Blockchain is a revolutionary force behind digital innovation, not just in America, but around the world. Often associated only with cryptocurrencies like Bitcoin or Ethereum, blockchain technology has a litany of uses beyond digital currency. In the United States, blockchain is driving innovation in industries ranging from video games to government.
For example, the California DMV has digitized 42 million auto titles on the Avalanche blockchain. This initiative will simplify title transfers, combat fraud, and save residents time by reducing trips to the DMV. As Delaware’s leading technology recycler, my company NERDiT NOW is likely to benefit from blockchain, like many other Delaware businesses.
Markevis Gideon | PHOTO COURTESY OF NERDIT NOW
To give some context, blockchain technology is essentially a digitized, immutable ledger that records transactions securely and transparently. As such, blockchain technology enables what are known as smart contracts, in which terms and conditions are pre-programmed and the code automatically executes the terms of the contract once the conditions are met. If you think about it, the possibilities of smart contracts are endless. For a small business like mine, supply chain management, customer data security, and verification of authenticity or ethical sourcing can all be significantly improved through the use of smart contracts.
In my field, tracking the lifecycle of electronic devices is a constant challenge. The nature of blockchain addresses this problem with its inherent quality of transparency and immutability. The financial utility and security of blockchain could also prove fruitful for my industry, as it does for companies across all industries. Additionally, blockchain is undoubtedly the engine of digital innovation. As one might imagine, the increasing digitization of our society benefits technology recyclers. Yet, not all of our leaders in Congress are in favor of harnessing blockchain’s potential.
Washington’s biggest concern regarding blockchain is the Digital Asset Anti-Money Laundering Act of 2023, S. 2669, which is a direct attack on everyday cryptocurrency users. The bill would require those who operate public blockchain networks to register as financial institutions, much like banks. They would be required to record the personal information of every user on the network and create an internal back-up that could freeze any transaction if it was suspected of being linked to criminal activity. This bill is unconstitutional and undemocratic, and would undermine key elements of what makes blockchain a unique innovation.
On the other hand, HR 4763, FIT21, is a step in the right direction. This bipartisan bill, which passed the House of Representatives, brings clarity to the industry by legally defining what a decentralized network is. This clarity will define a path for digital assets to move from security investments to commodities, and will integrate these assets by delineating the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This bill calls for interagency cooperation to provide balanced rules for the industry while protecting consumers in this emerging market. Passage of this legislation will encourage digital asset companies to remain in the United States and could give us a competitive advantage in digital innovation in the future.
As the United States continues to embrace blockchain, it is critical to recognize efforts that could weaken or strengthen it on Capitol Hill. As with any concept, blockchain advocates should not hesitate to make their voices heard by our leaders. For tech recyclers and beyond, blockchain can guide us toward a more responsible and efficient society. I am proud to support the advancement of innovation in America.
Markevis Gideon is the CEO of NERDiT Now.
