered a significant evolutionary step in government systems. Blockchain, which is distinguished from permissioned systems as the technology of the immutable ledger that does not require authorities, is a new word in governance. However, this technology has some principal features that can restrain its implementation at the state level and thus require further research and development. The application of blockchain requires a proper architecture of overlaid technologies to support changes of outdated and mistaken data, address issues of digital identity and privacy, legal compliance and enforceability of smart contracts and scalability of the ledger.

Originality/value

This paper shows the constraints of the technology’s properties which were not explained before in the context of title rights and land registration even though technological limits are known in more specific technical sources. Along with the known benefits this meant to help to avoid misinterpretation of some DLT features by non-technical people. A multidisciplinary approach in analyzing the technology and laws helped to better understand what can and cannot be beneficial for public registries and the protection of property rights. The presented outcomes can be laid down as requirements for the technical protocols aimed at addressing the issues of DLT and public policies to put blockchain at the service of society.

Keywords

Acknowledgements

This paper is an outcome of the PhD research performed inside of the Joint International Doctoral (PhD) Degree in Law, Science and Technology, coordinated by the University of Bologna (CIRSFID) in cooperation with the University of Turin, Universitat Autònoma de Barcelona, Tilburg University, Mykolas Romeris University, The University of Luxembourg. The author is grateful to RMIT University and the team of Blockchain Innovation Hub for the seminal collaboration. Thanks to supervisors Professor Marta Poblet Balcell, RMIT University (Melbourne, Australia) and Professor Pompeu Casanovas Romeu, La Trobe University (Melbourne, Australia).

Citation

Konashevych, O. (2020), "Constraints and benefits of the blockchain use for real estate and property rights", Journal of Property, Planning and Environmental Law, Vol. 12 No. 2, pp. 109-127. https://doi.org/10.1108/JPPEL-12-2019-0061

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

Related articles