Delaware Governor John Carney has signed a new law that will allow Delaware corporations to manage corporate records using blockchain. Blockchain is distributed ledger technology that gives users the ability to conduct verified and relatively secure transactions with counterparties.
Blockchain is most widely known for being the ledger that manages Bitcoin and other cryptocurrency transactions. However, developments in the technology have also created solutions for businesses like smart contracts, which are essentially rules-based virtual contracts. Delaware’s bill allows corporations to use blockchain based records as “verified data” or data that will meet state laws and reporting requirements.
Delaware is one of the first states to consider such legislation, but it is also a critically important one for corporate rules. Many of the corporations in the US are based in Delaware and governed by Delaware law. Proponents of the bill and blockchain say that it is a historic milestone in the adoption of blockchain technology for Delaware to have approved the bill.
The bill is part of a broader plan started at the state level in 2015, which is examining how best to use new technologies for administrative efficiencies in the public and the private sectors in Delaware.
The full text of the blockchain bill can be found here.