Paper to digital: Raipur shows the way in using blockchain for citizen services

The blockchain will initially include documents like building permission certificates, work orders, and colony development. (Image Pixabay)
The blockchain will initially include documents like building permission certificates, work orders, and colony development. (Image Pixabay)

Summary

Blockchain technology, initially designed for cryptocurrency transactions, is now being used to secure real estate data in Raipur. Discover how this innovation could revolutionize administrative efficiency and reduce fraud.

Raipur, the capital of Chhattisgarh, is at the forefront of using digital technology for the management of real estate transactions. The Raipur Municipal Corporation (RMC) has partnered with Airchains, a leading blockchain solutions provider, to secure real estate data on a blockchain platform.

The blockchain will initially include documents like building permission certificates, work orders, and colony development permissions. Airchains claims it has developed zero-knowledge proofs and fully homomorphic encryption (FHE) technologies, which will safely store the data and allow it to be transparently accessed, while securing and protecting it from fraud.

Fully Homomorphic Encryption (FHE) allows computation on encrypted data without needing to decrypt it first. 

Blockchain is the backbone of cryptocurrencies, but it has found many uses where cryptocurrencies don’t. A blockchain is an electronic ledger with unusual features: records may be verified by anyone, and a record, once entered, cannot be deleted.

This has far-reaching consequences. The transparency makes it possible for anyone (or rather, for many persons) to verify and authenticate transactions. At the same time, the immutability of records makes it hard to carry out frauds.

Blockchain technology, the foundation of cryptocurrencies, has diversified its applications beyond its original financial confines. It acts as a digital ledger that is unique in its ability to securely record data in a manner that is both transparent and immutable. These features contribute to reducing fraudulent activities, providing a layer of data privacy using zero-knowledge technology, and maintaining the integrity of the records.

While blockchain technology was originally designed for cryptocurrency transactions, its versatility has led to its adoption across various sectors. Financial institutions use them to keep internal records and protect against fraud. A bank employee cannot falsify entries on a blockchain, or delete it.

The UN’s High Commission for Refugees uses blockchains for direct benefit transfers to ensure a refugee does not claim benefits more than once.

High-end jewellers use blockchains to authenticate products. The history of ownership of a designer piece of jewellery can be recorded on a blockchain. A thief who steals the jewellery cannot prove ownership, and a forger cannot put an imitation piece onto the blockchain.

Municipal corporations in Finland and Estonia use blockchains to ensure urban projects meet satisfaction. For instance, a sewage project is supposed to service 100 households. A blockchain can be used to solicit the households’ opinions and the project is deemed completed and payments made automatically only when all users have said they are satisfied.

Setting standards in blockchain

Back home, RMC and Airchains are putting old records on the blockchain. New building permission certificates will be issued with blockchain QR codes. Between 1 April, 2022, and 31 March, 2024, the RMC approved over 8,300 building permission certificates and it recorded 15 to 20 colony completion certificates per annum along with approximately 40 to 60 work orders annually. These will all be placed on the blockchain platform.

The integration of zero-knowledge (ZK) technology allows these records to be verified without compromising privacy. Anyone who wishes to check the authenticity of a work order or a building permission may do so, but thanks to ZK, private data will be protected. As RMC employees get comfortable with the new system, the plan is to expand this to more types of certifications, ownership records, etc.

Zero-knowledge proofs are cryptographic methods that allow one party to prove to another that they know a value or statement is true 

This technology will improve transparency, reduce corruption, and increase administrative efficiency. By leveraging ZK-FHE, the RMC can ensure data security and privacy. This should lead to faster certification, and quicker, more secure transactions while ensuring records are authentic and easily accessible. The transparency of fully verifiable data also reduces the chances of fraud.

The successful implementation in Raipur will serve as a model for other municipalities looking to enhance administrative efficiency and transparency.

Streamlining property ownership verification and transaction history checks will expedite processes for buyers, sellers, government authorities, valuers, mortgage institutions, and other lenders. This addresses a critical pain point in real estate transactions, and could considerably reduce friction, fraud, and litigation.

Also Read: Unlocking wealth: AI and blockchain solutions for unclaimed asset recovery

 

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