Delaware to Adopt Corporate Filing System Based on Blockchain
IBM has been awarded a contract worth USD 738,000 to develop a corporate filing system based on blockchain for the state of Delaware. Delaware is an incorporation hub where US companies are first registered due to its favorable tax incentives. As such, it is important that all records are well maintained, and that the process is streamlined.
Corporate franchise makes up nearly 25% of the states total revenue. Delaware is home to over one million corporations including 64% of Fortune 500 companies. Human errors in record keeping are detrimental to the USA’s primary state of incorporation.
A filing system based on blockchain
Using the funds, IBM will design a prototype corporate filing system based on blockchain and Delaware will then work on implementing it. It should potentially make it easier for companies to get registered in Delaware. Distributed ledger technology (DLT) has the capability of vastly reducing administrative costs. The UAE expects to save USD 3 billion on document processing and a reduction of hours worked.
According to the deputy secretary of state Kristopher Knight, the introduction of technology projects often costs US states twice as much as initially budgeted due to improper planning. Because of this track record, the cost of the prototype is worth it. The prototype project with IBM, leaders in the industry, should offset many of these challenges.
Delaware has previously consulted with IBM on a blockchain development that fell apart, involving a blockchain startup called Symbiont. According to Symbiont, state politicians were playing politics, and it was impossible to launch it in the state, though they had already built the blockchain corporate filing system.
IBM blockchain technology leaders
IBM has been making significant inroads into DLT. They recently secured a USD 740 million project with the Australian government and had a number of contracts with existing agencies. IBM is providing services to the Australian governmental departments including defense and home affairs and will be creating platforms to protect the data of civilians. This is expected to save the government AUD 100 million.
Koopman Logistics, a Dutch logistics company, has recently announced that they are making use of IBM blockchain technology. Supply chain logistics is a massive area that is expected to grow. The ability to track items on the blockchain, as well as upload documentation and real-time location updates, could revolutionize the speed, transparency, and efficiency of logistics in general. Knight referred to IBM as leaders in the space.
Digital Nomad with an interest in Zen and Blockchain technology.
Law graduate with 3 years experience as a consultant in the capital markets industry and 4 years experience freelancing on UpWork as a Creative Writer.