New Nevada blockchain law explained

RENO, Nev. (KOLO) - If you haven't heard of a blockchain, you soon will. Most commonly associated with Bitcoin, a blockchain is used to establish various financial transactions of the cryptocurrency.

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Each block contains a certain amount of transactional information, like a time stamp, and is linked to a previous block. The blocks are related in that they contain some information together but not all information. The data in the block cannot be altered, and therefore the system is impenetrable.

“It is a baseline technology you can build a lot off of,” says State Senator Ben Kieckhefer.

Bitcoin is just one example of where blockchains are used. Real estate, banking, even health care, can and do all use the system.

During last year's legislature, Kieckhefer he introduced legislation he says encouraged the IT industry to consider Nevada as a home base.

Senate Bill 398, he says, lets companies know their transactions will be recognized by the state.

“We have a definition written into our statues that is broad enough over time to evolve over time as the technology evolves. But also it incorporates smart contracts into our electronics records law. So smart contracts would be a transaction done automatically and done over a blockchain, and those transactions are going to be recognized in our statue and by our courts--making it a safe place to do business,” says Kieckhefer.

Nevada, he says, is one of the leaders in developing and crafting laws that keep up with the latest in this kind of technology.