Using in Georgia Papuna Ugrekhelidze, Chairman National Agency of Public Registry Washington DC, USA March 22, 2017

National Agency of Public Registry 2 Legal Entity of Public Law under the Ministry of Justice of Georgia, established in 2004 Registry of Immovable property Rights Registry of Lien, Tax Lien/Mortgage Business Registry Pledge Registry Address Registry Registry of Political Parties Geodesy and Cartography National Agency of Public Registry is a Legal Entity of Public Law under the Ministry of Justice of Georgia. It was established in 2004 and led to the creation of a new, successful registration system in the country. The main functions of the National Agency of Public Registry are: registration of rights to immovable property, entrepreneurial and non-entrepreneurial (non-commercial) legal entities, addresses, public-law restrictions, tax lien/mortgage, political unions of citizens, municipalities, as well as development of National Spatial Data Infrastructure, geodesy, mapping and cadastre. Cadastre

Achievements 3 Customer-oriented, corruption-free and highly efficient registration system Registration Procedure simplified and streamlined One-stop-shop service established Customer service decentralized, authorized users’ service introduced Well-functioning IT Infrastructure established Establishment of the National Agency of Public Registry was the most important step taken towards the systematization of the real estate related information in Georgia. However, it inherited some serious problems. Difficult situation made it essential that a customer-oriented, transparent, safe and unified registration system be created. With this purpose comprehensive changes and reforms were implemented in the Agency in four major directions: legislative, institutional, administrative and technological. The emphasis was put on making registration procedures simpler and using modern information technologies. As a result of the reform, one-stop-shop principle has been introduced, registration procedure has been simplified, customer service has been decentralized and authorized users’ service has been introduced. NAPR has a solid software infrastructure and a customer friendly modern e-land administration. It has one of the most advanced and experienced IT Department providing its service not only NAPR but to other government agencies as well. E-governance principles implemented, e-services introduced

Immovable registry ensures transparency and security of registration data at the same time. The proof of registration of immovable property is the Extract from public registry, which can be reached electronically via NAPR website from any place around the world. Each document has its unique number and does not need official seal or signature for official purposes. NAPR is using German-based title standards. The Extract consists of all main data about the entity, responsible persons, partners, public-law restrictions, etc.

Registering Property 16 11 3 2 1 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Efficiency and success of NAPR activities is confirmed by various international rankings. Georgia has a leading position in the World Bank Doing Business Rankings. Doing Business is a project initiative of the World Bank and International Financial Corporation. By the ease of property registration Georgia has been ranked as number one country in the world four years in a row. Country is consistently promoted in the rating systems of the World Bank every single year since 2006. According to the World Bank Doing Business Survey 2017, Georgia ranks 3rd place by ease of Registering Property and 6th place by Starting a Business.

New Era of Internet – Blockchain Global Blockhchain Network (GBN)- protected from cyber attacks and physical destruction Distributed database Time stamped blocks Linked blocks Blockchain is a distributed software platform, which means that the records are not kept in one particular place, but hosted by millions of computers simultaneously and therefore the data is accessible any time on any computer which guaranties its transparency. Approximately every 10 minutes a new block is created, which then is added to the previous one and they are linked through a complex mathematical algorithm. The blocks are connected to each other like a chain. One of the advantages of the distribution is the security from cyber-attacks as well as physical destruction. In the cases of suspicious manipulation all the computers check the action and block it. The crash of one of the computers does not mean the loss of the data as it is still stored in all other ones. Automatic block of the suspicious manipulations

Cooperation with BitFury Group I Phase – Pilot Project The works on integrating registration services in Blockchain started in 2016, when the BitFury Group took interest in the leading position of Georgia in the World Bank Doing Business Rankings. The first phase of cooperation with the BitFury Group involved development of the pilot project on using Blockchain technology for immovable property registration and technical and other preparatory works for launching the project, which has been successfully completed.

Blockchain for Property Registration – Georgian Case Blockchain technology ensuring security and reliability A unique hash assigned to an immovable property title The innovation means to assign a special hash to the immovable property title. The hash is a sequence of symbols, which is unique for each document if the same algorithm is used. The identical hashes in the Blockchain system and NAPR website confirm authenticity of the title.

Data on Blockchain is Impossible to: Delete Alter Rewrite Illegally manipulate Information about the extract on any immovable property is automatically sent to the Blockchain system. It is impossible to delete, alter, rewrite or illegally manipulate the data stored in Blockchain.

Blockchain Increases Data Security Transparency Accessibility Reliability With Blockchain, NAPR makes information on immovable property even more secure, transparent and accessible around the world. Any person can check authenticity of immovable property extract in the Blockchain network via the special website www.blockchain.info, www.blocktrail.com, www.btc.com

Renewed Titles in Blockchain Network Internet Territorial offices of NAPR Public Service Halls (PSHs) Community Centers The old extracts, i.e. those prepared till 20th of February, 2017, are possible to store in the Blockchain system upon their renewal. The information on the renewed title automatically will be stored in the Blockchain global network. The title can be renewed via internet or at the territorial offices of NAPR, Public Service Halls and Community Centers.

Moving to II Phase Introduction of smart contracts NAPR launches the second phase of cooperation with the BitFury Group from 2017, which envisages enactment of the pilot project and introduction of the smart contracts. The terms of smart contracts are recorded in a computer language and consequently, smart contracts can be automatically executed by a computing system. By placing a smart contract on a public, s Blockchain, control over the execution of the agreement would no longer be in the hands of a single party (e.g. a bank) and interaction would no longer be limited to closed systems.

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