As digital currencies like Bitcoin, and the underlying technology behind them, blockchain, push for wider acceptance, one of the issues that often comes to the fore is the notion of trust. By their very nature, a digital currency operates outside of the existing system that people are used to. That brings much of the benefit of Bitcoin and other currencies of course, but is also an issue for new potential users where the issue of trust still brings issues. However, Vermont recently passed a bill through both its House and Senate that would give documentation notarized by blockchain legal recognition. This should be the first step on establishing trust while retaining the benefits of being external to the current system, and could have significant impact on the industry.
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One of the issues with digital currency from the beginning, in terms of wider appeal, is that they are by their nature, outside the normal systems that people are used to and comfortable with. This is arguably one of the biggest obstacles to overcome for cryptocurrencies, and yet remains something of a balancing act. Being outside of the existing system is exactly why Bitcoin and other digital currencies are so flexible, however, it is also a deterrent to the general public, and overcoming that, building trust, is the route to wider adoption.
That is why a new economic development bill that was just passed by Vermont House and Senate is so important. Within it is a small legislative clause that would make a fact or record that is verified through blockchain technology considered “authentic”. That means any document notarized using blockchain, whether that is Bitcoin or another use of the technology, is considered legally admissible in court and have full legal bearing.
While a small step, the validation of blockchain, and digital currency, through the Vermont court system should not be underestimated, while it also opens the door to further applications of blockchain within Vermont infrastructure in the future. As a stepping stone to wider acceptance, the acknowledgment of blockchain authorization could spread to other states with a successful implementation here.
It should also be understood that the implications for the industry itself are broad, we have seen many new initiatives to use blockchain for authentication, such as artwork and other documentation, and with this move, it will be possible to use such evidence in court, which makes other projects based on similar applications more viable too. The broader the coverage blockchain receives, the more the industry benefits, and initiatives like this suggest that the future is indeed bright for the cryptocurrency industry.