Abstract
The states of the United States operate parallel registration systems under the rules of the Uniform Commercial Code to provide notice of existing security interests in collateral to lenders. The current system is primarily a paper-based system more suited to the 19th than the 21st century. While the states have implemented varying degrees of computerization and modernization, dealing with fifty separate registration databases has made it difficult for banks and their attorneys to automate their processes, leading to errors and loss. The system could be modernized by storing the records for all 50 states in a single shared database with external electronic access. In this paper, we propose an implementation of a distributed, replicated database utilizing a variation on the Bitcoin blockchain for data storage and validation.
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Notes
- 1.
To simplify this explanation, we omit the cases where only a fraction of a Bitcoin or only part of a grant of Bitcoin is spent. We briefly discuss coin creation below.
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Gerstl, D.S. (2016). Leveraging Bitcoin Blockchain Technology to Modernize Security Perfection Under the Uniform Commercial Code. In: Maglyas, A., Lamprecht, AL. (eds) Software Business. ICSOB 2016. Lecture Notes in Business Information Processing, vol 240. Springer, Cham. https://doi.org/10.1007/978-3-319-40515-5_8
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