Georgia’s Ministry of Justice has taken a significant step towards modernizing its public service sector by signing a memorandum of understanding with Hedera, a prominent blockchain platform. This collaboration aims to explore the use of distributed-ledger technology within various public services, as reported by local sources.
Justice Minister Paata Salia held discussions with representatives from Hedera to identify potential areas where cooperation could be beneficial. One of the main topics was the possibility of migrating data from the National Agency of Public Registry (NAPR) onto a blockchain network. This transition is expected to enhance the protection of property rights, while also increasing the transparency and reliability of state registries.
During the meetings, officials highlighted Georgia’s existing smart-contract service, which is managed by NAPR, and discussed its future development prospects. Among the innovative ideas under consideration is real-estate tokenization, a process that involves converting physical assets into digital tokens. This could potentially open up new avenues for property transactions and investment.
The Ministry of Justice has confirmed plans to establish joint working groups involving experts from both the ministry and NAPR. This initiative aims to facilitate technical cooperation with Hedera and advance the ongoing integration of blockchain technology.
The National Agency of Public Registry has a history of collaborating with the private sector to incorporate blockchain technology into its land registry system. This endeavor began with a pilot project in April 2016, which, while not replacing the existing registry, introduced an additional layer of security through a private, permissioned blockchain. This system was further secured by anchoring it to the public Bitcoin Blockchain using a distributed digital timestamping service. Such measures have enabled citizens to verify the authenticity of their land certificates and property transactions.
As a testament to the effectiveness of these reforms, the World Bank recognized Georgia in its Doing Business 2016 report, ranking it third globally for ease of property registration. Recently, NAPR has also launched a Smart Contract service. This innovative offering allows Georgian citizens around the world to remotely execute and register immovable property sales and mortgage agreements through an AI-integrated electronic identification system, significantly streamlining what typically is a time-consuming process.
