Delaware’s Deputy Secretary of State Kristopher Knight has effectively admitted he’s trying to protect incumbents from the disruptive potential of blockchain technology. He says:
“So you say, ‘It would be really cool if you could do this on the blockchain or that,’ but how might that impact other revenue sources? How might that impact other entities in the environment?”
America’s leading state for company incorporations, with one million corporate entities, including 64 percent of Fortune 500 companies, was one of the first state to embrace blockchain technology, but then a new governor, John Carney, came into office which changed the situation.
“It’s like somebody pushed the pause button,” said Andrea Tinianow, a corporate lawyer who until last month was director of the Delaware Blockchain Initiative.
While Symbiont CEO Mark Smith, who had partnered with the state on the blockchain initiative launched back then to some fanfare, said:
“Carney reached back to the private sector to find out who would be affected. The administration is focused on jobs in the state of Delaware and registered agents make their livings off of [company filings].”
Delaware’s local paper says Knight’s office of Delaware’s Deputy Secretary of State has “an obligation to not haphazardly advance ideas that could disrupt Delaware’s grip on its corporate franchise business.
While the state could take in more revenue with blockchain applications, his office also is examining the potential costs, [Knight] said.”
Caitlin Long, former President of Symbiont and a blockchain advocate, said Delaware’s officials admitted they are protecting established businesses from new innovations:
“It’s rare to see a govt official directly admit he’s protecting incumbents from disruptive technology, but the head of Delaware’s Division of Corporations pretty much did that,” she said.
Wyoming is now seemingly bidding for that top spot held by Delaware by embracing blockchain technology, with an old story potentially repeating.
Blockbuster, Kodak, Nokia. The list of companies that failed to adapt and perished is endless, yet that lesson never seems to be learned.
It’s as if a law of nature says a confident market leader will become very complacent and far too cautious, even a luddite; will ridicule the new invention, will never believe it will have any application, and will eventually go bankrupt as the new invention makes competitors far more superior.
That law of nature was stated by Darwin some time ago and it amounts to, in effect, adapt or perish, for:
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change,” – Darwin.