A California Senate panel has signaled a "go-ahead" to a Bill that allows companies in the state to store data, including information about stockholders, on a blockchain.
Bill 838, which was introduced by Senator Robert Hertzberg in January, aims to establish a secure method to issue and transfer corporate share certificates. The State Senate's Banking and Financial Institutions Committee referred the measure to the Judiciary Committee with a recommendation to approve it.
The Judiciary Committee is scheduled to consider the Bill in early May. Once it approves the Bill, it will be put to vote in the Senate.
If the measure passes the Senate, it would make storing information about a company's stocks, including ownership, on a blockchain legal.
Records can be stored and updated on multiple computers using Blockchain's distributed ledger technology.
Seen as the "wallet" for cryptocurrencies, blockchain has a multitude of other practical applications across many industries.
Forbes "Fintech 50" list of the top 50 financial technology companies include 11 firms that use Blockchain technology or are connected to the cryptocurrency industry.
Forbes says the technology has quietly disrupted the U.S. financial services industry, "changing how we invest, borrow and save; how big banks control risk; and how hedge funds analyze data and place their bets."
Several U.S. states have embraced blockchain technology as a more secure way of doing business.
In California, UCLA and Berkeley have created their own blockchain labs to explore the potential of blockchain technology.
by Joji Xavier
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