1. Real Estate Blockchain Firm Ubitquity to Build Tokenized Title Platform

2. Mobile DeFi and the Shift Toward Self-Sovereignty

3. Russia Is Set to Create a New Regime for Tokenized Securities

4. Title Token for Blockchain Estate Registry, Part 3

Reading Notes

Real Estate Blockchain Firm Ubitquity to Build Tokenized Title Platform

• Having tokens represent a property, along with records of conveyance stored on a blockchain, creates “huge efficiencies for the abstract process.”
• With the technology closing agents can better avoid fraud since there is only a single source of truth and reconciliation is no longer needed.

Mobile DeFi and the Shift Toward Self-Sovereignty

• Many speculate that mainstream adoption of cryptocurrency is dependent solely on improving ease of access and user experience. In reality, there’s an even bigger obstacle: a mentality shift.
• Self-sovereignty and personal autonomy are the endgame of this technology, and with that goal comes a significant increase in personal responsibility for one’s funds.
• The legacy system takes away your autonomy and replaces it with convenience, offering useful tools related to fraud protection and password management. By comparison, cryptocurrencies, decentralized finance and other forms of distributed technology fall on the other end of that spectrum, providing the ability to have true ownership of one’s worth.
• The liberating elements of crypto and financial freedom are promising but intimidating since security is passed from the hands of a third party directly into the hands of the consumer.
• Crypto, DeFi and decentralized applications promise to fulfill the original vision of our connected future, in which users could retain absolute ownership of their funds as they transacted in a global market.
• The key here is offering familiar experiences in line with best practices in crypto security so that the difficult but absolutely necessary shift in mentality is made more palatable.
• The decision to be personally responsible for one’s own wealth should be a burden of diligence, not of exhausting learning experiences.

Russia Is Set to Create a New Regime for Tokenized Securities

• According to the new (Russian) law, digital financial assets, or DFAs, represent digital rights, including monetary claims, the possibility of exercising rights under issuable securities, the right to participate in the capital of a nonpublic joint-stock company, and the right to demand the transfer of issuable securities.
• In a broad sense, this means that DFAs are tokenized securities.
• Basically, the new Russian law regulates the issuance, turnover and offering of tokenized assets.
• DFAs can be only issued on licensed issuance platforms that are operating in full compliance with incredibly strict regulations.
• It’s ironic that with all this time spent to create crypto regulation, there is no crypto regulation. However, Russian legislators managed to create a clear approach to the regulation of tokenized securities.

Title Token for Blockchain Estate Registry, Part 3

• Discussing cross-blockchain protocol that enables the use of ledgers in an interoperable bundle.
• The protocol works as an aggregator of tokens across blockchains.
• The resulting representation of the collected tokens is a logical superstructure across many blockchains — the public registry.
• A government agency, for example, doesn’t exclusively own one public property database, but it literally lives on every user’s machine in the cross-blockchain database.
• A component of governance to address legal issues and enforce lawful decisions – in Title Token for Blockchain Estate Registry, Part 2
• Three fundamental principles for decentralization: Technological pluralism. Technological neutrality. Blockchain agnostic.
• There must be verified digital identities, but without exposing personal data on-chain at the same time. And the answer to that is the combination of old and new technologies.
• Blockchain technology is the perfect solution to develop a new generation of public key infrastructure (PKIs). Think about public certificates as tokens. Similar to creating tokens (certificates) of property, we can also create tokens to certify our identity. If you lose your private key, you will need to contact your certificate authority and ask to update its token of your identitiy (certificate) as invalid.
• To reduce the risks of leaks of personal data from centralized servers, we should use self-sovereign identities.
• Credible public blockchains provide immutable ledgers, which, contrary to traditionally state-owned property registries, enable users to perform peer-to-peer transactions.
• However, blockchains do not require any public agency to maintain the infrastructure, as public ledgers are self-governed.

Title tokens are records that represent legal rights. They are validated on-chain by those whom we trust and delegate this right.

• Contrary to the centralized system, ledgers require everything to be recorded on-chain publicly to take effect, and they do not alter recorded transactions. So, on-chain governance is transparent and accountable.
• This concept can be piloted step-by-step and run parallel to the existing system of public registries.
• The shift will happen when the government that wants to benefit from innovations recognizes the right of citizens to choose between a traditional registry and a blockchain, and it is a fundamental right for the decentralization of governance.

The post ROTD: Tokenized Title Platform, Self-Sovereignty, Tokenized Securities, Title Token for Blockchain Estate Registry appeared first on Blockchain Insider.

Headlines

1) Title Token for Blockchain Estate Registry, Part 1

2) Title Token for Blockchain Estate Registry, Part 2

3) Tokenized Real Estate Hasn’t Lived Up to the Hype: Property Researcher

4) Noncustodial Technology and Security Is the Inevitable Future

Reading Notes

1) Title Token for Blockchain Estate Registry, Part 1

Notes on ROTD: Tokenizing Real Estates & Financial Inclusion

2) Title Token for Blockchain Estate Registry, Part 2

The title token is not “backed” with real property; this is the record that directly certifies the property right — the same as paper title deeds, or certificate of ownership, etc. It is a digital form of property record and the primary source of knowledge about property rights, which means no paper form is needed.

The title token can represent any legal rights: immovable property (land and buildings), movable (car, boats, aircraft, etc.), corporate rights (shares), and various property rights and derivatives (mortgage, debts and securities). Any legal right, can be used to certify legal facts and events.

To enable blockchain technology to replace the traditional registries, the state machine requires reforms.

Now, states monopolistically own and run public registries. Alternative registries can be enabled through new regulations, technical standards and government supervision to ensure compliance.

Those who are happy with traditional registries and bureaucracy can stay with these, but those who want to use the full power of blockchain, smart contracts and decentralized applications can transfer their records from the centralized database to any ledger.

A blockchain as a repository of evidence does not need a third party to maintain it, but we still need third parties to certify various facts of our life.

Cross Reference is a basic protocol to maintain the validity of records.

In a more general scheme, cross-referencing is a method of providing status records by trusted third parties that have knowledge about legal facts and events. The blockchain doesn’t make them valid, but the authority that certifies the fact. Blockchain technology just has a better infrastructure for this system to make sure these records are uncorrupted.

The ledger immutability is not a problem; it is just a matter of better application design.

Due to no censorship, any junk data is possible on public blockchains. So, the validity here is provided by the traditional trusted parties through cross-referencing. Though their acts are not hidden as in any state-owned database, they are transparent and, hence, accountable. With cross-reference, it is possible to address not only the loss of private keys but legal disputes and various procedures for obtaining permits from the government agencies.

Digital authorities and digital dictatorship

To eliminate dead-end situations when neither party has access to their records, there is a root record, which can issue patches to the system.

We need patches to filter out those records that aren’t relevant or illegal.

The root can belong to a court. There might be multiple roots based on branches of power (legislative, executive, judicial), and of course, the root can be controlled collectively through a multi-signature scheme — to make sure that those who have a mandate of power make lawful decisions.

Eventually, we will likely see the system of a direct e-voting (e-referendum) where not only the representatives of a collective body (council, parliament, committee) make transactions but all the citizens of a town, a state or a whole country.

The most fundamental thing here is that a digital dictatorship has no chance.

Governance is not a matter of mathematical consensus. The interpretation of records is a layer above blockchains that represents the social consensus. How we decided which root addresses we trust, how and when we reset roots, is a matter of the political system. The only thing that is unchanged is the blockchain. As a public repository it keeps all kinds of records as evidence of everything that happens in the real world.

4) Noncustodial Technology and Security Is the Inevitable Future

Noncustodial Technology and Security Is the Inevitable Future

There’s no doubt noncustodial technology is the future — it’s just a question of when it enters the mainstream.

Making transactions and accounts exponentially safer while simultaneously putting control back into the hands of the users.

Custodial wallets often hold millions of dollars worth of assets on behalf of their customers. The benefit of having full control over your funds is the difference between your account being frozen when you want to make a transaction and being able to freely trade at your own discretion. The key is that the customer is in control.

The freedom and independence ensured by noncustodial technology strike at the heart of the ethos of blockchain: the empowerment of individuals. By decentralizing custody, noncustodial technology proves that greater power can and should reside in the hands of individuals.

The ideal approach to delivering the best outcomes is one that is pragmatic.

The post ROTD: Asset Backed Token appeared first on Blockchain Insider.