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Hybrid Approaches for Smart Contracts in Land Administration: Lessons from Three Blockchain Proofs-of-Concept

Author

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  • Rohan Bennett

    (Swinburne Business School, Swinburne University of Technology, Hawthorn 3122, Australia
    Kadaster International, Netherlands’ Cadastre, Land Registry and Mapping Agency, 7311 KZ Apeldoorn, The Netherlands)

  • Todd Miller

    (ChromaWay, S-111 64 Stockholm, Sweden)

  • Mark Pickering

    (Swinburne Business School, Swinburne University of Technology, Hawthorn 3122, Australia)

  • Al-Karim Kara

    (Land Title and Survey Authority of British Columbia, Victoria, BC V8W 9J3, Canada)

Abstract

The emergence of “blockchain” technology as an alternative data management technique has spawned a myriad of conceptual and logical design work across multiple industries and sectors. It is also argued to enable operationalisation of the earlier “smart contract” concept. The domain of land administration has actively investigated these opportunities, albeit also largely at the conceptual level, and usually with a whole-of-sector or “big bang” industry transformation perspective. Less reporting of applied case applications is evident, particularly those undertaken in collaboration with practicing land sector actors. That said, pilots and test cases continue to act as a basis for understanding the relative merits, drawbacks, and implementation challenges of the smart contract concept in land administration. In this vein, this paper extends upon and further refines the existing discourse on smart contracts within the land sector, by giving an updated, if not more nuanced, view of example applications, opportunities, and barriers. In contrast to the earlier works, a hybrid solution that mixes smart contract use with existing technology infrastructure—enabling preservation of the role of a land registry agency as the ultimate arbiter of valid claims—is proposed. This is hypothesised to minimise disruptions, whilst maximising the benefits. Examination of proof-of-concept work on smart contract and blockchain applications in Sweden, Australia (State of New South Wales), and Canada (Province of British Columbia) is undertaken. Comparative analysis is undertaken using several frameworks including: (i) business requirements adherence, (ii) technology readiness and maturity assessment, and (iii) strategic grid analysis. Results show that the hybrid approach enables adherence to land dealing business requirements and that the proofs-of-concept are a necessary step in the development trajectory. Furthering the uptake will likely depend on again taking a whole-of-sector perspective, and attending to remaining issues around business models, stakeholder acceptance, partnerships and trust building, and legal issues linked to data decentralisation and security.

Suggested Citation

  • Rohan Bennett & Todd Miller & Mark Pickering & Al-Karim Kara, 2021. "Hybrid Approaches for Smart Contracts in Land Administration: Lessons from Three Blockchain Proofs-of-Concept," Land, MDPI, vol. 10(2), pages 1-22, February.
    • Handle: RePEc:gam:jlands:v:10:y:2021:i:2:p:220-:d:503899
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    References listed on IDEAS

    as
    1. Bennett, Rohan Mark & Pickering, M. & Sargent, J., 2019. "Transformations, transitions, or tall tales? A global review of the uptake and impact of NoSQL, blockchain, and big data analytics on the land administration sector," Land Use Policy, Elsevier, vol. 83(C), pages 435-448.
    2. Polat, Zeynel Abidin & Alkan, Mehmet, 2018. "Design and implementation of a LADM-based external archive data model for land registry and cadastre transactions in Turkey: A case study of municipality," Land Use Policy, Elsevier, vol. 77(C), pages 249-266.
    3. Unger, Eva-Maria & Bennett, Rohan & Lemmen, Christiaan & de Zeeuw, Kees & Zevenbergen, Jaap & Teo, CheeHai & Crompvoets, Joep, 2020. "Global policy transfer for land administration and disaster risk management," Land Use Policy, Elsevier, vol. 99(C).
    4. Lauslahti, Kristian & Mattila, Juri & Seppälä, Timo, 2016. "Smart Contracts – How will Blockchain Technology Affect Contractual Practices?," ETLA Reports 57, The Research Institute of the Finnish Economy.
    5. Thomas Osterland & Thomas Rose, 2020. "From a Use Case Categorization Scheme Towards a Maturity Model for Engineering Distributed Ledgers," Progress in IS, in: Horst Treiblmaier & Trevor Clohessy (ed.), Blockchain and Distributed Ledger Technology Use Cases, pages 33-50, Springer.
    6. Prince Donkor Ameyaw & Walter Timo de Vries, 2020. "Transparency of Land Administration and the Role of Blockchain Technology, a Four-Dimensional Framework Analysis from the Ghanaian Land Perspective," Land, MDPI, vol. 9(12), pages 1-25, December.
    7. Caroline Jobin & Sophie Hooge & Pascal Le Masson, 2020. "What does the proof-of-concept (POC) really prove? A historical perspective and a cross-domain analytical study [Qu'est-ce que la preuve de concept (POC) prouve vraiment ? Perspective historique et," Post-Print hal-02570321, HAL.
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    Cited by:

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    7. Houssein Hellani & Layth Sliman & Abed Ellatif Samhat & Ernesto Exposito, 2021. "On Blockchain Integration with Supply Chain: Overview on Data Transparency," Logistics, MDPI, vol. 5(3), pages 1-23, July.

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