Real power comes from those who grow on this land and share common values. The Celestial Record simply constrains this power through specific rules and transfers it to someone for enhancement.
And it's not just about enhancement. Aside from the Celestial Record system, the Immortal Palace, after establishing dominance in the world back then, also produced thirteen volumes of celestial records.
But the celestial records weren't about bestowing official titles; they were for recording all the free practitioners in the world who cultivated on their own and obtained powers beyond the established order. These individuals would be registered and filed.