Korea to incorporate blockchain technology into real estate databases
- 5 years ago
The Korean government has decided to incorporate blockchain technology into real estate transactions …to prevent the forgery of property documents.
The new system is expected to boost both security and efficiency.
Park Se-young has more.
By changing names and faking documents, it's possible to get secured loans using someone else's land as collateral.
Because paper documents are easily altered and forged, the Korean government has decided to incorporate blockchain technology into real estate databases.
Blockchain is difficult to hack or forge because network participants work together to share and verify data.
Until now, people doing real estate business or seeking mortgage loans were asked to provide real estate certificates to financial institutions.
In the last year alone, 190 million documents were issued at a combined cost of around 115 million U.S. dollars.
Instead of customers having to submit physical certification, the newly proposed system will allow bank employees to check real estate ownership through the blockchain system's database.
The government says the system will not only provide security, but increase efficiency.
"We can prevent forgery and alteration because it provides security to the raw data, not the internet. It's been introduced in Sweden and some states in the U.S."
A trial service of the blockchain-based system will begin next January at 11 financial institutions on Jeju Island.
An independent system that tracks real estate transactions is also in the works.
Park Se-young, Arirang News.
The new system is expected to boost both security and efficiency.
Park Se-young has more.
By changing names and faking documents, it's possible to get secured loans using someone else's land as collateral.
Because paper documents are easily altered and forged, the Korean government has decided to incorporate blockchain technology into real estate databases.
Blockchain is difficult to hack or forge because network participants work together to share and verify data.
Until now, people doing real estate business or seeking mortgage loans were asked to provide real estate certificates to financial institutions.
In the last year alone, 190 million documents were issued at a combined cost of around 115 million U.S. dollars.
Instead of customers having to submit physical certification, the newly proposed system will allow bank employees to check real estate ownership through the blockchain system's database.
The government says the system will not only provide security, but increase efficiency.
"We can prevent forgery and alteration because it provides security to the raw data, not the internet. It's been introduced in Sweden and some states in the U.S."
A trial service of the blockchain-based system will begin next January at 11 financial institutions on Jeju Island.
An independent system that tracks real estate transactions is also in the works.
Park Se-young, Arirang News.