As we continued to be mired in a world of FUD, traveling under the radar is some good news.
The Governor, Bill Haslam signed a bill into law on Thursday that officially recognized blockchain for electronic transactions and gave smart contracts legal rights.
Blockchain technology is defined in the bill as “any distributed ledger protocol and supporting infrastructure, including blockchain, that uses a distributed, decentralized, shared, and replicated ledger, whether it be public or private, permissioned or permissionless, and which may include the use of electronic currencies or electronic tokens as a medium of electronic exchange.”
This is exciting news. This new law makes cryptocurrencies a valid unit of exchange in the state of Tennessee. Essentially, it puts it on par with the USD in this regard.
We are starting to see pieces of legislation like this emerge from around the country. While the Feds have taken a mostly hands off approach (which is a good thing), the states are beginning to move to recognize cryptocurrency as a medium of exchange.
Wyoming recently established a new classification for cryptocurrency, specifically utility tokens and there are a number of other states with bills in their state houses.
The smart contract aspect of this law is also encouraging.
A smart contract is defined in the bill as an “event-driven computer program, that executes on an electronic, distributed, decentralized, shared, and replicated ledger that is used to automate transactions.” The bill notes that “no contract relating to a transaction shall be denied legal effect, validity, or enforceability solely because that contract contains a smart contract term.”
Essentially we see smart contracts placed at the same legal level as any other contract. This is important because the legal arena is based a great deal on precedent. Getting this on the "books" allows others to cite it for future legislation.
It is difficult to be patient with what is happening but it is going to take millions of actions on every level before blockchain and cryptocurrency reach their potential. When technologies go through the hype phase, it is usually because the excitement surrounding it takes place without the ground level work being completed.
When the hype "pops" and the media turns away, that is when the "real' work begins. This is a big reason why it is crucial to not watch the pricing action of STEEM but what is being developed and created. It is overwhelming to try and keep up with all that is taking place on this blockchain. Each day, it appears that there is something new.
And part of the process, unfortunately, is for the governmental entities to throw in their two cents and write laws for or against. It is good when we see laws that come out protecting blockchain and cryptocurrency. This helps to build a solid foundation.
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