Legal Industry
LexInter | January 28, 2022 | 0 Comments

Blockchain And The Legal Industry

Blockchain technology has many applications: from education to marketing, and so on. There are tons of different ways to use blockchain. The legal industry is no exception.

But what is the common thing between the cryptocurrency world represented by Bitcoin, Ethereum, Dogecoin, Litecoin, and law? In this article, we will check out how cryptocurrency can actually be of help.

Transparency In The Legal Industry

When to Hire a Criminal Defense Lawyer

Distributed ledger technology creates shared accessibility by all parties to an agreement. Smart contracts are blockchain-based contracts that use code to better understand transactions and identify issues. With smart contracts that are built into a blockchain network, it’s possible to track and even predict the flows of information and goods between partners.

Reduced Costs

Many of the manual tasks in the legal industry can be automated and should not cost exorbitant hourly rates. Lowering costs will open the doors to more affordable legal counsel, allowing everyday people to seek legal help when they need it but might not be able to afford it. The introduction of smart contracts will put less strain on heavily overburdened arbitration departments, allowing for lower costs and greater access to justice.

Also, by using cryptocurrency as a payment method, more people who buy Dogecoin or Bitcoin can actually pay for legal services.

Data Integrity

In the event of a hacker attack, legal documents uploaded on a blockchain are tamper-proof and cannot be edited. This ensures that data integrity is maintained and provides evidence of changes in the event of a breach. Since legal firms are often targeted by hackers looking to profit from confidential information, storing sensitive data on decentralized, distributed ledger ledgers will allow for greater security.

Intellectual Property

Intellectual property

Blockchain technology can be leveraged to improve intellectual property protection. By leveraging the immutability and security of the public ledger, creators can register a time-stamp of their original work or piece of content, creating an undeniable proof of ownership for themselves. Blockchain technology can help creators sell their ideas directly to the consumer by cutting down on piracy and counterfeit products, eliminating intermediary costs and risks.

Property Rights

Property rights and transaction costs differ from society to society. Blockchain technology, which is also revolutionizing the way we process information, could be used to subvert costly intermediaries and manage property rights with greater accuracy. By updating the way we think about property rights, blockchain architecture will streamline the management of these rights and reduce transaction costs.

Chain Of Custody

Producing irrefutable evidence can be a costly and lengthy process. Blockchain technology is poised to improve these issues by allowing for immutable and traceable data that cannot be manipulated. A timestamp appended information to the token, which can then be distributed to a variety of stakeholders or interested parties without altering the original information.

Criminal Cases

Criminal Justice Degree

The criminal justice system has not yet moved into the 21st century, particularly in sharing records. However, blockchain technology could be applied to make it more efficient. Records maintained on a blockchain network would be instantly shared with the appropriate agencies and members of the public who have a vested interest in the legal status of defendants. Even Interpol admits how blockchain could be very useful in solving cases.

Dispute Resolution

The world of litigation is complex and time-consuming. Litigation faces several problems when engaging the justice system, including biased courts and unnecessarily complicated proceedings. Each party in a case doesn’t have equal power, and the rules of the game are dictated by individual courts. Until now, arbitration has been a costly and slow process. A unified system of justice might be achieved with blockchain since everyone will have access to key information on each case.

Automated Settlements

With the use of blockchain networks, companies can help in the process of transferring property ownership or business shares. Currently, government offices or law firms that oversee and handle these transactions are extremely diligent because of the sheer volume of transactions they have to process. However, since all information is kept on a blockchain network, this will eliminate the human error factor because all compliance and restrictions happen automatically thanks to built-in protocols.

Summary

It’s hard to believe that the legal industry is still doing things the same way as it did in the 1900s. For example, each time someone signed a paper-based contract, another paper had to be drawn up to ensure that all details were identical when it came time for enforcement. In other cases, digital signatures were simply not accepted as admissible in court. Blockchain technology has the power to eliminate these problems entirely.

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