Blockchain Technology Moves Forward
Proposed legislation in Ohio would recognize the use of smart contracts and electronic records stored by blockchain technology. Potentially joining the state with Arizona and potentially Tennessee, Florida, and California.
Matt Dolan, a Republican senator in Ohio, introduced legislation that would amend the Uniform Electronic Transactions Act (UETA). Smart contracts will gain the same enforceability as any other contract if the bill passes. Furthermore, users can apply this technology to store electronic records and information. Additionally, the bill would acknowledge that individuals have ownership rights over the information stored using this technology.
Ohio Senate Bill 300
The bill states a few noteworthy points:
- “Blockchain Technology” means distributed ledger technology that uses a distributed, decentralized, shared, and replicated ledger, which may be public or private, permissioned or permissionless, or driven by tokenized crypto economics or tokenless. The data on the ledger is protected with cryptography, is immutable and auditable, and provides an uncensored truth.
- “Electronic Record” means a record created, generated, sent, communicated, received, or stored by electronic means. A record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record.
- “Smart Contract” means an event-driven program that runs on a distributed, decentralized, shared, and replicated ledger and that can take custody over and instruct the transfer of assets on that ledger.
- Notwithstanding any other law, a person that, in or affecting interstate or foreign commerce, uses blockchain technology to secure information that the person owns or has the right to use retains the same rights of ownership or use with respect to that information as before the person secured the information using blockchain technology.
Future of Blockchain and Smart Contracts
Passing this bill would be a significant step forward in creating the legal framework to legalize this innovative technology. Further, it would make Ohio the first Midwestern state to integrate it. Ohio will draw companies looking to utilize this technology, smart contracts, and pay taxes with cryptocurrency over competing markets. Specifically, many of the developmental projects in Detroit have emphasized the preference for the attraction of innovative technology companies. Which is a task that could be difficult in the future if they aren’t able to develop similar legislation.