The government of the Latin American country concluded a partnership with Factom to protect the country from land title fraud. A number of other governments are also interested, says Factom.

The partnership has been agreed on in May 2015 after four months of negotiations, says Reuters. Before the end of the year all the land titles of the Honduran government are expected to be put on the blockchain.

The main reason for this decision is the land title fraud that wreaked havoc on Honduras for many years. According to Peter Kirby, CEO of Factom, “The country's database was basically hacked. So bureaucrats could get in there and they could get themselves beachfront properties.” He believes that using blockchain to build a title record that cannot be changed, the government of Honduras will be able to address all these issues, and others as well:

”This also gives owners of the nearly 60 percent of undocumented land, an incentive to register their property officially.”

The exact details of the project are not yet clear. Cointelegraph speculates that decentralized databases built on top of the blockchain will be accompanied by the centralized ones controlled by “either Factom, the Honduran government, or a combination of the two.” If such structure is chosen, the centralized databases will hold most of the information, and the blockchain will be used just to protect this information from being changed.

Honduras is going to become the second country in the world to run a blockchain-based project, after the Isle of Man with its plans to create a registry of digital currency companies operating on the island. Other governments, however, might follow. Factom blog reads:

“Factom and Epigraph have built a proof of concept for a next generation land title registry. It is currently being evaluated by select governments worldwide.”

Epigraph is a Texan startup specializing in building transparent title registration solutions with the help of the blockchain.