§ 25-32-122. Signatures and records secured through blockchain technology — Definitions

(a) As used in this section:

1. (1) “Blockchain distributed ledger technology” means technology that uses a distributed, decentralized, shared, and replicated ledger that is:

   1. (A) Either:

      1. (i) Public; or

      2. (ii) Private;

   2. (B) Either:

      1. (i) Permissioned; or

      2. (ii) Permissionless; and

   3. (C) Contains data that is:

      1. (i) Securely protected with cryptography;

      2. (ii) Immutable;

      3. (iii) Auditable; and

      4. (iv) Provides an uncensored truth;

2. (2) “Blockchain technology” means a shared, immutable ledger that facilitates the process of recording one (1) or more transactions and tracking one (1) or more tangible or intangible assets in a business network; and

3. (3) “Smart contract” means:

   1. (A) Business logic that runs on a blockchain; or

   2. (B) A software program that stores rules on a shared and replicated ledger and uses the stored rules for:

      1. (i) Negotiating the terms of a contract;

      2. (ii) Automatically verifying the contract; and

      3. (iii) Executing the terms of a contract.

(b) A signature that is secured through blockchain technology shall be considered to be in electronic form and an electronic signature.

(c) A record or contract that is secured through blockchain technology shall be considered to be in electronic form and an electronic record.

(d)

1. (1) A smart contract shall be considered a commercial contract.

2. (2) A contract that contains a smart contract term and relates to a transaction shall not be denied legal effect, validity, or enforceability.