Distributed Stock Ledgers and Delaware Law

Effective August 1, 2017, the Delaware General Corporation Law (the "DGCL") now authorizes Delaware corporations to use blockchain technology to maintain stock ledgers and communicate with stockholders. Consistent with the DGCL's status as an enabling act that facilitates private ordering, the blockchain amendments are permissive. In the near term, they create a foundation for a technology ecosystem by removing any uncertainty about the validity of shares that have been issued or are maintained using blockchain technology. Over a longer time horizon, the amendments foreshadow a more flexible, dynamic, and digital future in which distributed ledger technology and smart contracts play major roles.