Blockchain and Proof of Ownership
To own any asset digitally, you must have records of the assets you own. This proves your claim as the owner of that asset, like real estate, vehicle, equity, art, music, etc. The existing ownership verification and transfer processes are slow, vulnerable to errors, opaque, and occasionally corrupt. Using blockchain to prove ownership creates a new approach to property records, keeping data safe while giving citizens improved control over their assets. This article explains how blockchain can aid proof of ownership.
What is proof of ownership?
A tokenization technique for storing data form on the blockchain called Proof of Ownership offers unchangeable evidence of who owns the data. It is better than existing record-keeping systems that rely on a central repository and an owner of the data. A centralized approach to data records leaves room for various issues, such as simple tampering to loss or record destruction. Without an option, data owners have to rely on a third-party central data repository.
Using the Proof of Ownership approach eliminates the possibility of fraud historically associated with data ownership. Proof of Ownership is useful in various cases, such as property wills, real estate documents, asset ownership, medical records, product details, logistics, and Identity Management and verification. This blockchain process makes it easier to verify ownership records clearly and concisely.
A use case for proof of ownership
Blockchain technology is a perfect solution for offering digital ownership, as it offers transparency, decentralization, and cryptographic security. The concept of blockchain proof of ownership can be applied to various industries. Let's discuss how the automobile industry could use Proof of ownership for vehicle registration.
The Current Business Processes
In the existing vehicle registration system, it is very difficult to register vehicles and get registration information and an update on the registration of vehicles in case of a second sale, as the whole process is manual and requires human intervention at every step. The vehicle owner filled out an online form which requires verification from the registered authority. This process is time-consuming, and the outcome may change depending on the sort of request that the citizen specifies in the form. This procedure results in issuing a final ownership certificate to the new owner in the event of a vehicle ownership change.
Source: Traditional Car Registration System
Drawbacks of current business processes
- Problem in-state to state transfer
- The cost of the process may be high
- NOC from local police, RTO
- Complicated process
- Different tax rates in each region
- Tampered records
- Physical Inspection
- Fill out dozens of forms.
- Tax evasion
How blockchain-based proof of ownership can simplify the process?
Given the characteristics of a blockchain-based vehicle registration system, existing business procedures can be changed to take advantage of blockchain. A blockchain-based solution for vehicle registration should operate under the tenet that any updates to the vehicle's data are accurate. Vehicle information can be registered to a blockchain-based vehicle registration system that records all data. When a user requests a change, the blockchain checks the records to determine if the appropriate participant authorizes it, and payment for the request is verified. This process uses immutability and blockchain technology to help simplify corporate procedures. Some of the processes that can be achieved through blockchain-based proof of ownership are,
- New Vehicle Registration
- Change of ownership
- Register as guarantee
- Lease certificate
- Vehicle Seizure
- Service intimation
- Auto Insurance
Source: Blockchain-based system for vehicle registration
This is one use case of blockchain technology that explains the ideal approach for advancing digital ownership. Blockchain proof of ownership can be applied to various businesses and provides transparency, decentralization, and cryptographic security. There are many industries, from fashion, athletics, entertainment, supply chain management, and real estate to asset management, etc., where blockchain use cases for proof of ownership have endless possibilities to transform businesses.
If you are looking for blockchain solutions for proof of ownership and traceability for the supply chain, please contact the BlockChainSentry team; we are experts in offering blockchain solutions and products with custom and secured development.