Blockchain Promotion Act approved by US Senate, defining blockchain

Even though blockchain is roughly considered a decentralized ledger technology, the US Senate wants a clearer definition of the network as far as its uses are concerned. To that end, it recently approved of the Blockchain Promotion Act, which is intended to address the nascent technology. The US government basically wants to establish how it can best benefit from blockchain and is now directing the Department of Commerce to figure it out.

With blockchain covering a wide range of new industries, including cryptocurrency, it can be difficult to truly pin down a clear definition of the nascent technology. However, it is apparent that US lawmakers are excited at the prospect of a ledger that offers maximum transparency and is nearly impossible to tamper with, CNET reports. One of the more vocal supporters of blockchain is Sen. Ed Markey, Massachusetts (D).

"Blockchain is an exciting new technology with great potential and promise," he said and then later adding, "This legislation will help further understand applications for this technology and explore opportunities for its use within the federal government."

The Blockchain Promotion Act is actually one of the few bipartisan bills that the two major parties in the US Senate could agree on. It had support on both sides from the start and this is what can give blockchain the kind of legitimacy it needs to really grow. California Democrat, Rep. Doris Matsui said as much in a statement.

"This bipartisan, bicameral bill will bring a broad group of stakeholders together to develop a common definition of blockchain, and, perhaps even more importantly, recommend opportunities to leverage the technology to promote new innovations," Matsui said.

The participants who will be working on drafting the definition of blockchain have been given one year to accomplish their task, Cointelegraph reports. During that time, blockchain sectors are expected to grow and expand their influence.