VIEWPOINT: Blockchain Fosters American Innovation

Blockchain has been a revolutionary force behind digital innovation not only in America, but globally as well. Often only associated with cryptocurrencies such as Bitcoin or Ethereum, blockchain technology has a litany of uses beyond digital currency. In the United States, blockchain is driving innovation in different sectors ranging from gaming to government. 

For example, California’s DMV has digitized 42 million automobile titles on Avalanche blockchain. This move will streamline title transfers, combat fraud, and save residents time through less trips to the DMV.  As Delaware’s leading technology recycler, my business NERDiT NOW stands to benefit from blockchain, as do plenty of other Delaware businesses.

Markevis Gideon | PHOTO COURTESY OF NERDIT NOW

To provide context, blockchain technology is essentially a digitized, immutable ledger that records transactions in a secure and transparent manner. As such, blockchain technology allows for what is known as smart contracts, in which terms and conditions are pre-programmed and the code automatically executes the terms of the contract once the conditions are met. When thought about at length, the possibilities for smart contracts are endless. For a small business such as my own, the management of a supply chain, the security of customer data, and the verification of authenticity or ethical sourcing can all be upgraded significantly through the use of smart contracts.

In my line of work, a consistent challenge is tracking the lifecycle of electronic devices. The nature of blockchain addresses this issue through its intrinsic quality of transparency and immutability. Blockchain’s financial utility and security could also prove fruitful to my industry, as it would to businesses across all sectors. Plus, blockchain undoubtedly drives digital innovation. As one could imagine, the rising digitization of our society is to the benefit of tech recyclers. Yet, not all of our leaders in Congress are on board with harnessing the potential of blockchain.

The chief concern for blockchain in Washington is S. 2669 the Digital Asset Anti-Money Laundering Act of 2023, which is a direct attack on everyday crypto users. The bill would mandate those who maintain public blockchain networks to register as a Financial Institution, similar to a bank. They would be required to record the personal information of every single user on the network and create an internal stopgap that would be able to freeze any transaction if it is remotely suspected of being related to criminal activity. This bill is unconstitutional and antidemocratic, and would undermine key components of what makes blockchain a unique innovation.

On the other hand, H.R. 4763, FIT21  is a step in the right direction. This bipartisan bill, which has passed the House, brings clarity to the industry by legally defining what a decentralized network is. This clarity will define a path for digital assets to transition from security investments to commodities, and will mainstream these assets through delineating the oversight roles for both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This bill calls for inter-agency cooperation in order to provide balanced rules for the industry while also protecting consumers in this emerging market. The passage of this legislation will help encourage digital asset companies to remain in America and could give us a competitive edge in digital innovation moving forward.

As the United States continues to embrace blockchain, it is essential to recognize the efforts that could weaken or strengthen it on Capitol Hill. As with any other concept, blockchain proponents should not hesitate to make their voice heard to our leaders. For technology recyclers and beyond, blockchain can guide us towards a more responsible and efficient society– I’m proud to support the fostering of innovation in America.

Markevis Gideon is the CEO of NERDiT Now.