Delaware has recently awarded a single bid contract to IBM in order to build a prototype for a blockchain-based corporate filing system for the state. The news comes from the portal delawareonline.com.
In it, Delaware’s corporate franchise business is described as contributing more than 25% of the state’s revenue. However, many blockchain advocates claim that the technology’s safety will enable the state to levy higher document filing fees – potentially surpassing many other states in the business registration activity.
In such case, blockchain could free up billions of dollars by simply speeding up the asset exchange, removing technical procedures and curtailing the business risk. The new contract which is worth $738,000 will give IBM the chance for a future full-scale system of this kind. Moreover, the company will test a computer code for a prototype for a future contract of such a system.
The deputy secretary of state, Kristopher Knight, is now optimistic when it comes to this system. He compared IBM’s role to that of an architect creating a skyscraper design before it is constructed, linking to the value of this blockchain prototype.
Delaware as a state, on the other hand, was able to provide the contract without competitive bidding mostly because it was part of an existing consulting contract, according to state officials.
Knight also added that the contract is important to the state’s business and IBM as a blockchain technology leader. He concluded that governments historically introduce technology projects that double the estimated cost due to improper planning – and that Pennsylvania has seen “tons” of such projects in the past decades.
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