An Overview of Blockchain and Delawares Blockchain Initiative - PowerPoint PPT Presentation

Sponsored By: An Overview of Blockchain and Delaware’s Blockchain Initiative Matthew J. O’Toole September 29, 2018 National Public Records Research Association Annual Conference

Overview of Blockchain/DLT  Broad/high-level overview  Not “in the weeds”  Lawyer’s/layperson’s/non-expert’s viewpoint  I’m not a “techie”  Goal: basic familiarity, user-level understanding 2

Overview of Blockchain/DLT  “Revolutionary”  “Disruptive”  Why?  Promise/potential for:  Enhanced security  Transparency  Immutability  Efficiency/expedition/cost-effectiveness 3

Overview of Blockchain/DLT  What is it?  Collaborative approach to record creation and maintenance  Essentially a network of databases  Rather than a single database controlled/updated by one “authority”  Blockchain participants = “nodes”  Reliance on cryptography for data integrity/security  Open/public v. private/permissioned ledgers  Bitcoin uses blockchain technology  Individual transaction = block  Chain of transactions/blocks – blockchain 4

Overview of Blockchain/DLT  Examples of ledgers that may be centralized/distributed  Cryptocurrency  Shares of stock  Real estate registry  Vital records  DMV  Public archives 5

Overview of Blockchain/DLT  “Smart contracts”  Not equivalent to blockchain/DLT  Neither smart nor contracts  Computer coding for automation of contract performance  Automatic withdrawals/bill payment  Corporate name change/UCC amendment  Dividend payment  Life insurance payout/annuity termination 6

Delaware’s Blockchain Initiative  Launched May 2016  Overarching theme - Delaware embraces technology and innovation  Multiple aspects • Legislative/regulatory approach • Use case • Corporate law amendments – “blockchain shares”  2017 DGCL amendments 7

Delaware’s Blockchain Initiative  Current status • Initial objectives achieved – Use case implemented – Corporate law amendments enacted  DBI 2.0 – Delaware Secretary of State focusing on deployment – Working group – Corporate records, UCC records  2018 DLLCA, DRULPA, and DSTA amendments  Other? 8

Contact Information Matthew J. O’Toole Direct Dial: (302) 984-6114 Email: motoole@potteranderson.com Potter Anderson & Corroon LLP Hercules Plaza, 6th Floor 1313 North Market Street Wilmington, DE 19801 www.potteranderson.com 9