A report titled, “Blockchain and Property in 2018: At the End of the Beginning,” looks at several issues related to Asset Tokenization.
At the heart of utilizing Blockchain to share asset and land ownership is the need for a registry. The registry must have an accurate way to verify an owner’s identity and must facilitate a smart escrow, disaggregated and fractional rights, and peer-to-peer transactions.
The report develops a framework to measure adoption levels.
Level 1 adoption describes a transaction where public Blockchain is used to record documents. Level 6 describes fractional rights where the rights for a given parcel are fragmented and managed via Blockchain. Level 8 adoption describes interoperability where different Blockchain registries merge data.
The report also looks at advantages of integrating Blockchain. One advantage could be a 30% lower premium for consumers of title insurance due to efficiencies allowed by Blockchain.
The report also looks at whether Blockchain could drive financial inclusion by lowering barriers to commercial bank access and lending.
Finally, the report looks at whether Blockchain can add data to land management, disrupt land management policy, and provides a review of current registries across the world.