The legal power to utilize blockchain technology in executing electronic trading has been acknowledged to be legal and the legal document was signed by the governor of Tennessee.
This new legal paper also entails that the proprietors’ rights of particular data protected by the blockchain technology are safeguarded under the country’s judicial system.
The acknowledge of blockchain technology acknowledged by Tennessee legislature New Law
In efforts to legally acknowledge transactions executed through the use of blockchain, the general assembly of Tennessee has enacted a new bill towards that effect respectively. This also includes rights of the owner in relation to information protected by decentralizing ledger technology.
In addition to the above, the legal paper describes the controversial blockchain platform as a decentralized ledger technology that makes use of a duplicate, shared, distributed and decentralized technology which might be in the form of the following: either without tokens or operated by a virtual currency that is govern by tokens, or it being restricted with permission required or not restricted without the need for a permit, last but not the lease it can be either open to the public or otherwise close to the public, in other words, private.
In addition to the above, the legal document continues that, the information found on the ledger is secured with cryptography which can be described as unchallengeable and auditable. Moreover, it will also offer a discreet honest fact, according to the bill.
As outlined based on this latest regulation that, that endorsement done via signature writing is of the view that it is in an electronic form and thus be term as an electronic signature in the court of law. As well as, the same consideration for an electronic form or record to be recognized in the country’s judicial system, is given to a contract or record that is protected via blockchain technology respectively.
The Tennessee law permits smart contracts as well
As described to be an “event-driven program”, that operates on a duplicate, shared, distributed and a decentralized ledger that would take ownership of it and commands distributed of assets on that ledger, in the latest bill that accepts smart contracts in having a legal authority.
The bill details that “Smart contracts may exist in commerce,” continuing that “an event-driven program” that operates on a duplicated distributed, shared and decentralized ledger and that can take ownership and “instructs transfer of assets on that ledger” as reported by NewsBitcoin.com
The legal document has been solidly passed in the states parliament which makes it a huge leap to making the controversial virtual currency legitimate, ever since its announcement in January.