{"data":{"id":"us-ky/krs-369.130","jurisdiction":"us-ky","citation":"KRS 369.130","heading":"Definitions for KRS 369.130 to 369.139.","body":"As used in KRS 369.130 to 369.139:\n(1) \"Blockchain\" means data that is:\n(a) Shared across a peer -to-peer network to create a ledger of verified transactions or information among linked network participants using cryptography to:\n1. Maintain the integrity of the ledger; or\n2. Execute other functions; and\n(b) Distributed in a concurrent, automated update to network participants on the state of the ledger and any other functions;\n(2) \"Blockchain network\" means a technical infrastructure that provides ledger and smart contract services to applications;\n(3) \"Blockchain protocol\" means any executable software:\n(a) Deployed to a blockchain, including an additional standardized set of rules that:\n1. Uses an existing blockchain as a base;\n2. Facilitates the transfer of data and electronic records;\n3. Allows that data to be broadcast to nodes; and\n4. Is governed by a set of predefined rules which execute autonomously without human intervention and can be altered by a predetermined mechanism; and\n(b) Composed of a source code that is publicly available and accessible, including a smart contract or any network of smart contracts;\n(4) \"Cryptocurrency\" has the same meaning as in KRS 139.516;\n(5) \"Cryptography\" means the practice of coding informati on to ensure only the person that a message was written for can read and process that information;\n(6) \"Digital asset\" means:\n(a) Virtual currency;\n(b) Cryptocurrency; and\n(c) Natively electronic assets, including stablecoins, fungible tokens, and nonfungible tokens; that confer economic, proprietary, or access rights or powers;\n(7) \"Hardware wallet\" means a physical device that:\n(a) Stores private keys offline;\n(b) Provides a way to sign transactions and interact with the blockchain; and\n(c) Allows the own er to retain independent control over the digital asset contained therein;\n(8) \"Natively electronic asset\" means a purely digital asset that exists only on the blockchain network;\n(9) \"Node\" means a computer which:\n(a) Uses software to:\n1. Communicate with  other devices or participants on a blockchain to maintain consensus and integrity of that blockchain;\n2. Create and validate transaction blocks; or\n3. Contain and update a copy of a blockchain; and\n(b) Does not exercise discretion over transactions initia ted by the end users of the blockchain protocol;\n(10) \"Nonfungible token\" means a digital asset on a blockchain that:\n(a) Has unique identification codes and metadata that are recorded;\n(b) Has been tokenized and cannot be replicated;\n(c) Is used to certify ownership and authenticity; and\n(d) Represents digital or physical items including artwork or real estate;\n(11) \"Private key\" means the access to manage digital assets at a specific internet address and may be used for encryption and digital signature;\n(12) \"Self-hosted wallet\" means a digital interface that can:\n(a) Secure and transfer digital assets; and\n(b) Allow its owner to retain independent control of the secured digital assets and private keys;\n(13) \"Smart contract\" has the same meaning as in KRS 42.747;\n(14) \"Stablecoin\" means a digital asset that is:\n(a) Issued by a corporation;\n(b) Backed by cash or high-quality liquid assets; and\n(c) Redeemable on demand by the holder at par for a fixed monetary value in equivalent United States dollars;\n(15) \"Staking\" means using a node to commit digital assets to a blockchain network to:\n(a) Validate transactions;\n(b) Propose and attest to blocks contained in the blockchain; and\n(c) Secure the network;\n(16) (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.\n(b) \"Staking as a service\" includes the operation of nodes and the associated infrastructure necessary to facil itate participation in blockchain protocols’ consensus mechanisms;\n(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\n(18) \"Wallet\" means a digital interface or a physical device which holds digital assets or private keys, and may include a:\n(a) Hardware wallet;\n(b) Self-hosted wallet; and\n(c) Third-party wallet.","path":["KRS Chapter 369"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56158","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:07Z","sha256":"2bf3231547f3d6ef69606137f89970ec8364861f40615a240ab3c92d343ae48c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-369.120","next":"us-ky/krs-369.135"},"notice":"GroundRules: Original legal text. Not legal advice."}