Blockchain integration in state administration through the example of Georgia
Georgia is not only one of the most promising countries for mining but also a country that has successfully integrated blockchain in inner processes. For more than a year, Georgia officially deploys blockchain to register the purchase and sale of ownership rights to land. So what is the advantage of using the technology in the inner state processes?
Transparency and absence of corruption
Use of blockchain technologies for business and management purposes has a number of undeniable benefits:
- Absence of red tape and intermediaries.
That is why currently Georgia successfully utilizes blockchain-based registration of real estate deals. Since February of 2017, the Ministry of Justice has been using the blockchain service developed by BitFury and aimed at the protection of citizens’ property rights. As the reliability of the technology depends on the real number of machines, BitFury developed a method that allows duplicating the whole database to Bitcoin blockchain. Huge and unbelievably vast database allows all private firms that are using it to make sure that data is stored securely.
Australia, China, and the UAE also reported their plans to integrate blockchain in the system of state authorities, but Georgia became a pioneer in terms of registering real estate deals.
Meanwhile, Estonia is considered a pioneer implementing blockchain in the financial sector. Back in 2015, the country launched several projects connected with secure data encryption. For instance, LHV Bank started the project Cuber Wallet, a Bitcoin wallet that allows transferring funds quickly without any fees. Moreover, a Public Notary service was introduced in the country, which is a blockchain-based app, where citizens can register marriages, civil agreements, and birth certificates.
One of the most blockchain-friendly and advanced countries is Switzerland. It has been testing the blockchain based e-identity system since 2015.
Achievements of Georgia in using blockchain
What has Georgia achieved in a year’s work of the blockchain based cadastre system?
- Transparency of obtaining ownership rights to real estate and land has significantly increased. Number of frauds has decreased.
- Thanks to the fact that blockchain takes on the role of a notary that certifies rights and deals, time required for filling out papers has reduced. Today one can close a real estate deal in a single day. To process all documents, one will have to visit the cadastral office and pay from $50 to $200 depending on the type of documents required and the speed of processing.
- Obtainment of ordinary, physical papers that confirm ownership rights is still possible. Data is registered on blockchain, meaning that it is very simple to verify the authenticity. And it is very difficult to counterfeit such documents.
The high transparency of deals is making Georgia more and more attractive for business and making investments. Currently, blockchain implementation in different economy sectors is a rather promising direction. Georgia is already considered a very attractive country for entrepreneurial activity, and with the implementation of blockchain technologies, which are profitable for business, its global ranking will be growing.