The public union “Virtual Assets of Ukraine” (“VAU”) has completed the development of a prototype registry for real estate and land based on Web3 technologies, representatives of the organization told ForkLog.
The project focuses on the tokenization of property on the blockchain. A new class of assets—title tokens—has been proposed, which serve as direct records of ownership rights to land and real estate.
The prototype demonstrates how owners can transfer their assets from the existing real estate and land cadastre registry to the blockchain property registry (BPR). It is envisaged that online transactions for the transfer of rights can be conducted using model smart contracts.
“Bureaucratic work will be automated, minimizing the human factor and all associated risks,” noted “VAU”.
Following the launch of the BPR, the number of standard smart contracts is expected to grow to meet market needs: smart mortgages, smart wills, the creation and investment in decentralized autonomous organizations, and decentralized finance contracts.
According to the project authors, the blockchain registry will not only speed up the processing of purchase and sale transactions but also introduce new cybersecurity standards for such operations.
The prototype is based on the Internet Computer Protocol and Polygon blockchains. There are plans to transform it into a multichain system in the future.
The technical developer of the BPR is the IT company Kitsoft, with financial support from the Dfinity Foundation crypto fund.
“The project for tokenizing real-world assets and simultaneously registering property rights without intermediaries in a decentralized real estate and land registry is unparalleled globally and gives Ukraine an entry ticket into the club of world Web3 leaders,” stated “VAU” CEO Konstantin Yarmolenko.
According to Oleksiy Zhmerenetskyi, head of the supervisory board of “VAU” and coordinator of the inter-factional association of Ukrainian MPs Blockchain4Ukraine, the BPR could become the foundation for post-war infrastructure recovery in Ukraine and attract international investments.
“VAU” plans to present the prototype to the Ministry of Justice of Ukraine and test the project in the regulatory sandbox of the Ministry of Digital Transformation.
As a pilot project, the organization has partnered with the Kyiv-based development company KBD.estate to implement the construction of the private city “Hlebovka,” featuring 925,000 square meters of housing based on the BPR concept and asset tokenization technology.
In November 2023, the Ministry of Digital Transformation announced the creation of a sandbox for Web3 projects in Ukraine.
A year earlier, Blockchain4Ukraine and “VAU” signed a roadmap for the implementation of blockchain and Web3 technologies in the country.