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The compatibility of blockchain and the laws
Many articles describe how blockchain technology works. This article will focus instead on the compatibility of blockchain with the laws that (indirectly) regulate it.
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A blockchain is essentially a distributed database of records or a public ledger of all transactions or digital events that have been executed and shared among participating parties. (Shutterstock/File)
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any articles describe how blockchain technology works. This article will focus instead on the compatibility of blockchain with the laws that (indirectly) regulate it. It is designed as a preliminary look at blockchain technology in light of Indonesian laws.
The development of blockchain technology appears to be analogous to the foundational period of the internet. Today, we acknowledge an ongoing acceleration in blockchain development, in particular with regard to investment.
Tech-company database Crunchbase News reported in 2018 that global investment in blockchain and blockchain-related companies had surpassed the total amount raised during the 18-month period between July 2016 and early 2017. To be exact, investment rose from just US$600 million (Rp 8.8 trillion) at the start of 2017 to well above $1.3 billion (Rp. 19 trillion) in May 2018, as reported by Rowley on techcrunch.com, and that figure continues to grow followed by the increasing number of crypto-unicorn trading platforms.
In some countries, authorities indirectly regulate blockchain as a new technology, but others take a closer look at the proliferating adoption of new technologies (including blockchain, big data, artificial intelligence, etc.) in financial services. For example, the European banking authority has mapped out a detailed survey on the scope of fintech and its subsets, but specific regulation on blockchain and distributed ledger technology remains unseen.
