Introduced on Jan. 16, Senate Bill 086 suggests that using a distributed ledger would eliminate the need for paper records and in-person updating of such data. The blockchain system would subsequently solve the state’s existing data collection and retention issues, and create a more secure record.
If passed, the bill would direct Colorado’s chief information security officer to evaluate the costs and benefits of using distributed ledgers in various government systems, and to determine blockchain’s capability in handling cyberattacks compared to traditional computer systems.
In 2017, according to the bill, there were somewhere between six and eight million attempted breaches of the Colorado state government’s digital platforms per day.
Many of the records kept by the government are unsecured, and therefore are “valuable targets for identity thieves and hackers with the intent to steal or penetrate corporate records.” The bill went on to note that there is an increasing number of threats to steal personal information.
In addition, the bill pointed out that Colorado currently still requires citizens to visit state agencies in person to modify their information, a pain-point that can be solved by a blockchain system.
“Blockchain distributed ledgers provide the capability of openly traceable transactions while maintaining the privacy of each person performing the transactions.”