The Illinois Blockchain Technology Act takes effect, and smart contracts are legalized

The US state of Illinois has taken an important step towards regulating blockchain-based technology through the Blockchain Technology Act. The bill, supported by Rep. Keith Wheeler, came into effect on January 1, 2020. One of the first issues that the bill will address is the definition of the blockchain itself: "Blockchain is created by multiple parties using a decentralized method Electronic records to verify and store digital records of transactions, which are protected by an encrypted hash of previous transaction information. "
In addition, the bill provides definitions of cryptographic hashes, electronic records, and smart contracts. The bill also states that “the legal validity or enforceability of these objects must not be deprived of simply because the blockchain is used to create, store, or verify smart contracts, records, or signatures.” The bill also adds that if required to submit in writing A blockchain-based smart contract that contains records, then the contract is in compliance with legal requirements. In other words, smart contracts are now acceptable in court, and they can be used to provide proof or require enforceability.