LAC PropertyChain Update - Pilot Scheduled for Summer 2021

Drawing by danae_po

Development of the LAC PropertyChain Dapp (Distributed application) has been completed and ChromaWay is working with the Inter-American Development Bank, the Peruvian land registry (SUNARP), and other stakeholders to launch the pilot during Q3 2021. The pilot will include several live virtual events (to accommodate ongoing COVID restrictions) and the opportunity for stakeholders to use the application to test property transactions at their convenience.

The pilot will enable land registrars, bank employees, government workers, notaries, surveyors, and other members of the property ecosystem to gain hands-on experience using a digital conveyance solution secured on a public permissioned version of the Chromia blockchain. Participants will register for access to the application much as they would for other apps by establishing credentials that will be used to digitally sign actions (e.g., attaching documents, submitting data, or approving contracts, etc.) that will be stored on the blockchain.

The dapp is powered by a novel smart contract/secure workflow technology that orchestrates the tasks that must be completed as part of a property transaction. The pilot is focusing initially on two high-volume transactions - mortgage discharge and property sub-division. For purposes of the pilot, integration with SUNARP (to collect property data) and RENIEC (to validate the national ID) was simulated.

Use of Pilot Tokens

One feature of the pilot will be to use tokens as an internal settlement and payment mechanism for property transactions. Participants will be issued pilot tokens (with no market value) directly to their digital wallets (Chromia Vault). Once a property owner initiates a transaction, the tokens covering all fees (e.g, land registry, surveyors, notaries, etc.) related to conveyance transactions will be escrowed on the blockchain. Once the smart contract/workflow is fully executed (i.e., all signatures have been received) including approvals by SUNARP, the tokens will be released to the payees. In the future, the tokens might be in the form of a stable coin that can be exchanged for an equivalent fiat currency such as Peruvian soles.

Background on the Project

The Inter-American Development Bank (IDB) engaged ChromaWay on a two-year project in Peru, Paraguay, and Bolivia on an initiative titled “Distributed Ledger Technology (Blockchain): The Future of Land Titling and Registry.” The primary goal of the project is to evaluate how blockchain technology can contribute to solving some of the most pressing problems of land administration in Latin America. The effort seeks to engage a consortium of urban and rural land registries, banks, notaries, and other government agencies to pilot a project in the three countries.

The project is connected to the IDB’s regional blockchain initiative called LACChain. The goal of LACChain is to accelerate the enablement and adoption of blockchain technology in the region for the promotion of innovation, the reduction of economic, social, gender, and other inequalities.