Delaware wants to put company share registration on blockchain

Rage Comment : Delaware wants to determine the legal classification of blockchain technology applications through state law adjustments to achieve the use of blockchain to register new companies, and the governor also intends to relax the license. The most senior legal professionals in the domestic blockchain industry said that Delaware's attitude is very important. Nearly 80% of companies in the United States are registered in Delaware, so if it allows the issuance of blockchain shares, it will definitely be a major positive. Delaware's corporate law and court decisions are close to the status of the Bible in the American corporate world. This may greatly promote the application of blockchain technology. In addition, smart contract startup Symbiont will also participate in the construction of Delaware's blockchain application project.

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Delaware wants to establish legal classification of blockchain

The U.S. state of Delaware is trying to use blockchain technology to reduce the cost of registering new companies and simplify cumbersome paperwork procedures.

The system, which is being prepared in partnership with Symbiont (a startup focused on smart contracts) and New York law firm Pillsbury Winthrop Shaw Pittman, will enable the development of company registries, track share movements, and use a digital platform for communication between shareholders.

Currently, Delaware is in the initial stages of the project. Before companies can register using blockchain, the state bar association needs to think carefully and make relevant adjustments to state laws. In addition, whether the Bitcoin blockchain can be used in this process has also become one of the concerns.

Delaware Governor Jack Markell expressed his views on the initiative at the 2016 Blockchain Consensus Conference. He told the attendees that Delaware currently has no plans to require licenses from digital currency companies, which is also an endorsement of the creation of the New York Bitcoin license.

In particular, Markell believes that governments should promote the development of a new type of legal share, known as a “distributed ledger share.”

He told the attendees:

“Distributed ledger shares may enable instantaneous clearing, instantaneous settlement, and could significantly increase efficiency and increase commercial transactions in Delaware.”

We trace the project back to the mid-2000s, when Delaware lawmakers amended state law to begin replacing the paper process of registering companies and tracking the fate of their shares with electronic means.

Delaware is currently expected to implement other blockchain initiatives, including a project with the Delaware Public Archives in which Symbiont will develop a suite of software to digitize archival records.

Mark Smith

Symbiont CEO Mark Smith said in a statement:

“Automated data recording is an important use case that demonstrates the transparency and efficiency of smart contracts and can be applied by both the public and private sectors.”

The Delaware government wants to apply this technology to other areas as well. According to Governor Markell, the project will eventually be carried out under the name of "Delaware Blockchain".