The legal industry is often seen as ready for disruption and, in the same sentence, criticized for being sluggish to welcome change. It is high time that the legal sector should consider blockchain technology at all levels. Transactions that Blockchain completes are secure, transparent, and immutable by nature. It is not hard to recognize this technology’s influence on the legal sector. Moreover, with Blockchain encrypted QR code, you can make legal documents immutable and easily accessible. And all this is just a demo.
Blockchain Smart Contracts
Blockchain technology holds massive potential in the changing legal landscape, mainly automating routine legal processes through smart contracts. Smart contracts include scripted logic, terms and conditions that permit the automatic execution of general contracts, like the renewal of any lease agreement or decision of a non-disclosure agreement. All this does not require human oversight or any negotiations.
With smart contracts, Blockchain even establishes the potential for the automatic transmission of assets between different participants on the peer-to-peer network. The preprogramed rules are obeyed without requiring a controlling, central deed of registries to authenticate the transfer of ownership. Hence, it saves time and costs and permits convenient transfers and better customer relations.
A Solution to Security Concerns in the Legal Sector
In Blockchain, a network of computers stores copies of the information. Since it is decentralized, hackers have an extremely tough time manipulating the stored information in this format than with conventional data storage methods. Transaction verification takes place through computer networking.
Blockchain technology is strong. Data gets broken down and distributed throughout the entire network of computers, guaranteeing that each one has a full copy of the ledger. One or even two computers going down is insignificant. The data itself is redundantly backed up.
However, Blockchain’s decentralized yet publicly accessible format can make some people believe that personal data is not protected. Such is not the case. Blockchain promises individual privacy better than any other information-hosting format by permitting users to control their data. Individuals can securely save their data by making blockchain encrypted QR code. Hence, they can share the Qr code with someone if they want them to access the data. Nobody can tamper with such data as the QR code includes a unique hash value that has to match up with the hash value on the blockchain network. Hence, there remains easy yet safe access to data.
Ensures Complete Transparency
Compliance gets built into blockchain-based contracts, so there is no place for doubt. Blockchains use distributed ledger technology and produce a shared ledger available to all interested parties. Hence, everyone would have a check on the legal documents, case studies and more. Nothing can go unnoticed, and everyone will enjoy complete transparency.
Proper Chain of Custody
The highly protected nature of Blockchain makes it much more useful for establishing the chain of custody. With Blockchain, attorneys can track the digital movements of lastingly stored documents without fear of tampering or removal. They can also use it for the digital tagging of physical items. Moreover, one can use GPS tracking to log the different movements, generating undisputable evidence for court proceedings.
The Bottom Line
Blockchain technology has solutions for different legal sector issues. The only need is to adapt the tech and try it out. The key for legal sector professionals is to make sure they have a foot in the door with this technology so that when other types of more traditional openings shut down, they have somewhere constructive and effective to go. If you want to explore blockchain solutions for legal issues; contact experts at ProofEasy and enjoy complete assistance.