•HRES 1108 IH 
(3) is replicated across all copies of the ledger within 
the relevant network, with any conflicts in such blocks re-
solved automatically using established rules; 
Whereas blockchain can— 
(1) reduce transaction costs by removing inter-
mediaries; 
(2) increase the transparency of a transaction; 
(3) reshape value chains; 
(4) improve organizational efficiency through trust-
worthy decentralization; 
(5) provide individuals with greater control over per-
sonally identifiable information through encryption while 
conducting transparent, secure, and efficient trans-
actions; 
(6) accurately capture asset ownership and location 
throughout the lifetime of an asset, protecting owners 
and improving tax compliance; 
(7) improve public safety and administration by pro-
viding a tamper-proof audit trail; 
(8) reduce the efficacy of cyber-attacks by storing 
data in numerous distributed copies; and 
(9) improve the quality of public services by pro-
viding a better customer experience and reducing trans-
action costs; 
Whereas because blockchain is an evolving technology, it re-
quires a framework that facilitates innovation, provides 
for legal certainty, and respects the principle of tech-
nology neutrality while also providing protection for con-
sumers, businesses, investors, society, and the environ-
ment; 
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•HRES 1108 IH 
Whereas uncertainty related to the application of horizontal 
regulations related to data protection and taxation can 
inhibit the development of blockchain; 
Whereas blockchain has the potential to provide widespread, 
mainstream improvements in digital services; 
Whereas because the risks and challenges of blockchain are 
not yet known, more research and development is nec-
essary; 
Whereas blockchain has many potential applications, includ-
ing— 
(1) production and peer-to-peer exchange of environ-
mentally friendly energy and scalability and flexibility for 
energy plant operators, suppliers, and consumers; 
(2) improvements in the transportation sector, in-
cluding with respect to mobility and logistics, registration 
and administration of vehicles, verification of driving dis-
tances, smart insurance, and charging of electronic vehi-
cles; 
(3) improvements in the healthcare sector, including 
improved reporting on clinical trials, and digital data ex-
change controlled by patients; 
(4) supply chain improvements, including improved 
shipment tracking and monitoring, transparency, and 
compliance with legal and ethical standards; 
(5) improvements in education including degree 
verification, encrypted educational certifications, and 
credit transfer mechanisms; and 
(6) assistance in protecting control of creative con-
tent by copyright holders and ensuring copyright holders 
are compensated for use of the content; 
Whereas blockchain can allow users to control information 
about themselves shared on the internet, choosing the ap-
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•HRES 1108 IH 
propriate degree of transparency for a particular applica-
tion; 
Whereas blockchain can support the development of a new ar-
chitecture for digital identities; 
Whereas because digital identities are imperative to the fu-
ture, best practices should be established to ensure that 
data is secure; 
Whereas blockchain is protected by cryptography that re-
places 
third-party 
intermediaries, 
validating, 
safe-
guarding, and preserving transactions; 
Whereas public trust in blockchain is improved by the devel-
opment and use of open-source protocols and platforms; 
Whereas a smart contract is a collection of code and data 
stored on blockchain that enables the automatic execution 
of the terms of a contract upon the occurrence of a pre- 
programmed condition; 
Whereas a thorough assessment of the potential uses and the 
legal implications of smart contracts is necessary; 
Whereas it is necessary to closely monitor emerging cyber- 
threats to ensure the reliability of blockchain platforms; 
Whereas the appropriate agencies should develop mechanisms 
to stress test blockchain applications; 
Whereas different blockchain processes and applications can 
benefit from efforts by organizations like the National In-
stitute of Standards and Technology and the Inter-
national Organization for Standardization in creating 
common standards to ensure interoperability and effi-
ciency in working with legacy platforms; 
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•HRES 1108 IH 
Whereas regulation of blockchain should be innovation friend-
ly and should avoid giving preference to a particular tech-
nological approach or business model; and 
Whereas digital skill training is necessary to help make full 
use of the potential of blockchain; Now, therefore, be it 
Resolved, That it is the sense of the House of Rep-
resentatives that blockchain has incredible potential that 
must be nurtured through support for future research and 
development and a thoughtful and innovation-friendly reg-
ulatory approach. 
Æ 
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