Delaware law allows companies to use blockchain for record keeping
- Delaware Gov. John C. Carney Jr. signed a bill Friday that will allow corporations to maintain shareholder lists and other corporate records using blockchain technology rather than spreadsheets or other types of programs, according to Fortune.
- Companies must, by law, maintain a list of shareholder names, but traditional ways of doing so often lack strong security.
- The law is significant in Delaware because more than two-thirds of Fortune 500 companies are incorporated in that state.
Blockchain creates a trusted system of record that has never been possible before. And as the technology grows in acceptance, companies and government agencies are becoming more interested in the ways it can be employed.
Experts predict blockchain could even eventually replace the current system of corporate record-keeping. The technology is not only secure, but enables streamlined processes and better efficiencies which can often result in cost savings.
Some analysts have said blockchain is more hype than reality. But companies like IBM and Microsoft are investing big in the technology and services that can help businesses take advantage of it. Last month, Microsoft introduced Enterprise Smart Contracts, a tool designed to make it easier for enterprises to build on its blockchain as a Service offering.