Relevance: GS Paper II – Governance & Technology
 Source: LiveLaw, The Hindu

Context / Why in News

The Supreme Court of India has urged the government to explore blockchain technology for land and property registration, terming the current process “traumatic” due to frauds, delays, and lack of transparency. The move aims to ensure secure, tamper-proof, and reliable property ownership records.

Current System vs Blockchain-Based System

Feature Current System Blockchain-Based System
Ownership Proof Document registration; does not ensure clear title Tamper-proof digital ledger with verifiable ownership records
Fraud Risk High – duplicate deeds, forged documents Extremely low – records immutable and time-stamped
Verification Lengthy and manual Real-time verification via distributed network
Uniformity Varies across states Enables standardised, national-level system

Key Concepts: Blockchain and Tokenisation

Concept

Explanation
Blockchain A decentralised digital ledger where each transaction (block) is cryptographically linked, ensuring data integrity and transparency.
Tokenisation of Assets Conversion of a physical asset (like land) into a digital token representing ownership, allowing easier and traceable transfer on blockchain.

Challenges and Way Ahead

Challenges

Way Ahead
Outdated land laws and inaccurate legacy records Introduce conclusive land titling through legal reform
Lack of technical infrastructure and expertise Build digital infrastructure and train officials
Data privacy and interoperability issues Create a national blockchain policy for land data
Resistance to adoption Pilot projects and public awareness on digital property rights

Significance

  • Could reduce 60–70% of civil disputes linked to land ownership.
  • Enhances ease of doing business, rural credit, and citizen trust.
  • Aligns with Digital India and SDG 16 – Peace, Justice, and Strong Institutions by strengthening governance transparency.

One-line Wrap:
 Integrating blockchain into land registration can revolutionize property governance in India — ensuring transparency, efficiency, and trust in ownership systems.

UPSC Prelims Practice Question

With reference to blockchain in property registration, consider the following statements:

  1. Blockchain enables tamper-proof and transparent record-keeping of land titles.
  2. Tokenisation converts physical property into a digital representation of ownership.
  3. India currently follows a conclusive land title system.

Which of the statements given above are correct?
 (a) 1 and 2 only
 (b) 2 and 3 only
 (c) 1 and 3 only
 (d) 1, 2 and 3

Answer: (a)

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