Ever thought of upgrading your legal operations on blockchain technology? Ever thought about why industries are stepping towards blockchain-based applications? What if I tell you blockchain will change the face of legal tech five years down the line?
Understanding Blockchain Technology
Ok! To start with, let’s get a basic understanding of what blockchain is! Simply framed, Blockchain Technology is one type of Distributed Ledger Technology (DLT). It organizes data into blocks and later connects them as nodes. The World Bank mentioned in a statement that distributed ledger can change the face of the global financial industry.
Distributed ledgers work on independent computers, used to record transactions and share information securely. Also, it generates tamper-resistant data. Imagine a platform where you can keep your evidence safe and untampered. That’s the strength blockchain technology holds as a legal tech.
When was the first time you heard about blockchain? I am sure not very long. A few years back possibly. Blockchain tech has gained high traction in the last few years, especially in the finance sector. However, now developers and scientists are working on discovering new use cases year by year. Legal professionals can use blockchain to solve various legal issues such as land matters, IP rights, litigations, settlements & financial transactions, and smart contracts.
Utilizing Blockchain as an Effective Legal Tech
Now the question is: How can legal professionals utilize blockchain technology to foster profitability?
1. Smart Contracts
When we picture smart contracts, a question arises: Will smart contracts replace lawyers? Smart contracts are self-executing codes framed on the blockchain with defined agreement terms. Smart contracts are deployed once set criteria are met. With smart contracts, you don’t need a mediator in between. Smart contracts come into action when law firms deal in property management and other related tasks. This will help automate the pay between landlords and lawyers. And then, despite the codes, lawyers must specify the conditional formatting.
2. Dispute Resolution
Dispute Management is a crucial issue when law firms deal with business entities. The process is as complex as any trigonometry problem. Revolving around business entities, juries, biased judgments, and applied laws makes dispute resolution a tough matter to solve.
However, with smart contracts, this can be simplified from a trigonometry problem to a simple math calculation of 2+2. Imagine a law firm offering dispute resolution based on smart contracts. This law firm will pick random juries for the case and ask them to be a part of the pool. And Whoosh! The money will be transferred to the winning party based on evidence.
3. Intellectual Property Rights
If you know what Metaverse is and how law firms can take advantage of stepping into the same, you will know how important IP rights are. With the world moving forward to Web 3.0 and extreme digitalization authors, creators and artists are in slight danger. However, law firms can help them prevent unauthorized access to their creations.
How? Once a lawyer uploads terms of sale or uses in a smart contract, the property can only be accessed when the defined terms are met.
4. Advancing to Mixed Reality – Metaverse
Metaverse market is worth $38.7 Billion USD and rising at an extensive growth rate. And somehow this is the least touched area of expertise by lawyers. Metaverse allows users to buy lands and properties within the platform. Not just properties, it’s as vast as a planet in itself with thousands of organizations operating in it, including some big names such as Google, Facebook, IBM, Nvidia, and more. And when land acquisitions and property comes into play, lawyers can find an unmatched space.
Improvising Law Firms
Blockchain technology is the future of automation and legal tech. Legal professionals must understand how to implement automation and legal tech in law firms. If not blockchain technology, it’s crucial to start with a law firm management software that can help you automate legal operations in your law firm.