States are starting to consider blockchain companies as a whole different type of corporate animal.
Vermont began allowing companies to incorporate in the state, starting July 1, using a new structure called a blockchain-based limited liability company (BBLLC). It follows a similar move by Wyoming in March.
The goal is to attract more technology-oriented companies to places that have trailed coastal states in wooing employers. They also underscore the rapid rise of blockchain as a tool for boosting efficiency, record-keeping and cybersecurity.
A blockchain, which is the technology behind bitcoin and other cryptocurrencies, is a decentralized, digital ledger used to securely record transactions. People who record these transactions—who are building the blocks in the blockchain—are called miners or nodes and can be located anywhere in the world.
Vermont’s new law tries to address the complexity of blockchain’s reliance of armies of participants in diffused networks.
“I think this is a piece that has been missing until now in the blockchain world,” Oliver Goodenough, co-director for Vermont Law School’s Center for Legal Innovation, whose December 2017 report influenced