Using blockchain technology to facilitate property transactions

Abstract

BACKGROUND: As a medium of exchange, money enables the transfer of economic value and forms the basis of financial transactions. The transition from the third to the fourth industrial revolution has brought about technologies such as blockchain and cryptocurrencies that are transforming monetary transactions and methods of payments. OBJECTIVES: This article discusses an exploratory qualitative study into the use of the blockchain technology to facilitate the processes and payments related to land and landed property administration. METHOD: Nineteen semi-structured face-to-face interviews were conducted with role-players who are involved in an authoritative capacity in the current property transfer process. FINDINGS: The findings show that blockchain technologies could significantly improve the processes involved in maintaining the electronic records associated with landed property. Blockchain technology has only been associated with cryptocurrencies before, and the argument advanced is that fiat currency should be able to be used with the same technology. To maintain the integrity of the property register, the deeds office and the South African Reserve Bank (SARB) must remain in control of the processes. Irrevocable payments should be made against registration confirmation, thus replacing the current paper-based processes with electronic records. CONCLUSION: Blockchain technologies can be used with fiat currency and should be considered for ownership tracking of immovable property.