Across the globe, businesses are adopting blockchain technology and legal industry is no exception. Blockchain came into existence in 2008 to act as a virtual ledger for Bitcoin transactions, but this technology has now evolved in ways that nobody would have imagined at the time of its launch.
Blockchain forms an immutable and transparent public ledger to gather information. It can become perfect for the legal sector to securely preserve sensitive data. It appears certain that blockchain will be a huge force for change in the legal system. Blockchain technology can immensely alter document storage management and change how people authenticate a diversity of transactions. It can even reinvent the laborious procedures of writing, revising, and managing contracts. But lawyers should put efforts into understanding this possibly disruptive technology to secure documents and ensure efficiency.
Presently legal documents are in abundance as they have always been. It means they are written in hard copy having physical signatures from all needed parties to create a legally binding agreement. With stacks of accompanying administrative work (imagine the boundless quantities of paper and the constant whine of scanners and photocopiers), creating a contract is extremely time-consuming and tedious.
Blockchain can fully digitize and disrupt this procedure with smart contracts. With this, the code writes the contracts, with obligations being activated and performed completely automated. The formation and execution of contracts are automatic directly between the relevant parties, with minimal or no intervention from legal third parties. Payment disputes can end too! Smart contracts automatically activate payments of funds agreed at the beginning once the contractual terms are fulfilled.
Land Registries & Property Deeds
Blockchain in land registries and property deeds can be possible mainly in developing nations where land ownership is not correctly documented. Presently, the multiple listing service or MLS information is outdated, and blockchain tech can bring a revolution to it.
The blockchain can permit an updated, transparent, and blockchain encrypted document record that brokers can have easy access to. Hence it allows collaboration and boosts property sales. Individuals can also buy and sell properties immediately.
The blockchain permits companies to offer proof of existence easily. Distrust in Notary systems worldwide can get solved with document authentication and signature verification with timestamps and hashes. Once the document gets hashed on the blockchain, one can independently verify it. For example, a person can scan the secure QR code to access and verify the data in no time. QR code shares the actual data only if the hash value it contains matches the hash value on the blockchain network. Hence, blockchain verification ensures complete authenticity and peace of mind.
The Bottom Line
By introducing the blockchain to the legal system, the sector can get more time to concentrate on important things rather than mundane tasks. Transferring case files and fragments of evidence can become easy. Hence, the system can become less reliant on paper. Blockchain tech is a transformative and adaptive technology, and it can help accelerate the whole legal process. Find out how you can integrate blockchain in your legal firm with ProofEasy.