Government has signed a Memorandum of Understanding with an international blockchain company to improve efficiency between departments.

The Premier, David Burt, said the agreement with The Proof of Trust (Bermuda) Ltd, demonstrated the island’s “continued commitment to engaging with innovators”.

According to a press release from the London Stock Exchange, the deal will “equip the Government with unparalleled blockchain-enabled technology, designed specifically to improve the connectivity between all governmental departments”.

The MOU was signed by the Premier and Kevin Richards, CEO of the Bermuda branch of The Proof of Trust.

The company uses the IBM blockchain platform, anti-collusion algorithm and delegates to ensure the authenticity of data put on the blockchain and used to execute smart contracts.

The company said it was incorporated to bring “cutting edge globally patented dispute and issue resolution technology to the island”.

Premier Burt said: "The agreement signed with The Proof of Trust is a clear testament to Bermuda's continued commitment to engaging with innovators.

“We are encouraged to be moving into a test phase of The Proof of Trust's protocol where Bermuda will definitively assess the numerous uses of The Proof of Trust product from a Government perspective.

"The global pandemic has shown the importance of accelerating adoption of a digital-first approach. Bermuda is committed to being an innovative smart leader and we look forward to updating on our progress with The Proof of Trust this year."

Dean Armstrong, a London-based lawyer and head of Proof of Trust’s global operations, said: "The Proof of Trust is delighted to be making this major commitment to Bermuda.

“We look forward to continuing to work closely with the Government of Bermuda, as they recognise the uniqueness of our protocol and its numerous applications. The Proof of Trust protocol can be effortlessly integrated into existing legacy systems. What we offer is a fast, secure and scalable solution as the Government of Bermuda looks to become a leader in government technology innovation driven by smart contracts."

Last year, Mr Richards told The Royal Gazette that the company would provide the public and private sector businesses an entry point for the adoption of distributed ledger technology “that is easily understood and has the power to fundamentally increase speed and efficiency when entering into agreements, while dramatically reducing the risk inherent in contracts that companies and governments enter into on a daily basis”.