As the Texas Legislature gears up for its next session, the newly formed Texas Blockchain Council is pushing to make the state a leader in the industry. And one of its first efforts is aimed at using the technology to verify and secure government-issued records.
In an effort spearheaded by the council, Richardson-based decentralized public network Hedera Hashgraph partnered with Ohio-based content services provider Hyland to develop blockchain technology to authenticate government records and securely store them on Hedera’s public ledger. They have now taken a proof of concept to Texas’ Secretary of State office for possible statewide implementation.
“We're thrilled to show the Texas Secretary of State… how blockchain/public ledgers enable government agencies to deliver next-generation services to their constituents cost-effectively,” said Mance Harmon, co-founder and CEO of Hedera, in a statement.
The technology works by digitizing a document verifying concept called an Apostille. Typically, the process, which is codified in international law, allows secretaries of state to issue certificates verifying a document's legitimacy, allowing it to be accepted in 118 signatory countries of the Hauge Apostille Convention. The blockchain proof of concept presented in Texas by the council issues electronic Apostilles, digitally notarized through Hyland’s software and secured on Hedera’s network.
The companies said the technology would prevent fraud and lower verification and security costs while also creating more workflow efficiencies.
"A blockchain can be utilized as a digital notary. That makes it perfect for validating official records, including identity documents and credentials,” said Natalie Smolenski, business development lead at Hyland, in a statement.
The move is one of the first for the Texas Blockchain Council, which launched in November. It is led by President Lee Bratcher, who also serves as the executive director for the Institute of Global Engagement at Dallas Baptist University, and VP of operations Michael Lewellen, who is the CEO of North Texas blockchain startup Tarski Technologies. Harmon is also on the council’s board of directors.
As a foray into its push to make Texas a hub for blockchain technology, it makes sense to use Hedera in its proof of concept. According to CoinMarketCap, Hedera’s HBAR cryptocurrency has a market cap of nearly $272 million, with a 24-hour trading volume of about $45 million. The company’s governing council is also made up of big-name tech players like Google, Boeing, Wipro, and IBM.
In the capitol, the Texas Blockchain Council is also working with lawmakers to create a Blockchain Caucus within the Texas Legislature. Through that, it hopes to change the state government’s “reactionary” label from the Brookings Institution when it comes to fostering blockchain technology growth by initiatives like the formation of a Blockchain Working Group, updating the state’s Uniform Commercial Code and drafting legislation aimed at enabling broader blockchain infrastructure.
“Silicon Valley has lost its competitive edge over the years, and Texas is positioning itself to pick up the mantle of leadership in the emerging technology space,” Bratcher said in a statement at the time of the Texas Blockchain Council’s launch. “If Texas can get the regulatory and public policy piece right, then the dynamic and diversified Texas economy would have further reason to be the model for the country.”
Over time, the council hopes to grow the state’s blockchain ecosystem through public-private partnerships that bring collaboration between research institutes, government agencies, companies and economic development organizations across the state.
Texas is home to several blockchain startups. Hedera is one of the most notable – raising more than $100 million in funding with backers like BlockTower Capital, Oyster Ventures and Visary Capital. It has helped other startups in the North Texas region with its launch, like Dallas’ Hashing Systems, which develops decentralized apps on the Hedera platform and is backed by the company. Across the state, others support the blockchain ecosystem, like Austin cryptocurrency hedge fund Multicoin Capital Management, which raised at least $75 million for its flagship fund that included Marc Andreesen as an investor, according to Crunchbase.
“Texas has a long history of technological innovation and free-thinking entrepreneurs,” said Texas State Representative Tan Parker when the council announced its launch. “We've now set our sights on becoming the jurisdiction of choice for investors, entrepreneurs and enterprises to build and deploy blockchain technology applications and other emerging tech innovations.”
