Arizona bill will allow Arizona corporations to have and share data on a blockchain

Arizona governor Doug Ducey signed a new bill on April 3 that will allow Arizona corporations to hold and share data on a blockchain.

The bill was first introduced by representative Jeff Weninger. It amends the Arizona Revised Statutes to legally recognize data written and stored on systems using blockchain technology.

The bill was passed quickly

The Arizona House of Representatives passed the bill in just over a week, eight days after it was introduced. About a month later the Senate also passed the bill unanimously. In the House four Representatives abstained or voted against the bill. The bill was signed within a few days of reaching the governor's desk.

Arizona has passed a previous blockchain law

Arizona had for a year already begun to recognize signatures as recorded on a blockchain and smart contracts as legal documentation. The governor signed a bill to this effect in March of last year: "The measure was first introduced in early February, seeking to enshrine signatures recorded on a blockchain and smart contracts - self-executing pieces of code - under state law. Specifically, the bill aimed to make those types of records "considered to be in an electronic format and to be an electronic record"."

The text of the bill read in part: "A signature that is secured through blockchain technology is considered to be in electronic form and to be an electronic signature ... A record or contract that is secured through blockchain technology is considered to be in an electronic form and to be an electronic record."

In some respects the law mirrors that of a bill passed in Vermont some time ago that would make blockchain data admissible in court. The Vermont bill specifically noted that data tied to a blockchain would be a fact of record.

Other states also have passed blockchain legislation

Many US states are showing interest in blockchain applications even though some are still suspicious of associated cryptocoins.

Delaware back in 2017 passed similar measures to those in Arizona recognizing blockchain signatures and smart contracts as legal. Its legislation also provided a legal basis for trading stocks on a blockchain platform.

In New York state as well, four bills have been introduced with the aim of evaluating blockchain applications to be used for data storage.

In Nebraska a bill was introduced earlier this year that will, if passed, allow the state to recognize smart contracts and documents stored on a blockchain. It would also allow the state to adopt distributed ledger technology and authorize and define smart contracts.

Blockchain technology is explained on the appended video

Previously published in Digital Journal

Walmart files patent for blockchain based shipping platform

Walmart has filed a patent application for a "smart package" that will enable the company to track products sold more efficiently and also better authenticate customers.

Walmart's "smart package"

In spite of many governments and business enterprises being skeptical about cryptocurrency and blockchain technology, there are increasing applications of the technology to business enterprises and to the public sector as well. Now the retail giant Walmart has decided to try out the technology. Walmart is the top retailer in the world by revenue.

Walmart describes its new system as a "smart package" that would operate on what would be presumably a private blockhain that Walmart itself would develop.

In the US, publication of a non-provisional patent application occurs 18 months before it earliest effective date. However, once a patent application is filed the patent office can reject third party applications for related technology.

Walmart's reason for developing the system

The application document also says:“Many customers shop online for various reasons include (sic) ease of shopping, comfort of shopping, to save time and any number of other reasons that customers may have for shopping online. These online customers many times seek to purchase items that may require a controlled environment and further seek to have greater security in the shipping packaging that the items are shipped in. Current shipping packaging does not provide for such desired functionality.”

Features of the new system

Among the benefits of the blockchain-based system is that it would provide a more convenient way for customers to identify themselves as the person who ordered the product. The "smart package" would have a monitoring device attached that could detect when a parcel was opened. It would update its status when opened.

According to the application, the blockchain will record the "key addresses along the chain” . This will include “seller private key address, a courier private key address, and a buyer private key address."

Also according to the application the smart package would contain: " a device which would record information on a blockchain regarding the contents of the package, its environmental conditions, its location and more. It also suggests that its smart package could be used in tandem with other emerging technologies including “autonomous vehicles,” such as drones."

The patent was first filed in August of 2017. Walmart had already submitted a patent application for a blockchain-based drone package delivery system in 2017.

Walmart's use of blockchain technology in China

Towards the end of 2017 Walmart partnered with IBM in a move to improve food safety in China using blockchain technology.

If the project is competed , customers will be able to track the journey that their food made to the store from which they purchased it.

Previously published in Digital Journal