Motor vehicle departments are already moving to this.
No reason it can't work for more expensive assets - especially with centralized authorities doing the signing.
Yes. Changing databases doesn’t change anything. The person who holds the digital token may have obtained it fraudulently, or someone else before them in the chain.
What you might be suggesting is a centralised property record. Most countries have this. But that comes with other yradeoffs.
It's a fraction of the interest I will pay on a relatively small loan, so I can't say I was real animated about it, but you are just asserting that there is a lot of risk in the average transaction.
Likely the previous title policy (and now yours) specify that they only provide coverage as long as the policyholder themselves owns the property. Otherwise your lender could be mostly satisfied by a warranty deed from your mother ('s estate). That's the hook that makes it into a racket of perpetually leeching off every transaction rather than a one time expense to perform legitimate diligence.