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2025 Kentucky Revised Statutes
Chapter 369 - Information technology
369.130 Definitions for KRS 369.130 to 369.139.

Universal Citation:
KY Rev Stat § 369.130 (2025)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.
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369.130 Definitions for KRS 369.130 to 369.139. 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) (10) (11) (12) (13) (14) (15) (16) (17) (18) 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; "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; "Private key" means the access to manage digital assets at a specific internet address and may be used for encryption and digital signature; "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; "Smart contract" has the same meaning as in KRS 42.747; "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; "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; "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 "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. Effective: June 27, 2025 History: Created 2025 Ky. Acts ch. 50, sec. 1, effective June 27, 2025.
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