Uses of Blockchain in the Legal Industry
WHAT IS BLOCKCHAIN
Blockchain is a shared, immutable ledger for recording transactions, tracking assets and building trust.
WHAT BLOCKCHAIN DOES
Blockchain is a type of shared database that differs from a typical database in the way that it stores information; blockchains store data in blocks that are then linked together via cryptography.
As new data comes in, it is entered into a fresh block. Once the block is filled with data, it is chained onto the previous block, which makes the data chained together in chronological order.
Different types of information can be stored on a blockchain, but the most common use so far has been as a ledger for transactions.
In Bitcoin’s case, blockchain is used in a decentralized way so that no single person or group has control — rather, all users collectively retain control.
Decentralized blockchains are immutable, which means that the data entered is irreversible. For Bitcoin, this means that transactions are permanently recorded and viewable to anyone.
Blockchain technology is becoming an eventual element which could disrupt every industry around the world. Widely known for its ability to store information in a transparent and immutable ledger, blockchain offers businesses a higher level of precision. Legal industries are also looking to revolutionize their operations with the distributed ledger technology.
Pros and Cons of Blockchain
Pros
- Improved accuracy by removing human involvement in verification
- Cost reductions by eliminating third-party verification
- Decentralization makes it harder to tamper with
- Transactions are secure, private, and efficient
- Transparent technology
- Provides a banking alternative and a way to secure personal information for citizens of countries with unstable or underdeveloped governments
Cons
- Significant technology cost associated with mining
- Low transactions per second
- History of use in illicit activities, such as on the dark web
- Regulation varies by jurisdiction and remains uncertain
- Data storage limitations
Use case of Blockchain in legal Industry
The transparent, immutable and secure nature of the blockchain will allow lawyers to record and solve various types of legal matters. From property records to court records, chains of custody, UCC filings, funds transfers, legal opinions, and contracts, there can be a wide range of ledger-based activities in the legal industry.
Blockchain could have multiple use-cases in the legal industry, including smart contracts, land registry, intellectual property rights, chain of custody, litigation and settlements, and financial transactions.
Where blockchain technology can be used in legal sector in :
- Electronic Signatures
- Intellectual Property
- Property Rights
- Chain of Custody
- Tokenization
- Decentralized Autonomous Organizations (DAO)
- Limited Liability Autonomous Organizations (LAO)
- Automated Regulatory Compliance
- Machine to Machine Payments
- Blockchain-Based Arbitration System
How can Blockchain help Lawyers?
By storing and validating records of transactions, legal firms will be able to maintain an accurate chain of custody and other legitimate activities on the blockchain. … The transparent, immutable, and secure nature of the blockchain will allow lawyers to record and solve various types of legal matters.
The quality work of a Lawyer will not be affected by technology
The onset and development of technology will not in any way usurp the work carried out by lawyers.
Blockchain, Artificial Intelligence, or any other technology using the methods of deep learning, will only improve the efficiency of lawyers and aid in research, contract review, or proofreading.
At most, technology can replace entry-level lawyers. But, in no stretch of the imagination, will AI robots or any other technology be able to argue in courts, deal with clients, critically analyze the law, prepare more detailed contracts, etc.
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