BUFFALO, N.Y. -- Blockchain is essentially an advanced digital database that allows for the sharing of information and peer-to-peer transactions.

It's most commonly associated with cryptocurrency.

"Unfortunately, I think cryptocurrency is taking up the bandwidth but there's a lot more that can be done with blockchain," former New York state Sen. David Carlucci said.

Carlucci said the technology is really in its early stages with so many more potential applications on the horizon in sectors like health care, energy and government. As a former town clerk as well, he said he knows the importance of records management and access. 

"I have a deep connection with this idea of blockchain and how it can be used to make new entrepreneurial pursuits but also make government more efficient and transparent," he said.

Carlucci is one of the founders of a new group called the New York Blockchain Council. He said the council will connect experts in different fields to form a think tank and networking space and eventually develop best practices and ideas.

"Lawmakers are hit from all sides with all different issues that constituents and special interest groups want them to take up as a priority and that's why I think it's important that we have an organization like the New York Blockchain Council to be there as a resource for elected officials," Carlucci said.

The former lawmaker said now is a critical time for New York to take the lead as the federal government, states and local governments look at how to regulate the industry.

"People need to have trust in the system and they need to feel that this is something they can work with, they can play with, they can experiment with and see where it leads them to," he said.

Carlucci said the state needs to make sure that there are appropriate consumer protections and data security measures. However, he said it needs to be done in a way that doesn't stifle innovation or push away budding entrepreneurs.

"We're considered the financial capitol of the world and there's no reason why we can't be the blockchain capitol of the world as well," he said.