Delaware signed a blockchain contract with IBM
IBM and Delaware have been in news from a few days. Delaware has now entered into a blockchain contract with IBM valued at $7,38,000.
IBM, the computing giant, will be developing plans for a new corporate filling system that will be based on blockchain technology. The state is embracing the blockchain technology through its move.
Delaware is leaving no stone unturned to become a leading state for corporate registrations. The state has more than 1 million corporate entities. The announcement of the partnership was first made public in April this year. IBM was a right choice as IBM is a leader in the space.
IBM will be responsible to design blueprints for what could become Delaware’s future blockchain-based corporate filing system, as per the $738,000 single-bid state contract recently awarded to the New York-based tech giant, Armonk.
The blockchain is known for keeping information safe from hackers than traditional computer networks, according to advocates. It also allows documents to be updated and amended electronically without human errors disturbing the records.
Initially, on June 18th, a blockchain contract was awarded to IBM by the State of Delaware to build a Proof of Concept (PoC). The tenure of the said project was eighteen months and it also includes blockchain consulting. The contract was valued at $7,38,000 for a corporate filling blockchain. The information was not displayed in any public documents.
The Delaware Blockchain initiative was announced way back in May of 2016 by Governor Jack Markell. The initiative aims to enable the legal and the regulatory environment for the development of the blockchain technology. It was also aimed to welcome blockchain companies to the State.
The contract was awarded by the State legally without a competitive bidding process because there was an already existing federal consulting contract. They announced, in August 2017, the introduction of a law legalizing the use of blockchain for maintaining corporate records and issuing securities.
Delaware is a popular destination for corporations. Corporations majorly include around 85% of US IPOs and 66% of Fortune 500 companies. Earlier, there were controversies surrounding Delaware and a startup named Symbiont with which Delaware had ended all relationships owing to interest issues.
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