What is Blockchain?
Blockchain is a new form of database technology that enables multiple parties to share a single “golden copy” of data and trust that it is valid, owing to a breakthrough of computer science that enables the computers of multiple users or organizations to reach consensus about the state of their shared data without the need to reconcile their own copies.
What is Bitcoin?
Bitcoin was the first application of blockchain technology. It is a decentralized payments system that records the ownership and transfers of a token (called a bitcoin) on payments system fully integrated with the token (called a blockchain) that is operated by thousands of computer nodes located around the world.
Bitcoin is a marvel of computer science. Protected by the laws of math, no one has been able to hack the bitcoin protocol — yet — despite a huge hacker’s bounty (as high as $120 billion in November 2017). Hacks have happened on applications related to bitcoin, but the underlying protocol has remained secure. Since the first bitcoin was “mined” on January 3, 2009, the network has been functional 99.99185% of the time despite having no system administrator.
Are Blockchains Secure?
Security is always relative. Computer science experts view blockchain systems as relatively more secure than traditional computer networks. Blockchain systems are decentralized and protected by encryption, while traditional systems are centralized and the information stored inside their firewalls is rarely protected by encryption. Bitcoin has spurred advances in IT security that apply beyond bitcoin and blockchains, since for the first time the actual value — not just the recordkeeping — is itself digital, and owners have a huge incentive to protect its security.
Computer System Architecture
Centralized, Not Encrypted
- Single point of failure
- Attackers have an obvious place to attack
- Strong firewall, but data behind it is rarely encrypted
- Need to create separate disaster recovery back-ups
Decentralized AND Encrypted
- No single point of failure
- If a node goes down the network continues unabated
- Heavy use of encryption to protect data
- Each node has a full back-up copy of data; high resiliency
Why are Companies So Interested in Blockchain?
Banks, healthcare companies, logistics companies and governments are embracing blockchain technology with zeal. More than 26,000 blockchain projects were started in 2016 alone, according to Deloitte’s analysis of data in the code repository GitHub.
- Cost Savings
- De-Duplication of Records
- Automation of Administrative Tasks
Blockchain Ecosystem Landscape: Fast Facts*
Since 2012, 650+ equity deals have closed for over $2B
- Capital Raised via Utility Tokens
Since Jan. 2016, 250+ ICOs have closed for well over $2B
- Market Value
$209 billion market value of ecosystem as of Nov. 9, 2017
- Blockchain Projects
More than 26,000 blockchain projects started since 2016 alone
*sources: CB Insights, CoinMarketCap.com and Deloitte
Wyoming Should Be Attracting This Ecosystem
Wyoming’s Advantages for Attracting This Ecosystem
- Favorable LLC and Corporate Laws
- Strong Privacy Protections
- Zero Corporate Income or Franchise Taxes
- Strong Academic Support from UW
- Tremendous Bandwidth in Cheyenne Area
Blockchain Applications To Wyoming
- Allowing Wyoming LLC Registrants To Register on a Blockchain
Wyoming led the way when it passed the nation’s first LLC law in 1977, and it can again be first by offering the ability to register LLCs on a blockchain. This could attract meaningful business into Wyoming, as today 2/3 of new companies that register in the U.S. are LLCs — and new users of LLCs (such as for autonomous cars and other Internet of Things (IoT) devices) could be attracted to efficiencies enabled by blockchain-registered Wyoming LLCs.
- Ranchers and coal producers, for example, guaranteeing their customers certified Wyoming products by allowing them to track their Wyoming origin on a blockchain.\
- Reducing Wyoming’s healthcare costs by eliminating information duplication via a blockchain
- Creating a registry of mineral rights and leases and a tracking system for royalty and severance payments on a blockchain
- Tracking government documents and automating compliance with public-records retention laws using a blockchain.
- Improving the transparency of Wyoming campaign finance by using a blockchain
- Other industries positively impacted by adoption of blockchain technology include Accounting, Financial Services, Legal Services, Land Title, Licensing and Permits, among others