Delaware, home to more companies than people, appears to be overcoming a reluctance to blockchain, the most hyped financial technology in recent memory. Delaware officials in the coming months will introduce two blockchain-based pilot projects into a sliver of their lucrative corporate franchise business. Consultants from IBM are working as advisers after the state’s partnership with blockchain startup, Symbiont, collapsed in recent months with that company’s CEO claiming the state was playing “politics.”
Starting with a “small universe” of corporate filings, the state will use the pilot projects to gauge how the blockchain may benefit Delaware-registered entities, and consequently buttress the state’s dominance in the corporate franchise business. The decision comes just as Wyoming – in its years long chase to overtake Delaware’s corporate dominance – is set to adopt a blockchain system into its own corporate registries.
Absolutely blockchain can be disruptive but we all need to figure out how to use that disruption positively so that it can enhance our businesses
– Doneene Keemer Damon, a Delaware Finance Attorney
Blockchain has already sparked a flow of hundreds of billions of dollar into new companies and cryptocurrencies in recent years. Many investors predict that the blockchain will bring innumerable efficiencies into the economy – including doing away with a cumbersome process of manually filing legal records with the state of Delaware.