HOM-NFT Feature 2: Identity and Title
Identity and Title
When creating a HOM-NFT, the parties involved must clearly prove and record their identity. HOM DAO uses a KYC (Know Your Customer)-AML (know your customer aAnti-Money Laundering) platform similar to a traditional financial services firms like Coinbase and Binance to verify the identity of the person wishing the mint a HOM-NFT of their property or buy a HOM-NFT from another owner of a HOM-NFT. In some countries, there may be an additional in person notary verification to support KYC-AML and transfer ownership of a HOM-NFT for the property. This ensures the validity and security of ownership.
Title describes the legal record of who owns a property ownership and history of ownership. Title is typically recorded by a government official in a land registry for some kind. In some countries there is Title Insurance, which is an insurance policy that covers legal costs in the event that a person who is not on title claims to have some right of ownership or use of the property.
HOM DAO members, and US attorneys Josh Lawler, Philp Milestone, and Sarah Fernanzdez coined the term “Abstraction of title on the blockchain away from government,” to describe HOM DAO’s groundbreaking solution to moving placing title records on the blockchain in a trust where title can securely live in perpetuity.
Once on the blockchain, there is no need to move the title from the blockchain to a traditional off-chain system and then back to the blockchain. Any changes or updates to title can be done Rather, the concept is to keep title on the blockchain where its record keeping is immutable and outside the realm of a corrupt government or individuals that could steal or otherwise illegally harm the chain of title records. It would also form the basis of an immutable land registry in countries where this system is either non-existent or in need of an overhaul.
Unfortunately, current title record-keeping and oversight is wrought with unintended and intended inaccuracies and fraud. In the United States alone, title fraud and competing claims for title are commonplace.
Do governments really steal land title? Sadly yes, either through sloppiness, graft, or violence. In the UK, where our modern concept of title was created, sloppiness by local officials happens frequently, “clouding” title and blurring true ownership. In the United States, competing claims for title are frequent, including a recent high profile case in Hawaii where Facebook CEO Mark Zuckerberg purchased a large estate in Kauai with several local families claiming that their lands had been improperly sold to Mr. Zuckerberg. In this case, poor title records, including the chain a title, was the culprit without due compensation due to a sloppy chain of title.
Many countries in Africa, Latin America, and Asia, have land registries that are terribly porous. It is common for corrupt government officials to sell the title for a property to an associate who has nothing at all to do with the property. Often, the family who lives on the disputed land can have their home taken or sold without their knowledge.out from under them. When governments fail, or are taken over by force (e.g. war), title evaporates, creating hardship and security issues for those who have had their property title stolen through a violent action by a foreign power.
It would not be surprising if 20 years from now, much of the title recording around the world moves to the blockchain records because a distributed ledger would be a preferable method of proving title because they are immutable, and are not subject to influences that are not representing the best or legal interest of the property (e.g., corrupt government officials or attempts by criminals to steal or misrepresent ownership of title).
If this concept of a global blockchain registry seems unrealistic, think back 20 years ago to a time when there were still paper maps. The combination of blockchain, extensiving mapping databases, photo recognition, and AI, all makes the concept of a blockchain- based land registry that spans the Earth - and is not subject to theft by governments. Reality then represents - more of a programming exercise rather than a fantasy.
ILLUSTRATION-SLIDE: Creating a global land registry on the blockchain