Senate Bill 086 has been introduced to the Colorado Senate and proposes that the Colorado government utilize blockchain technology to secure private data and decrease the likelihood of cyber-attacks.
The bill, introduced earlier this month, recommends the use of a distributed ledger as a replacement for in-person updates and paper recordkeeping. The implementation of a blockchain system would also solve current issues with security and data collection and retention.
According to the proposed legislation, between six and eight million attempted security breaches occur daily, leaving government records and personal information vulnerable to “identity thieves and hackers with the intent to steal or penetrate corporate records.” As technology grows more sophisticated, so do hackers, and all businesses are looking to stay ahead of the curve with secure platforms.
In addition to security threats, there is also the issue of tedium. Updates, paperwork, and records must all be handled in person, which is an inconvenience that could be resolved with blockchain technology.
If the bill passes, the process of implementation would fall on Chief Information Security Officer (CISO) Deborah Blyth, who has been serving since August 2014. As CISO, she would evaluate the costs and benefits for how to best implement a distributed ledger system, and if and how the technology would compare to traditional computer processing for cyber-attack prevention.
Blockchain technology isn’t completely immune to attack, but it does have many advantages over other systems. Using blockchain technology means that “data cannot be overwritten, data manipulation is extremely impractical, thus securing data and eliminating centralized points that cybercriminals often target.” In addition, because the ledger is immediately distributed to all users when a change occurs, data remains safe despite potential hacking.
Other states, like Illinois, have already begun testing blockchain technology as a replacement for some recordkeeping. The Centers for Disease Control and Prevention (CDC), the U.S. military, and a number of countries around the world have also expressed interest. If the Senate bill passes in Colorado, however, the state will be on the forefront of the implementation of blockchain technology, and will (hopefully) benefit from more secure recordkeeping methods as a result.