Delaware is making moves to advance its use of blockchain technology. The state has signed a $738,000 contract with IBM to work on a blockchain-backed corporate filing system. If successful, the system could be the basis for Delaware to maintain its primacy as the corporate headquarters of the US.
News of the contract was first reported by the Delaware News Journal.
Delaware has been working with consultants from IBM for several months on blockchain planning. The state is working with IBM on two pilot projects targeted at a small number of corporations to see if registration can be streamlined and secured with the technology. Proponents of blockchain also claim that the technology could cut down on human error in filings and updates.
According to the Delaware News Journal, if the initial pilot projects work out, the state will look at making it a systemwide platform. The current contract with IBM is not budgeted for IBM to build a systemwide platform.
The state said it was working with IBM on the initial consultation because the company is a leader in blockchain technology development.
Delaware is under pressure from several states that are trying to draw lucrative corporate registrations with different filing incentives. Currently, Delaware has more corporate headquarters than it has people. Corporate registration and filing are a key revenue driver for the state and also support the local legal and business services sectors.