25 Oct Legislation- South Carolina Cryptomining- South Carolina The blockchain news and the current situation and administration. Be sure to specificlaly mention the $500,000 provided to Tre
In this paper, I will be reporting on the Legislation of South Carolina 2021-2022. Apart from that, I will be reporting on the Cryptomining of South Carolina (2021-2022). I will be looking for the SCETA.io website and going through the blockchain news. I will be looking at the current situation and administration of South Carolina. The regulation of blockchain technology and crypto mining. I will have to look for the last half money for the treasure's office.
I am planning to make three sections which include:
- Legislation- South Carolina
- Cryptomining- South Carolina
- The blockchain news and the current situation and administration.
Be sure to specificlaly mention the $500,000 provided to Treasurer Curtis Loftis office for blockchain/emerging technology education in section 3.
Blockchain 2022 Legislation (ncsl.org)– go thorugh this website
1 | P a g e
Blockchain Working Group
Annual Report
December 2020
2 | P a g e
Blockchain Working Group
Ruth Day*
Chair
Commissioner, Chief Information Officer
Commonwealth Office of Technology
Working Group Membership
Jim Barnhart*
Deputy Commissioner
Commonwealth Office of Technology
David Carter
Commonwealth Office of Technology
Karen Wilson*
Public Services Commission
Robert Thorne*
Energy and Environment Cabinet
Josh Keats*
Kentucky Office of Homeland Security
Ashton Barger
Blox Consulting
Wesley Hamilton
Recycladata
Grace Simrall
Louisville Metro Government
James Meece
Louisville Metro Government
Senator Brandon Smith
Kentucky Senate, District 30
Anthony Ellis
Cabinet for Economic Development
Ellie Puckett
Cabinet for Economic Development
Dr. Brian Houillion*
University of the Cumberlands
Christopher Poynter*
Owensboro Municipal Utilities
Designee, Kentucky Municipal Utilities Association
Chris Hayes*
Kentucky Electric Cooperatives
Designee, Kentucky Rural Electric Cooperatives
Adam Koehler
Reversed Out
Clark Snowden*
Louisville Gas and Electric
Administrative Support Alice Lawson
Legislative Research Commission
Karen Chrisman
Commonwealth Office of Technology
* Members appointed or designated in compliance with KRS 42.747
Blockchain Working Group
Background
The Blockchain Working Group is a collaborative panel of subject matter experts defined in Senate Bill 55, and
subsequently codified in Kentucky Revised Statute Chapter 42.747, with the mission to evaluate the feasibility
and efficacy of using blockchain technology to enhance the security of and increase protection for the state's
critical infrastructure, including but not limited to the electric utility grid, natural gas pipelines, drinking water
supply and delivery, wastewater, telecommunications, and emergency services.
The membership of the working group is comprised of nine members defined in KRS 42.747 as well as an array
of representatives from state and local government, public utilities, and private sector business who were
chosen based on their knowledge and engagement with blockchain technology to ensure a broad depth of
knowledge and insight. Through spanning these various government and business sectors, the group can
explore and document those opportunities that place the Commonwealth in the forefront in the support and
usage of blockchain technology as a tool to empower business in the state.
The group convened for the first meeting on September 9, 2020 and has held regularly occurring meetings to
develop the contents within this report based on the mission as defined within the Senate Bill and resulting
Kentucky Revised Statutes. The primary goals of the initial report are to define blockchain in relation to mission
of the working group, provide short term tactical recommendations, and highlight those areas of opportunity
where a more strategic analysis by the working group will be conducted over the next reporting year.
Blockchain Working Group
Report Abstract
Blockchain technology is a highly diverse and robust technology that can empower business through the sharing,
movement and processing of data or transactions in a highly efficient and secure manner. While the most
prevalent use of blockchain technology is digital currency such as Bitcoin, there are significant ways that
blockchain technology that can enhance the integrity and security of systems that support critical infrastructure
such as transportation, public utilities, healthcare, finances, logistics and emergency services. Through the
establishment of the Blockchain Working Group, the Commonwealth is approaching this technology in a
forward-thinking manner to identify those opportunities that can draw to, or empower current business in, the
state.
This Page Intentionally Left Blank
Blockchain Working Group
Report Summary
Blockchain technology is an innovative mechanism for protecting the confidentiality, integrity, and availability of data.
Blockchain is commonly known as a foundation for digital currency, but the technology is well suited for a multitude of
purposes where there is a need to share data or track transaction in a highly secure and efficient manner.
Recognizing the potential of this technology to contribute to the protection of the state’s critical infrastructure and
empower business in the Commonwealth, the Kentucky State Legislature introduced Senate Bill 55 to convene a working
group of subject matter experts to explore this technology and the various ways that it could be used within the
Commonwealth. This bill, later codified in Kentucky Revised Statute 42.747, defined a core group and a clear mission to
help move the Commonwealth to the forefront in the exploration of this exciting technology.
In response to this legislation, the Commonwealth Office of Technology, in collaboration with Senator Brandon Smith,
established the Blockchain Working Group. Using the legislation to guide the establishment of the initial membership and
expanding it to include a range of subject matter experts spanning state and local government, public utilities, private
sector business, and academia, a broad spectrum of expertise and experience was brought together to achieve the spirit
and intent of this forward thinking legislation. This group had their initial meeting on September 9, 2020 and began the
journey that has resulted in this report and set the direction of the group in the future.
Throughout the initial meetings, the group found that the challenge was not finding the opportunities where blockchain
technology could provide a positive impact, it was constraining the scope in a meaningful and manageable way. The
technology itself is so diverse and has the possibility to add benefit to any number of use cases, the group put considerable
effort and careful thought in choosing the key areas where that were the most impactful and where the business sectors
were most capable of exploring ground breaking approaches that could be empowered by blockchain. As a result, five
key sectors were chosen as areas of focus for the group.
Finance
Blockchain technology has its foundations in the financial sector, in the realm of digital currency such as the popular Bitcoin
in particular. While cryptocurrency is a core use case, the transactional and sensitive nature of personal, state, national,
and global finances make it an ideal candidate to see the benefits of implementing blockchain. Ranging from inter and
intra institution transactions to personal finance, there are a number of use cases that can be explored in greater depth.
Records Management
The security and integrity aspects of blockchain technology are well suited for various areas of records management. From
the execution of legal contracts and agreement to professional and occupational licensing, the ability to protect, track,
and validate these documents with tremendous levels of auditing and accountability through the use of blockchain
technology makes this sector another ideal candidate.
Public Utilities
Public utilities such as water and power are the backbone of modern society and represent a sector that is at the very
heart of critical infrastructure. The model for the delivery of these services continues to grow in complexity and relies
increasingly on geographically diverse and disparate technology. Through the efficiency and security gains available with
the integration of blockchain technologies, the delivery and protection of these critical services can be greatly enhanced.
Logistics and Supply Chain Management
The Commonwealth is well positioned centrally to serve as a logistics center for the eastern United States making this a
highly intriguing use case and a potential draw for businesses within this sector. Modern logistics requires the close
collaboration of suppliers, shippers, and receivers makings effective cross communication a vital need to ensure success.
Through blockchain technology, these workflows and communications paths can be streamlined with enhanced integrity
to ensure smooth operations.
Healthcare
The Commonwealth is already home to some of the most progressive and leading healthcare providers and research
entities in the country. The need to share data among facilities and providers is key to facilitate effective and responsive
treatment. In addition, as the nation works through the impacts of a global pandemic, the need to actively share data on
a large scale for trending and research is more apparent than ever. Blockchain can serve as an empowering foundation
for these use cases.
In the report, the working group expanded on the use cases that align to these five areas of focus, with the full knowledge
that they represent the tip of the proverbial iceberg of what can be achieved through the creative use of blockchain
technology. As the technology matures and adoption increases, it is expected that the use cases will evolve and grow
exponentially. While these areas of focus are most prevalent today, the working group will continue to maintain monitor
the larger picture and explore new avenues that arise.
As part of the larger perspective, also included in the report is a summary of the state of blockchain today that covers
initiatives and legislation, pertaining to blockchain technology, at a national level. Combining the use cases in the report
with the knowledge of the benefits and pitfalls experienced by others, the Commonwealth can be well prepared to step
to the forefront and help participate in the business revolution that could be spurred by this technology.
Lastly, while there are tremendous benefits to blockchain, the benefits do not come without risk. The working group has
put thought into identifying those risks. While difficult to quantify, the risk can be considered at a conceptual level while
looking at the efficacy of the technology.
In closing, the initial working group report should be viewed as one of vision and direction. Blockchain technology, while
in existence in some form beginning in 1982, remains a technology in its infancy. Over the coming year, the Blockchain
Working Group will continue the research needed to identify the more tactical and immediate opportunities for the
Commonwealth while maintaining a longer-term search for more strategic opportunities on the horizon. There are
recommendations included throughout the detail report, most of which are exploratory in nature, but one overarching
recommendation is that the Commonwealth should continue this investment and exploration of blockchain technology to
provide real benefit to Commonwealth citizens and to the potential to drive business growth in the state.
Blockchain Working Group
Annual Report – December 2020
Table of Contents
Introduction to Blockchain …………………………………………………………………………………………………………… 1
Potential Use Cases ……………………………………………………………………………………………………………………. 3 Finance ……………………………………………………………………………………………………………………………………………… 3
Cryptocurrency ……………………………………………………………………………………………………………………………………………. 3
Recommendation 1.0 ……………………………………………………………………………………………………………………… 3
Banking ………………………………………………………………………………………………………………………………………………………. 4
Recommendation 1.1 ……………………………………………………………………………………………………………………… 4
Payment Systems …………………………………………………………………………………………………………………………………………. 4
Recommendation 1.2 ……………………………………………………………………………………………………………………… 5
Public Finance ……………………………………………………………………………………………………………………………………………… 5
Recommendation 1.3 ……………………………………………………………………………………………………………………… 5
Records Management …………………………………………………………………………………………………………………………… 6
Contracts …………………………………………………………………………………………………………………………………………………….. 6
Accounting/Auditing …………………………………………………………………………………………………………………………………….. 6
Recommendation 1.4 ……………………………………………………………………………………………………………………… 7
Legal Records and Documents ……………………………………………………………………………………………………………………….. 7
Recommendation 1.5 ……………………………………………………………………………………………………………………… 7
Recommendation 1.6 ……………………………………………………………………………………………………………………… 7
Recommendation 1.7 ……………………………………………………………………………………………………………………… 8
Licensing …………………………………………………………………………………………………………………………………………………….. 8
Recommendation 1.8 ……………………………………………………………………………………………………………………… 9
Public Utilities …………………………………………………………………………………………………………………………………….. 9
Logistics and Supply Chain Management ………………………………………………………………………………………………… 10
Healthcare ………………………………………………………………………………………………………………………………………… 10
Data Analytics ……………………………………………………………………………………………………………………………………………. 10
Recommendation 1.9 ……………………………………………………………………………………………………………………. 11
Medical Research ……………………………………………………………………………………………………………………………………….. 11
Controlled Substances ………………………………………………………………………………………………………………………………… 11
Recommendation 1.10 ………………………………………………………………………………………………………………….. 11
Blockchain Risks ……………………………………………………………………………………………………………………….. 12 Cost …………………………………………………………………………………………………………………………………………………. 12
Lack of Standardization ……………………………………………………………………………………………………………………….. 12
Lack of Centralization …………………………………………………………………………………………………………………………. 12
Regulation ………………………………………………………………………………………………………………………………………… 12
Garbage In, Garbage Out …………………………………………………………………………………………………………………….. 13
Over Exuberance ……………………………………………………………………………………………………………………………….. 13
Recommendation 2.0 ……………………………………………………………………………………………………………………. 13
Environmental Impacts ……………………………………………………………………………………………………………………….. 14
Increased Cyber Threats ………………………………………………………………………………………………………………………. 14
Blockchain Working Group
Annual Report – December 2020
Legislative Analysis 2015-2020 …………………………………………………………………………………………………….. 15 Legislative Summary …………………………………………………………………………………………………………………………… 15
Recommendation 3.0 ……………………………………………………………………………………………………………………. 15
Legislation: Working Group, Study Group, or Task Force …………………………………………………………………………. 15
Legislation: Establishes/Allows Blockchain for Electronic Records, Transactions, and/or Signatures ………………… 16
Legislation: Productive Emerging Tech Economy Act………………………………………………………………………………. 16 Legislation: Defines Cryptocurrency/Blockchain Transactions ………………………………………………………………….. 17
Legislation: Comprehensive Blockchain Acts ………………………………………………………………………………………… 17
Blockchain Working Group
Annual Report – December 2020
1 | P a g e
Introduction to Blockchain
Blockchain is a highly diverse and secure technology with far reaching potential to enhance and empower business and
government. For the purposes of this report, the Blockchain Working Group has adopted the following core definition of
blockchain:
‘Blockchain is an encrypted, secure distributed ledger (decentralized database) system that maintains a digital
record of transactions. Individual records, called blocks, are linked together in a single list, called a
chain. Blockchain is a scalable technology used for recording transactions made with cryptocurrencies, such as
Bitcoin, and it has many other applications such as supply chain and logistics monitoring, data sharing, digital
voting, real estate and auto title transfer tracking, equities and energy trading, and much more.’
Blockchain technology is purposely built to protect the integrity and confidentiality of data used in transactional systems.
In addition to the security benefits inherent in the technology, there are efficiency and trust gains that help foster data
sharing as well as improve the effectiveness and speed of business. Some of these key features are:
• Decentralized Digital Ledger
By design, blockchain does not rely on a single central ledger for the documentation and validation of transactions.
That role is shared among the participants in the blockchain enabled system. This allows the system to be highly
secure, redundant, and robust. Without a single point of failure and with common knowledge of the transactions
across the participants in the blockchain, business continuity and trust in the integrity of transactions can be
assured.
• Industry Standard High Levels of Encryption
Industry standard encryption is inherent to blockchain technology and ensures that data in the system is highly
protected from exposure or alteration while in transit throughout the system and among the participants in the
blockchain.
• Transactional Trust and Nonrepudiation
The design of blockchain imparts an inherent trust between the participants and helps ensure the integrity of the
transactions by preventing the interception, alteration, or injection of transactions in the blockchain that cannot
be validated by the decentralized ledger. Any alteration of any block of the chain will invalidate the entire
blockchain.
• Low Latency Peer to Peer Transactions
Without the requirement that an intermediary server or authority validate the transactions, and with the ability
of participants to communicate directly with each other, the flow of data is greatly improved. This simplifies the
data flow and removes additional steps in the data path while maintaining the integrity and trust of transactions.
• Public and Private Options
Public blockchains do not rely on a central authority to grant permission to participate in the blockchain to read,
write, or proof transactions in the blockchain. One of the most common uses of public blockchain is digital
currency such as Bitcoin but can be ideal for any public use system where broad public participation is needed.
Private blockchains are restricted networks that require a central authority to grant permission to participants to
Blockchain Working Group
Annual Report – December 2020
2 | P a g e
read and write transactions in the blockchain. This would be most applicable to use cases such as critical
infrastructure where the security and efficiency of blockchain is needed but requires high levels of control over
who can participate in the blockchain.
Blockchain Working Group
Annual Report – December 2020
3 | P a g e
Blockchain Potential Use Cases
The efficiency and applicability of blockchain can be realized across any number of business and government sectors.
Many public and private sector entities are exploring the efficacy of blockchain. The Commonwealth has taken the bold
first step in establishing the Blockchain Working Group setting a path to explore the opportunities that this technology
may offer. Some of these possible opportunities are:
FINANCE
The world of finance is entirely transaction driven. This is the ideal environment for blockchain to have a positive im
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Wridemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.