369.130 Definitions for KRS 369.130 to 369.139.
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/ky/chapter-369/369-130A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
As used in KRS 369.130 to 369.139:
(1)"Blockchain" means data that is:
(a)Shared across a peer-to-peer network to create a ledger of verified
transactions or information among linked network participants using
cryptography to:
1. Maintain the integrity of the ledger; or
2. Execute other functions; and
(b)Distributed in a concurrent, automated update to network participants on the
state of the ledger and any other functions;
(2)"Blockchain network" means a technical infrastructure that provides ledger and
smart contract services to applications;
(3)"Blockchain protocol" means any executable software:
(a)Deployed to a blockchain, including an additional standardized set of rules
that:
1. Uses an existing blockchain as a base;
2. Facilitates the transfer of data and electronic records;
3. Allows that data to be broadcast to nodes; and
4. Is governed by a set of predefined rules which execute autonomously
without human intervention and can be altered by a predetermined
mechanism; and
(b)Composed of a source code that is publicly available and accessible, including
a smart contract or any network of smart contracts;
(4)"Cryptocurrency" has the same meaning as in KRS 139.516;
(5)"Cryptography" means the practice of coding information to ensure only the person
that a message was written for can read and process that information;
(6)"Digital asset" means:
(a)Virtual currency;
(b)Cryptocurrency; and
(c)Natively electronic assets, including stablecoins, fungible tokens, and
nonfungible tokens;
that confer economic, proprietary, or access rights or powers;
(7)"Hardware wallet" means a physical device that:
(a)Stores private keys offline;
(b)Provides a way to sign transactions and interact with the blockchain; and
(c)Allows the owner to retain independent control over the digital asset
contained therein;
(8)"Natively electronic asset" means a purely digital asset that exists only on the
blockchain network;
(9)"Node" means a computer which:
(a)Uses software to:
1. Communicate with other devices or participants on a blockchain to
maintain consensus and integrity of that blockchain;
2. Create and validate transaction blocks; or
3. Contain and update a copy of a blockchain; and
(b)Does not exercise discretion over transactions initiated by the end users of the
blockchain protocol;
(10)"Nonfungible token" means a digital asset on a blockchain that:
(a)Has unique identification codes and metadata that are recorded;
(b)Has been tokenized and cannot be replicated;
(c)Is used to certify ownership and authenticity; and
(d)Represents digital or physical items including artwork or real estate;
(11)"Private key" means the access to manage digital assets at a specific internet
address and may be used for encryption and digital signature;
(12)"Self-hosted wallet" means a digital interface that can:
(a)Secure and transfer digital assets; and
(b)Allow its owner to retain independent control of the secured digital assets and
private keys;
(13)"Smart contract" has the same meaning as in KRS 42.747;
(14)"Stablecoin" means a digital asset that is:
(a)Issued by a corporation;
(b)Backed by cash or high-quality liquid assets; and
(c)Redeemable on demand by the holder at par for a fixed monetary value in
equivalent United States dollars;
(15)"Staking" means using a node to commit digital assets to a blockchain network to:
(a)Validate transactions;
(b)Propose and attest to blocks contained in the blockchain; and
(c)Secure the network;
(a)"Staking as a service" means the provision of technical staking services by a
service provider on behalf of an individual or business that owns the digital
assets being staked.
(b)"Staking as a service" includes the operation of nodes and the associated
infrastructure necessary to facilitate participation in blockchain protocols’
consensus mechanisms;
(17)"Third-party wallet" means a wallet that is hosted and controlled by a party other
than the owner which contains the private keys for the owner of digital assets; and
(18)"Wallet" means a digital interface or a physical device which holds digital assets or
private keys, and may include a:
(a)Hardware wallet;
(b)Self-hosted wallet; and
(c)Third-party wallet.