359-V:1 Definitions. –
In this chapter:
I. "Blockchain" means any technology:
(a) Where data is:
(1) Shared across a network to create a public ledger of verified transactions or information among network participants;
(2) Linked using cryptography to maintain the integrity of the public ledger and to execute other functions; and
(3) Distributed among network participants in an automated fashion to concurrently update network participants on the state of the public ledger and any other functions; and
(b) Composed of source code that is publicly available.
II. "Blockchain protocol" means any executable software deployed to a blockchain composed of source code that is publicly available and accessible, including a smart contract or any network of smart contracts.
III. "Decentralized" means a blockchain system in which no person has the unilateral authority, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, to control or materially alter the functionality or operation of the blockchain system.
IV. "Digital asset" means any fungible or non-fungible digital representation of value, unit of value, voting, or usage right that can be exclusively possessed and transferred, person to person, without necessary reliance on an intermediary, and is recorded on a blockchain system. This includes virtual currencies, cryptocurrencies, natively electronic assets (such as stablecoins and non-fungible tokens), and other digital-only assets that confer economic, proprietary, access rights, or powers.
IV-a. "Digital asset mining" or "mining" means using a computer or node for the purpose of securing a blockchain network through computational processes. For the purposes of this chapter only, mining shall also include securing a blockchain through validation mechanisms based on proof-of-stake.
V. "Digital asset exchange" means any platform or network established for purchasing, selling, staking, or exchanging digital assets.
VI. "Digital asset mining business" means a person or entity operating a group of computers on one contiguous property that together consume more than one megawatt of energy for the purpose of securing a blockchain protocol.
VII. "Discriminatory rates" mean electricity rates substantially different from other industrial uses of electricity in similar geographic areas.
VIII. "Node" means a computational device which contains and updates a copy of a blockchain.
IX. "Self-hosted wallet" means a digital interface used to secure and transfer digital assets; and under which the owner of the digital asset retains independent control over the digital assets that are secured by such digital interface.
X. "Smart contract" means software code deployed in a blockchain system that consists of a set of predefined and deterministic instructions and conditions that may be executed in a decentralized manner by participants in the underlying blockchain network. Execution of a smart contract shall produce a change in the blockchain state and may autonomously enforce, execute, and record rules and actions, including but not limited to financial transactions, compliance mechanisms, and the creation of irrevocable digital arrangements. A smart contract need not meet the common law requirements of a legal contract to satisfy this definition.
XI. "Staking" means using a node to lock digital assets in order to operate the consensus mechanism of a blockchain protocol.