Do you know that often the legal industry is referred to as mature for disruption and criticized for being very slow to adopt changes? The financial sector has undergone transformation through the usage of blockchain. In this digital era, change is inevitable all because of data theft, forgery and fraud. One solution has to resolve issues in the legal industry such as time-taking processes, costly legal procedures etc. With blockchain technology, legal works can get more simplified and more people can access them. Blockchain secures documents and with that legal documents can be seamlessly secured.
What is blockchain technology?
Blockchain technology is the system to record information in a secured and tamper-proof way. It is almost impossible to hack, change or modify the system. The blockchain is a decentralized digital ledger of transactions which is distributed across the network of several computer systems on the blockchain.
Why blockchain in the legal industry?
All the inherent features of blockchain make it beneficial for most industries. Almost every industry, business or organization has to deal with loads of data or documents and it is not at all easy to deal with them manually. Especially in the legal sector, loads of data are processed every day. Blockchain can be helpful in this industry. With the help of blockchain document security solutions, you can seamlessly secure your sensitive documents.
Some potential use cases of blockchain in the legal sector:
a) Smart Contracts
What are smart contacts? Smart contracts are computer protocols to digitally verify and facilitate negotiation. Smart contracts permit transactions without any third party. All these transactions are irreversible and trackable on the blockchain. These contracts help the parties to exchange, properties, shares and many things of value in a transparent way while preventing the interference of middlemen. Smart contracts define penalties and rules all around agreements and build the potential of enforcing the obligations automatically. As the smart contracts stay live on the blockchain, contract users can inspect those codes and get acquainted with the functions, rules & limitations of the contract.
b) Proof of existence
What is Proof of existence? Proof of Existence (PoF) is an act to verify the existence of digital files through time-stamped transactions. It is vital to prove the existence of data. Proving the existence of legal data/documents is useful mainly for entrepreneurs & attorneys. Timestamping data maintains confidentiality and is ideal for legal applications. Clients or attorneys can utilize PoF to prove the existence of documents that include – deed, will, promissory notes, directives etc. Blockchain secure QR codes and with that, you can validate and verify legal documents.
c) Protection of Intellectual property rights
It is a difficult task to protect the intellectual property rights of either individual persons or corporations. With blockchain technology, the time-consuming process can become simple and easy. This technology can revolutionize the way trademarks & patents are tackled.
Adoption of blockchain technology in the legal industry can be advantageous. There are so many use cases beyond the above-mentioned ones. Blockchain technology is a decentralized ledger which has its inherent features of security and tamper-proofing. Blockchain secure QR codes can help users to secure their legal documents.