S.C. Code Ann. § 34-47-10: Definitions.

For the purposes of this chapter:

(1) "Blockchain" means data that is:

(a) shared across a peer-to-peer network to create a ledger of verified transactions or information among network participants linked using cryptography to maintain the integrity of the ledger and to execute other functions; and

(b) distributed among network participants in an automated fashion to concurrently update network participants on the state of the ledger and any other functions.

(2) "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 and is governed by a set of predefined rules that execute autonomously without human intervention, the rules of which can be altered by some predetermined mechanism.

(3) "Central bank digital currency" means a digital currency, a digital medium of exchange, or a digital monetary unit of account issued by the United States Federal Reserve System or a federal agency which is made directly available to institutions or consumers by such entities, or which is processed or validated directly by such entities. The term does not mean a digital asset backed by legal tender or government treasuries and issued by a private entity.

(4) "Digital assets" means virtual currency, cryptocurrencies, natively electronic assets, including stablecoins, fungible tokens, and non-fungible tokens, and other digital-only assets that confer economic, proprietary, or access rights or powers.

(5) "Digital asset mining" means using computer hardware and software specifically designed or utilized for the purpose of validating data and securing a blockchain network.

(6) "Digital asset mining business" means an individual or company that is operating a digital asset mining facility which cumulatively draw more than one megawatt of power in this State.

(7) "Digital asset mining as a service" means an individual or business that takes the responsibility for running, maintaining, and servicing digital asset mining devices on behalf of another individual or business for a payment in dollars or other digital assets.

(8) "Governing authority" means any state board, commission, department, or agency or any political subdivision of the State.

(9) "Hardware wallet" means a physical device that is not continuously connected to the internet and allows an individual to secure and transfer digital assets. The term "hardware wallet" also includes a physical device under which the owner of digital assets retains independent control over the digital assets.

(10)(a) "Node" means software run on a computer that:

(i) communicates with other devices or participants on a blockchain to maintain consensus and integrity of that blockchain;

(ii) creates and validates blocks of transactions; or

(iii) contains and updates a copy of a blockchain.

(b) A node does not exercise discretion over transactions initiated by the end user of the blockchain protocol.

(11) "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 secured digital assets by the owner of the digital asset that are secured by a digital interface.

(12) "Staking" means committing digital assets to a blockchain network to participate in such blockchain network's operations by validating transactions, proposing and attesting to blocks, and securing the network.

(13) "Staking as a service" means the provision of technical staking services including, but not limited to, the operation of nodes and the associated infrastructure necessary to facilitate participation in blockchain networks' consensus mechanisms by the service provider on behalf of an individual or entity that owns the digital assets being staked.