Vermont Legislature Blockchain Report: Opportunities and Risks

On the 15th of this month, the Vermont State Legislature received a report titled "Blockchain Technology: Opportunities and Risks", which pointed out that the current cost of integrating blockchain technology into public record management systems is too high and may exceed the potential benefits.

The report, written by Vermont’s secretary of state, attorney general and financial regulators, with participation from Vermont Law School’s Center for Legal Innovation and the Uniform Law Commission, was prepared as part of a broader legislative effort in the state to promote economic growth.

The report believes that blockchain technology is indeed beneficial to the public management system, for example, it can record and verify when and by whom a public record document was entered. However, the report also raised various objections to the cost of establishing a public management system supported by blockchain technology, such as how to operate such a system for storing electronic records within the legal framework of Vermont, and why it is necessary to establish a blockchain-based system when everything is working well at present.

The report states:

Given the limited benefits and potentially high costs of using a private or public blockchain or establishing a state-run blockchain, there is currently little value in using blockchain technology for state management.

Although the report expresses opposition to the establishment of a blockchain-based public record system, the authors still agree that blockchain can provide protection for data records, such as preventing forged or erroneous records.

“If it is the same document, then the hash value registered outside the blockchain should be the same as the hash value registered inside the blockchain. If it is not the same document (e.g. due to forgery, corruption, error or other problems), then the two hash values ​​will not match. Therefore, blockchain has the ability to provide an immutable registration protection for records, which can provide authenticity comparison for future records.

The report also noted that attracting companies engaged in blockchain technology research and development to Vermont could bring economic benefits to the state.

"Whether there is legal recognition or not, technological innovation will continue, and if Vermont can be a region that supports economic and technological innovation, then to some extent, embracing this technology early may bring economic benefits to the state."

The report does not rule out the possibility of a state-run blockchain system in the future, suggesting it could be used to expand existing methods of public recordkeeping.

The report concludes:

“Further research is needed before a decision is made to use blockchain technology for state administration. Any application would be intended to support, not replace, existing records management infrastructure.”

Original article: http://www.coindesk.com/report-blockchain-record-keeping-system-too-costly-for-vermont/
By Stan Higgins
Translator: printemps
Editor: printemps
Source (translation): Babbitt Information (http://www.8btc.com/vermont-blockchain-report)