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fingers crossed, duplicitious
A Nordic country known for its friendliness and stoicism could also be close to show us the importance of trust.
This week, Sweden’s land registry, along side a gaggle of personal companies, announced a pilot to place land titles on a blockchain was getting into a replacement phase. After months of testing, the initiative will now specialise in integrating the tech into bank processes.
While this might appear to be a clear non-financial application for blockchain (given the paper-intensive, slow and sophisticated process of most property transactions), its rollout won’t be easy, especially in geographical areas where it’s most needed.
Why? It comes right down to trust.
For a government to migrate something as fundamental as property rights to a replacement platform supported an unfamiliar technology, it’ll got to calculate the support of the people and institutions it’s designed to profit .
Without a high level of confidence within the government’s motives and competence, the project will encounter resistance, especially given the worth involved, the danger if it goes wrong and therefore the comfortable familiarity with the prevailing (albeit clunky) system.
Coincidentally, in the week also saw the publication of the OECD’s trust barometer, which tracks the evolution of the degree to which citizens trust their government.
As expected, trust is declining in most countries.
Sweden, however, held steady at a comparatively high level (56%), news that bodes well for public acceptance of the new platform, and will help the country set an honest example for others to follow.
The Republic of Georgia is during a similar situation.
Earlier this year, it revealed that it had been increasing the scope of an attempt aimed toward registering land titles and recording transactions on a blockchain platform.
The country doesn’t make it onto the OECD barometer, but the planet Bank indicates it’s a comparatively trusted place to try to to business.
Yet even in countries with ‘reliable’ governments, implementation won’t be easy, especially when it requires the buy-in of a good spectrum of personal institutions.
One of the banks participating within the next phase of Sweden’s land registry trial has already said that they need no plans to implement the platform – it’s participating just to find out more about the tech. However, with time, testing and communication, organizations in Sweden and Georgia should be ready to gradually roll out blockchain land registries.
The positive impact on the economy could inspire other implementations, reception et al. .
Yet most other countries have higher barriers, consistent with the OECD trust barometer. a scarcity of confidence in official institutions will weaken the acceptance of any change they propose.
Unfortunately, it’s precisely those countries that would most enjoy a more transparent and tamper-proof land registry system.
The irony doesn’t stop there. a good greater and sometimes overlooked paradox is this: you would like to start out with a high level of trust before you’ll implement a system that creates it unnecessary.