Georgia is taking steps to introduce smart contracts in real estate registrations that can help enhance transparency and efficiency and reduce costs.
A smart contract is a computer protocol intended to digitally facilitate, verify, or enforce the negotiation or performance of a contract. Smart contracts allow the performance of credible transactions without third parties. These transactions are trackable and irreversible.
The Georgian National Agency of Public Registry has already started working on this direction.
It is already possible in Georgia to register land titles in Bitcoin blockchain. Georgia has therefore become one of the first countries to use the Blockchain platform to complete property-related government transactions.
Last year, the Georgian National Agency of Public Registry signed a new memorandum of understanding with Bitcoin mining company Bitfury Group to develop and use a system for registering land titles.
Blockchain technology will bring security to real estate transactions because there is no central point of failure. The ledger is distributed among many computers, so a would-be hacker would need to simultaneously attack at least 51 percent of the network in order to fraudulently alter records.