Sweden has announced its collaboration with blockchain company ChromaWay, consulting firm Kairos Future and telecommunications service provider Telia. The team work is focused on testing the blockchain for the nation’s land registry system. The project could possibly go live this autumn. “The proposed solution would make Sweden the front runner in this field,” the land registry noted.
According to the Swedish Land Registry, the companies have presented a framework or the so-called “proof of concept” through a white paper and technical demonstration of the possibility to put the Swedish land registry on the blockchain.
Sweden is examining blockchain as a technology capable of creating permanent, public ledgers of all transactions. Such ledgers can fully replace complicated systems with one database.
“In the first phase of the technology, we have tested the process with some banks,” said Magnus Kempe, Kairos Future director of retail and finance. “Now we are on the second phase of the project, where we will test in a full-sized environment.”
Kempe revealed that according to their plan real-estate transactions will be put on blockchain once the deal between buyer and seller is agreed and a contract is concluded. Blockchain system will enable all the parties involved in the transactions – the banks, the government, brokers, buyers and sellers – to control the progress of the deal.
Normally, it takes several months to fulfil a real estate deal in Sweden.
“Digital documentation of property transfers and good technology will enable the confirmation for all parties in a real-estate transaction [with] the highest level of security,” said Mats Snall, head of development of real estate registration at the Swedish Land Registry. “Being able to assign pending title deed is also something of value for all parties. Everyone will benefit from this.”
ChromaWay is focused on using colored coins for storing such assets as property and shares on the blockchain. In cooperation with Estonia’s LHV Bank, the company has developed an award-winning Cuber app that allows users to send and receive Euros without charge. ChromaWay is currently working on a Smart Contract Platform for digitizing and representing workflows in a reliable, private and efficient way (complex transactions and workflows are simplified into code).
Henrik Hjelte, chief of ChromaWay, says that the company is a pioneer in the idea of registering contractual processes in the blockchain technology. “We are proud to contribute to establish the technology for real estate transactions, an area we have been looking at for a long time,” Hjelte admitted.
Blockchain has recently been promoted in the IMF’s quarterly magazine, Finance & Development. The magazine published an article called “The internet of Trust,” where it focused on the expanded range of benefits the blockchain can offer.