Blockchain, the fundamental technology behind bitcoin and other cryptocurrencies, has a massive range of use cases that stretch way beyond finance. The easiest way you can think of it is as a decentralized digital ledger.
Blockchain is one of the most promising fresh technologies to emerge from the last decade. Financial institutions, public and private sector, healthcare ,manufacturing, and energy companies are all accepting digital business trends. However, law firms have mostly lagged behind other industries in terms of adopting new technology. But, contrary to other technologies, the blockchain technology is a safer tool for law firms.
Adopting Blockchain Technology in the Legal Sector
Blockchain is a replicating, distributed ledger that develops a record of peer-to-peer transactions in the absence of a trusted authority. This model is powerful and effective because it works on a distributed consensus. It means all parties settle on the value and transaction consistency.
Not astoundingly, the technology experienced initial acceptance because it permitted a place where funds payments as well as financial transfers were quick and transparent. It was without the requirement for intermediary financial institutions because of qr code security. Additionally, once blockchain has recorded and encrypted documents, nobody can modify it without affecting all current blocks of data.
There is a huge range of practice areas where blockchain technology can emerge as a major player. It is right from supporting the altering nature of legal work to permitting new lines of business and distinguishing service offerings.
Law Firms have Started Relying on Blockchain
Law firms that are experiencing challenges, such as diminishing demand from corporate clients and robust competition from non-traditional players, are considering blockchain technology for two main reasons:
- The foremost reason is smart contracts that includes scripted logic linked to simple Ricardian contracts. Fundamentally, smart contracts are groups of terms and conditions that can get automated. Here, blockchain appears to be the perfect & safest way to do that.
- Second reason law firms are keen in blockchain technology is its capability to securely record events for long duration. This could include irrefutable intellectual property claims as well as criminal charges associated with a specific case or criminal procedure.
Even though wide-scale adoption of blockchain has not taken place yet, there are proof-of-concept projects emerging in nearly every industry. More and more law firms need to understand about this technology so they can be self-confident to guide and serve clients in this modern day.
Ensures Utmost Security of Legal Documents
The decentralized aspect of blockchain technology is a security feature that allows the digitization of legal material. By distributing data through a decentralized network of computers, blockchain is hard to hack and it prevents the confidential information from getting copied. Once law firms secure documents using blockchain technology , nobody can hack them. These documents contain an encrypted qr code that can be used to verify the authenticity of the documents . This blockchain code would reveal the data only if the hash value it has matches with the hash value on the QR code on the blockchain. Hence, the user can be sure that the document they are viewing is secure and tamperproof.
The Bottom Line
Since blockchain technology continues to evolve in the legal sector, developers are discovering fresh uses every year. Currently given the secure and stable nature of blockchain, the technology is seen as an effective, secure, and useful way for legal professionals to leverage technology in solving manifold legal issues. Know more about blockchain solutions like qr code authentication system and more with ProofEasy.