In September of 2016, CCRD announced that it would participate in a Pilot Program to study how blockchain technology could be implemented into current law and practice in Illinois land records, as well as how the state could benefit from this technology.
Scroll below report for additional resources. Public Comments can be left directly on this Page. Opinions in the Report are that of the author or CCRD alone, and should not be taken as shared by Pilot participants.
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More In-Depth Information
WHAT IS BLOCKCHAIN?
Simply stated, a blockchain is a distributed database/ledger of chronological, timestamped transactions that is decentralized across its user-base, with each user holding their own full copy of the ledger, and each user also acting also a “consensus verifier.” This eliminates the need for a third-party to “clear” or vouch for the accuracy of a transaction, as the database’s crpytographically-protected structure makes changing records or inserting false records almost impossible. Blocks of digitally-signed transactions are given “digital fingerprints” that are “hashed” using a “one-way” algorithm, and that encrypted block fingerprint is included in the next block. Because the transfer of the asset is verified across the network, once it is given to another, it cannot also be sold to a third party.
Essentially, trust between parties is enforced by technology, and fraud is not an option amongst participants in the system.
The security of the blockchain has spawned entire new industries focused on cross-notating transactions in the Bitcoin blockchain, even “smart contracts” that use technology to enforce performance and compliance. This allows many types of transactions or assets to be securitized and traded.
CCRD IS INTERESTED IN BLOCKCHAIN BECAUSE:
- It is the most secure form of chronological record-keeping available
- The transactional record is irreversible and impenetrable to hackers
- It will drastically increase government efficiency
- Real estate transactions have become too complex – this will simplify
- It is too easy to steal a house under current pre-blockchain structure
- Will lead to a paperless public record of property transactions
- Adoption will make Illinois a technology leader + investment center