(TRENTON) – Aiming to expand the use of secure blockchain technology in New Jersey, the Assembly Science, Innovation and Technology Committee on Wednesday approved legislation to allow corporations in the state to use electronic networks that use blockchain technology to simplify recordkeeping requirements under New Jersey law and protect against the hacking of sensitive information.
‘Blockchain’ is the term for a series of digital transactions that allow for highly secure, nearly incorruptible electronic transitions and digital recordkeeping. Each chain is encrypted so that no one can change the transaction data once it is recorded in the ledger.
The bill (A-1178) is sponsored by Science, Innovation and Technology committee chair, Assemblyman Andrew Zwicker.
“Businesses looking to strengthen data privacy and prevent hacking in their recordkeeping systems could benefit from using blockchain technology,” said Zwicker (D-Somerset, Mercer, Middlesex, Hunterdon). “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.”
The measure would go into effect immediately upon enactment. It now goes to the Assembly Speaker for further consideration.