IBM builds blockchain prototype for Delaware’s corporate filing system

The state of Delaware has reportedly awarded a contract worth $738,000 to IBM (International Business Machines Corporation). As per sources, the contract has been awarded with an aim to provide a good regulatory environment for blockchain technology. IBM will be implementing a blockchain prototype for the state’s corporate filling system.

Delaware’s blockchain advocates claim that the safety of technology will help the state surpass other states in business registration, as it would enable Delaware to levy higher fees for document filing.

Jack Markell, Former Gov. official stated at New York City conference in 2016 that blockchain could speed up the rate of asset exchange asset, reduce business risk and technical procedures which might help free up substantial revenue worth billions.

IBM has decided to test computer codes for the prototype at a full-scale level for any future contracts. This prototype will apparently help the state determine the role that technology plays in Delaware businesses.

Reports claim that there were some challenges faced in Delaware’s blockchain project. A startup project in blockchain called Symbiont which was consulted by IBM at $49,000 had fallen apart earlier this year.

Mark Smith, CEO of Symbiont stated that there was a rise in concerns by other state officials regarding the blockchain filing system – possibly that it could obstruct the activities of registered agents, state as well as corporate attorneys and would affect jobs related with company filings.

A bill was signed last year by Markell that could identify the stock trading on blockchain, after a state judge encouraged the investors for distribution of ledger technology to protect their votes.

In addition to the existing contracts with four federal agencies, IBM also won a contract recently worth $740 million for building blockchain and more digital technologies for the government of Australia. Incidentally, the country aims to be in the top three digital governments by 2025.