The US state of Illinois has joined the ranks of other US entities that recognize the validity of smart contracts and blockchain entries. The blockchain law entered into force on January 1, opening up many potential new legal scenarios for blockchain-based contracts. These contracts can now be used as evidence in court, as well as being recognized as an alternative to paper documents and are legally exempted from local taxation. “A smart contract, record or signature cannot be deprived of legal force or the possibility of enforcement only because the blockchain was used to create, store or verify a smart contract, record or signature” the law says. In addition to recognizing the validity of blockchain entries, the law also protects the industry from local government interference. This means that cities cannot introduce taxes and introduce regulation.