The New Jersey Assembly recently passed legislation that would legalize cryptocurrencies and associated exchanges within the Garden State.
The bill, sponsored by Assemblymen Christopher DePhillips (R-40) and Andrew Zwicker (D-16), was designed to expand the use of secure blockchain technology. The full Assembly unanimously approved the measure in a 72-0 vote.
“We need to use the technology at our disposal to ensure our information is safe,” said DePhillips.
A Primer on Blockchain
“Businesses looking to strengthen data privacy and prevent hacking in their recordkeeping systems could benefit from using blockchain technology,” added Zwicker.
A blockchain is a ledger where the transactions of cybercurrencies (like Bitcoin) are recorded, acting a chain of digital blocks that contain transaction records. Each block is connected to those before and behind it, making tampering efforts difficult.
Each chain is encrypted, and requires synchronization with the entire peer-to-peer network to ensure transparency and validity. This security feature makes blockchain record keeping nearly incorruptible.
Use in New Jersey Business
“Blockchains help protect information and simplify data collection to help businesses perform more efficiently. Beyond the convenience aspect, the security of blockchain technology may be useful in industries that store sensitive information, including healthcare, banking and government agencies,” said Zwicker.
DePhillips noted that by allowing New Jersey businesses to use blockchain, it would protect data while ensuring transparency of the data. Walmart and Microsoft already embraced the technology, and New Jersey’s businesses could benefit from its use.
The bill was moved to the Senate for further deliberation.