This article appeared as "Block and Key" in the Winter 2023 issue of Independent School.
Blockchain technology has the potential to revolutionize a wide range of industries—including K–12 private education. How exactly can independent schools benefit? I reached out to Phillip Bauknight, chair of Fisher Phillips’ cryptocurrency and blockchain practice group, to get his take on two key areas where schools can use this technology—donations and student records.
First, it’s important to define two key terms—“blockchain” and “smart contracts.” Bauknight defines blockchain as “a digital ledger that contains an immutable historical record—or chain—of all transactions that have occurred on that blockchain’s network. The digital ledger is transparent, which allows for information counter-checking and makes falsifying information difficult. No individual person can change a transaction after it’s recorded.”
Smart contracts, Bauknight explains, are “self-executing contracts in which the parties agree on various stipulations and exceptions, which are then represented on a blockchain in the form of digital code. Once these predetermined conditions are met, the contract automatically executes, triggering next steps without human filing, errors, or fees. That means they are trackable, irreversible—and automatically enforced.”
The Donation Process. Independent schools must often chase down agreed-upon donations and spend too much time reporting goals and metrics. But, Bauknight explains, by using blockchain technology, schools could set specific goals in annual performance plan documents and create a smart contract with a group of donors. Their donations, he explains, would be automatically triggered and executed as the school meets each particular milestone or performance objective. This process would allow schools to more efficiently collect promised donations.
Student Records. Educational institutions own and control student records such as diplomas and transcripts. Verifying and transmitting records is time-intensive and cumbersome, and paper, storage, and mailing costs consume considerable dollars per year.
Bauknight explains that these student records can be stored on the blockchain, offering direct access to high schools or colleges and universities. Diplomas, for example, could be issued on the blockchain rather than in person, giving students permanent control and ownership of a record that can’t get lost or destroyed.”
Blockchain technology has transformative benefits. Independent schools should begin seriously evaluating these and other issues, as blockchain is on the cusp of changing the way schools handle business.
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