BLOCKCHAIN IN PROPERTY RIGHTS AS A STATE INSTITUTIONS TRUST STRENGTHENING FCTOR

Abstract

Introduction. In the context of digital transformation, the task of strengthening trust in government institutions acquires a new dimension. The author examines the problem of building institutional trust in the field of property rights. By analyzing the role of blockchain in regulating property rights in real estate, financial assets, and intellectual property, the author seeks to demonstrate how digital registries influence the level of trust in state institutions.

Materials and methods. The methodology is based on theoretical-legal, political science, institutional, and structural-functional analyses of digital institutions. The study employs descriptive analysis, comparative analysis of international cases (Propy, ChromaWay, Stellar, Verisart), the case study method, the historical approach, as well as methods of systematization and interpretation of practical examples of blockchain implementation in the field of property rights.

Results. The analysis of the most promising areas of blockchain application in the field of property rights – real estate, financial assets, and intellectual property – has made it possible to view blockchain not only as an innovative IT solution, but also as a factor in strengthening institutional trust.  the blockchain-based systems, trust shifts from specific officials to the procedure itself – to the immutability of records, transparency, automation through smart contracts, auditability of operations, and integration with state registries. Institutional trust increases as real estate transactions become more transparent, corruption risks are reduced, registration and re-registration of rights are accelerated, and transactional and administrative costs related to settlements and tokenization are lowered. The verifiability of ownership rights improves, the share of disputed transactions decreases, and the costs of legal recognition of digital records are reduced. Thus, blockchain contributes to the formation of institutional trust based on clearly defined procedures.

Discussion. Digital infrastructure is gradually becoming an independent factor influencing institutional resilience. Further research is needed to analyze the institutional risks associated with the use of blockchain technology, particularly those arising from the legal uncertainty of electronic records, the complexity of personal data protection, and the insufficient coherence of regulatory frameworks.