The legal sector has been slow to modernize. Most legal departments and firms have a lot of paperwork to manage, which can mean keeping accurate records for each case is challenging and time-consuming.
Blockchain eliminates labor-intensive processes while providing cost savings, efficiency, data integrity, and transparency to the legal sector. This means that both large and small firms can become Blockchain-enabled.
What is Blockchain?
A Blockchain is a distributed ledger or database shared on the nodes of a network. The Blockchain electronically stores information in a digital format. Blockchain technology is popular for its contribution to cryptocurrencies such as Bitcoin and Ethereum since it provides decentralized and secure transaction records. The technology’s innovation guarantees the security and fidelity of record data and builds trust without requiring a trusted third party.
To visualize this better, imagine having a digital document not sent or transferred as a copy to other parties and distributed in a synchronous and shared method such as Google Docs. While Blockchain is a bit complex, the above analogy can help show how decentralized distribution chains allow involved individuals to access the document simultaneously. This makes operations transparent for anyone who requires access.
How is the Legal Industry Using Blockchain?
As Blockchain technology evolves, players in the legal industry, scientists, and developers discover new uses every year. The secure and stable nature of Blockchain helps lawyers and other professionals in the legal industry to use technology to solve several legal problems. The technology has several uses in the legal sector, including chain of custody, settlements, intellectual property rights, financial transactions, and land registry.
Soon, technology will significantly impact how various services are offered. Lawyers can use Blockchain to promote the following:
Accessibility: Lawyers can use distributed ledger technology to simplify and streamline legal documents and transactional work. Automated contract management, smart contracts, and scripted text reduce the time spent personalizing, maintaining, and preparing law documents.
Automation: Lawyers spend most of their time performing administrative tasks such as updating client ledgers. Lawyers can automate transactional work and non-billable administrative tasks using prefabricated smart contracts and legal agreement repositories.
Transparency: Blockchain technology creates a shared database or ledger that all entities can access in an agreement. With distributed ledger technology, there is no room for misinterpretation or surprises.
How Law Firms Can Use Blockchain to Stay Ahead
Law firms should focus on understanding how their practices and services could leverage the Blockchain. Lawyers should also prepare themselves for the effects of technology on legal frameworks. With legal expertise and an understanding of the functions of Blockchain networking, law firms can integrate their services and practices to acquire authority in the industry.
Enroll in TI:GER Today
Technological Innovation: Generating Economic Results aims to bring together graduate students in various disciplines to work on projects to transform promising research into economically productive projects. This will help promote innovation and teamwork. Ready to join the program? Enroll today to get started.