The blockchain has been transforming industries around the globe. From cross-border payments and health and tutoring records to gaming, insurance, and retail the blockchain is fast becoming the go-to tech tool of today and the eventuality. And the heavily-regulated legal industry is one of the newest sectors adopting this innovative technology.
What is the Blockchain?
Blockchain technology may have started with bitcoin, but the transparency and responsibility it offers have gained the attention of the world. The blockchain is a decentralized government ledger that records transactions, reducing the need for third-party interference and oversight. Every investment is connected to a unique user ID and logged. This permits users—not their operations—to remain unidentified. The blockchain also provides more significant verification and protection to reduce the risk of data breaches.
Smart Contracts For A More intelligent Day-To-Day
The legal sector has been transforming over the last several years. With trends like online legal assistance, machine learning technology, and Artificial Intelligence, the legal business isn’t a stranger to change. And now, in the most modern advent of transformation, the blockchain is redefining security, automation, and contractual arrangements.
Ethereum blockchain’s smart agreements increase security and facilitate automation and performance in an industry where time is money. By utilizing smart deals, legal professionals can store digital information on the blockchain and bestow it with relevant parties in real-time. The blockchain documents information and identities to prevent fraud, reducing the need to draft contracts in courtrooms. And with the permanent nature of the ledger, lawyers can rest assured understanding that their documents and data can’t be meddled with in any way.
Here are three more means the blockchain is already transforming the legal area:
The blockchain is transforming the way governments keep track of their citizens. Some nations are already utilizing it to store census information and could increase it to store voter information as well. By tracking data like birth, mortality, marital status, and criminal activity, the blockchain can decrease fraud and mistaken identities.
In 2016, Bitfury announced that they were building blockchain technology that could store data about land titles and give ownership to residents of the Republic of Georgia. In 2017, they began accepting bitcoin as a fee for the transfers. By moving land rights to the blockchain, the data is less prone to be breached, and landowners could more efficiently manage and transfer rights for a fraction of previous prices.
Intellectual Property (IP) Licenses
IP is a nuanced field ready for a transformation. When placed on the blockchain, brand and copyright filings can be accessible to the world. Entries are permanent and time-stamped, enabling the blockchain to minimize misunderstandings that could arise between parties. And before investing a new trademark, the blockchain’s algorithm automatically seeks transaction histories to eliminate duplicate or suspiciously related requests.
What is next in store for blockchain in the legal arena?
Despite the modernized, automated processes (and latent fears), the blockchain isn’t about to put legal experts out of work anytime soon. For blockchain to display reality in the legal industry, techies and legal experts must work together to share and expand against their expertise.
As tech experts and lawyers work collectively to move contracts and records onto the blockchain, many issues remain to be answered. As technology develops and becomes more integrated within the industry, legal experts will continue to explore how they can move more complex businesses to the blockchain. The technology is increasing outside of the world of investment. And it’s only a topic of time before it transforms everything we thought we knew—about the legal area and everything.