The blockchain is no more an outlandish thing for people living in the present era. The technology started its journey being the driving force behind Bitcoins but now has grown into something beyond. The technology, with its unleashing potential, has entered almost every industry, business, and process. And need not to say, the Legal industry is one of them.
For those who are still not clear with the concept of Blockchain, let’s begin with what is Blockchain followed by how it is disrupting the world of legal practices.
Blockchain technology is termed as a digitized, decentralized and public ledger that can record transactions between two parties efficiently and verifiable with the help of cryptography.
In this technology, the data is stored into blocks containing a hash pointer linking it with the previous block, a timestamp and transaction data. The whole mechanism is designed such that data stored in any particular block can be accessed anytime and anywhere, but cannot be changed or deleted without the consent of the related blocks, which boost the transparency and security in the process.
Blockchain in Legal Industry
Blockchain technology is bringing a wave of disruption in the world of legal practices in numerous ways. It is enticing the legal businesses with different characteristics, especially with the feature of securing information in an entrenched and transparent ledger.
Some of the best applications of Blockchain in the legal industry:
Ease of Legal Processes
Blockchain, with the introduction of Smart Contracts, is making the process of holding records and performing all related processes possible without any human intervention. For example, Let’s say you have created a contract that defines that once your patent is approved by the Patent and Trademark Office (PTO), your partners will get a share of 10 percent. Now, the blockchain will continue to check if the patent was approved or not. Once approved, it will initiate a process releasing the shares to the partners. This way, the technology lessens the delays in the legal processes – making it easy, faster and effortless.
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Publicly Accessible Records
Blockchain technology will make it possible to maintain and secure public records – to manage census data and other related information of the citizens and businesses within its jurisdiction like birth/death record, business licenses, marital status, criminal record, etc.
Interestingly, various African countries are using Blockchain technology for keeping the census information incorporated with the voter records information to have a central storehouse of eligible citizens and thus make it easy to access the complete information about an individual altogether.
Better Property Right Management
Blockchain technology will introduce a transparent, secure and immutable record filing process for property rights that one could access anytime and anywhere. It will make it possible for the one to access all kinds of patents, trademarks, and copyrights associated with a single property, no matter at which point of automation he is.
The technology is proving to be the best solution for the most challenging aspect of developing countries, i.e. to get access to the information about who owns a land area. The blockchain is providing a public secure ledger who will be accessible by government, landowner and all the people involved. The ledger will display information about the ownership along with the date when the ownership was switched. This way, it will help in making the land exchange easier and unbiased; limiting the disputes and frauds associated with land resources.
Several Latin American nations are planning to use blockchain technology as a channel to keep a track of who possesses a piece of land and so on.
Better Time Optimization
The Blockchain technology is taken into consideration for building tools and infrastructure with which the legal practitioners can draft contracts, record commercial transactions as well as determine the authenticity of a legal document.
The most overwhelming practical blockchain tools are OpenLaw and Integra Ledger. While the former empowers the lawyers to automatically create legal agreements and introduce the concept of smart contracts, the latter facilitates a permission blockchain to enhance the integrity of legal documents.
This way, the Blockchain technology helps the legal practitioners to save time from monotonous tasks and invest more time on complex legal issues and ensure success.
As you might have learned from the above, the blockchain technology is on the pace to disrupt the legal industry. The technology is not yet adopted at a wider scale but has the potential to become the primary medium for serving clients with better opportunities and transform the industry completely. The lawyers will turn to a blockchain app development company for leveraging the benefits of Blockchain technology in almost every work process to remain in the industry.