The state of Massachusetts is considering taking its property records storage practices into the future, specifically with an eye toward blockchain technology.
A bill introduced by Rep. Kate Lipper-Garabedian (D-32) would, if passed, “explore digital innovation in government” by directing the Massachusetts Technology Collaborative (MTC) to study the potential of property record storage on the blockchain.
A blockchain is a digital ledger that records and stores transactions in a secure, transparent, and immutable way. It's a decentralized system that uses cryptography to prevent tampering and hacking. Blockchain technology is commonly known for being used to power and generate cryptocurrencies like Bitcoin.
The bill, HD 309, would direct the MCT to establish a pilot program for this purpose within one year of the bill going into effect, and would be required to use at least one registry of deeds in the process.
The pilot program would test distributed ledger technology as a redundancy-driven concept to be used parallel and as a backup record to the current recording system. The MCT and the participating register or registers of deeds would further be directed to identify legal impediments that must be modified to accommodate blockchain-based recordation of real property interests.
No later than 12 months after the conclusion of the pilot program, the bill would require a report to be compiled, including an evaluation of the pilot and an assessment of the feasibility and advisability of the deployment of blockchain technology to support storage of real property records. This report would be filed with the clerks of the house and senate, the joint committee on advanced technology, the internet and cybersecurity, joint committee on municipalities and regional government, joint committee on state administration and regulatory oversight, and the house and senate committees on ways and means.
HD 309 has been filed in the 193rd General Court of the Commonwealth of Massachusetts and has not yet been referred for committee review.