Blockchain technology is exciting because it can disrupt and transform entire industries – including the legal sector. The concept of blockchain is intriguing. It stores enormous amounts of data, and it secures that information within a transparent and irreversible ledger. But how can you apply blockchain technology within your legal practice? Read on to learn more about what blockchain technology is, and how beneficial it is to the legal profession.
What is Blockchain Technology?
Blockchain technology is not new (it has been around since 2009), but what exactly is it? Blockchain is a network of decentralized computers that automatically records information that no one can alter. This technology is valuable for industries (like the legal sector) that need to safeguard and store sensitive information.
Blockchain technology is a comprehensive and up-to-date digital ledger. Each piece of information it records is encrypted and time-stamped. Blockchain is being used by many companies that want to streamline their data and make it remains protected. Lawyers and CPAs just like you can use the power of blockchain technology to automate processes, increase integrity, and reduce the amount of time spent on mundane tasks.
Practical Uses of Blockchain in the Legal Industry
Blockchain technology can make an enormous impact on the legal industry. Here are some examples of how it can help you.
- Record Keeping – Blockchain enables you to share and store documents quickly and securely amongst multiple parties. It decreases the amount of physical paperwork you need, and it also reduces the risk of human error. Additionally, you can use blockchain to process legal notices, and that sure can be helpful when a party involved does not have a set (or known) address. Blockchain is also private, so you can record an event or document keep private and only invite those how are a relevant party, unlike a County or State Recorders office. Think Contracts or Corporate Stock Ledgers or Leases!
- Smart Contracts – With blockchain technology, you can speed up your “deal-making processes” with smart contracts. Since these contracts rely on blockchain, they can execute automatically when the conditions of both parties are met. Smart contracts are virtually impossible to counterfeit, can help you solve disputes more effectively, and can also save you a lot of work.
- Estate Planning – Blockchain technology can help you store trusts and wills for your clients securely and quickly. And once they exist, they cannot be changed or lost. Amendments can also be ledgered. However, they are still very private since only the beneficiaries can decode the encrypted address. Plus, when the time comes, the trusts and wills are executed automatically.
- Property Rights – Property rights include how property is bought, rented, and sold. Blockchain helps to store all the essential data for property rights – including details when ownership changes hands. Blockchain technology is especially helpful to resolve property disputes in developing countries that have less infrastructure to protect individual property rights.
- Intellectual Property – Similar to real estate, blockchain can ensure the secure recording of your clients’ intellectual property rights. It helps professionals like artists, musicians, and authors to manage the rights to their work and easily settle any disputes. Blockchain technology is the ultimate copyright.
FileJet Can Customize Blockchain for Law Firms
Now that you know the value in blockchain technology, it may be time to see what it can do for your firm. FileJet has built the first blockchain available for legal and finance professionals, but we need your help to tell us how you’d like to use it. With your help, we can customize a blockchain solution for your firm. Please contact us today to start the conversation.