Blockchain Technology Would Be Of Limited Value In Conducting State Business In Vermont – Report

According to a recently released report, the costs and challenges associated with the use of blockchain technology for Vermont’s public recordkeeping outweigh the identifiable benefits.

The legislative report – “Blockchain Technology: Opportunities and Risks” – has been prepared by James Condos, Vermont's Secretary of State; William H. Sorrell, Attorney General, and Susan L. Donegan, Commissioner, Department of Financial Regulation. CoinDesk reported that representatives from the Center for Legal Innovation at Vermont Law School and the Uniform Law Commission also contributed to the report, which was delivered to the legislature on 15th January.

“In light of the very limited possible benefits and the likely significant costs for either entering into a private or public blockchain or setting up a state-operated blockchain, at this time, blockchain technology would be of limited value in conducting state business”, the report said.

The report notes the benefits of the technology saying that it provides a reliable way of confirming the party submitting a record to the blockchain, the date and time of its submission, and the contents of the record at the time of submission, which eliminates the need for a third-party in certain situations.

It said that while the technology offers no assistance in terms of the reliability or accuracy of the records contained in the blockchain, it provides an advantage is in its ability to evaluate the authenticity of records.

Although the committee believes that blockchain technology and the upcoming industry based on it show considerable economic activity and interest, it is unclear what steps Vermont could take to attract any of that activity to the state.

“Vermont is currently a hospitable environment for commerce related to blockchain technology even though the State has not recognized this technology in statute at this time”, it said. “Further study is required before considering it for the regular business of the State, and moreover, any application would certainly need to support rather than replace the existing records management infrastructure”.