This Thursday, the 28th of September, a newly set up Maltese company called Ledger Projects will be launching its first Distributed Ledger Application targeted at property transfer management. This blockchain application was created by technologist David Schranz and businessman Anthony Mamo who spent twenty (20) months conducting research, testing and developing it. The team at Ledger Projects is being supported by Abdalla Kablan, who is a renowned entrepreneur and a widely respected scientific expert specialising in fintech and artificial intelligence. The company has also announced that it has plans to deploy another two applications at six-month intervals.
Understanding Blockchain Technology
What is blockchain? Blockchain is more commonly known as the technology which supports cryptocurrencies such as Bitcoin. It is a technology that creates an incorruptible digital ledger of economic transactions, but which can also be programmed to record not just financial transactions but virtually everything of value. Since Blockchain relies on decentralised networks, it can better withstand malicious attacks since there is no central point of failure. Moreover, any changes made to public blockchains are publically viewable by all parties, thus safeguarding the transparency of transactions and ensuring immutability since no transaction can be altered or deleted.
It has also been defined as a digitalised trust because it allows two parties to make an exchange without the oversight or intermediation of a third party, thus strongly reducing and potentially eliminating counterparty risk.
Malta's first Blockchain Application
The first locally-built application created by Ledger Projects was created with the aim to facilitate the process through which property is transferred. All Promise of Sale agreements which are signed before a notary and other public contracts related to the property transaction shall be put on a blockchain which is unalterable, and which is accessible to all notaries.
The platform will also offer a 'business inheritance tool' which will allow the authorities to access real-time information on sales of properties in Malta. Thus they will be able to monitor the localities which experience high rates of property transfers and at which prices the properties are being sold.
Malta - the Silicon Valley of Europe
While several European regulators remain wary of financial technology, the Maltese government has not only embraced it, but it has also set up a blockchain strategy and is gearing up to become the ‘Silicon Valley of Europe’. Malta is ready to be one of the pioneers that embrace this crucial innovation by being the first European country to regulate the industry.
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Our Fintech Practice
Our lawyers and financial services specialists at Chetcuti Cauchi Advocates welcome the innovations which the financial services sector is currently and seek to provide bespoke solutions to our clients by fusing together traditional legal notions with new technologies. Led by Senior and co-founding Partner Dr Maria Chetcuti Cauchi, our Fintech practice strives to assist clients in this burgeoning and evolving sector of law which shall reshape the financial services sector as we know it.
