Vermont State House of Representatives and Senate have passed a draft bill making data verified via blockchain admissible in courts as authentic information. However, a written declaration of a qualified person, made under oath, is still required.

The Vermont Governor Peter Shumlin is expected to sign the bill in the near future. According to its approved version, it will be possible to certify via blockchain such documents as contractual parties, provisions, ownership, assignment, negotiation and transfer of money, property, contracts, instruments, and other legal rights and duties; identity, participation, and status in the formation, management, record keeping, and governance of any person; identity, participation, and status for interactions in private transactions and with a government or governmental subdivision, agency, or instrumentality; the authenticity or integrity of a record, whether publicly or privately relevant.

“A digital record electronically registered in a blockchain, if accompanied by a declaration that meets the requirements of subdivision (1) of this subsection, shall be considered a record of regularly conducted business activity pursuant to Vermont Rule of Evidence 803(6) unless the source of information or the method or circumstance of preparation indicate lack of trustworthiness.”

At the same time, the bill specifies that, in addition to blockchain verification, documents must be accompanied by a written declaration signed by the person authorised to sign the relevant documents, stating the qualification of the person to make the certification.

The draft bill was developed with the help of experts from Vermont Law School, Uniform Law Commission and state courts.

Earlier this year, the Vermont legislative body prepared a report on the possible consequences of the blockchain technology application for the storage and management of public state archives. The report noted that while blockchain has certain advantages, including financial, yet its implementation might entail considerable expenses. Despite that, the report points out that the technology itself would strengthen protection against counterfeit or erroneous entries.

Elena Platonova