A new bipartisan bill entitled Cyber Coding Cryptology For State Records has been introduced to the Colorado State Senate addressing cybersecurity of citizen’s personal information. In the accompanying press release from the Colorado General Assembly, the committee focused on developing business and technology legislation gave their recommendation, saying, “The department of state is required to consider research, development, and implementation for encryption and data integrity techniques, including distributed ledger technologies such as blockchains.”
In the bill, the Business, Labor, & Technology committee shared that in 2017 the state government receiving an estimated 6-8 million attempted cyber attacks daily, and calls on the Chief Information Security Officer to find solutions to that problem based around the new advances in distributed ledger technology. The bill seeks to “assess the data systems of each public agency for the benefits and costs of adopting and applying distributed ledger technologies such as blockchains….[and] to consider program losses due to potential malicious attack, transactional errors, or fraud as possible savings achievable from visibility gained through distributed ledger platforms.”
If passed, this would empower the Office of Information Technology to research and implement distributed ledger technologies across the state to utilize the protection that cryptography can offer. They would also work with public and private businesses to create new partnerships “to allow the capitalization of encryption technologies while protecting IP rights.” Additionally, they give permission to public universities to include distributed ledger technology in their future curriculums.
While recent reports of Colorado-based cryptocurrency scammer Dillon Michael Dean and The Entrepreneurs Headquarters being sued by the United States Commodity Futures Trading Commission (CFTC) for his part in a Ponzi scheme will bring additional scrutiny to these types of projects, it’s noteworthy that this bill and the solutions proposed are likely to transcend the conversation around cryptocurrency regulation.
The specifications of the proposed solution will be determined by the Chief Information Security Officer however, it looks like the state is moving towards a private blockchain solutions to encrypt and deliver personal data and other information across the state without using any cryptocurrency.
A private blockchain, unlike a public blockchain such as Bitcoin (BTC/USD) or Ethereum (ETH/USD), does not require a cryptocurrency to operate and have established a track record of managing data more efficiently and securely than non-cryptographic databases in business.