The impact of blockchain technology on the legal landscape
The capacity to share digital material while ensuring that it is not copied is driving legal firms to adopt blockchain technology. “The blockchain is an incorruptible digital log of economic transactions that can be configured to record not just financial transactions but almost everything of value,” according to Don and Alex Tapscott, authors of Blockchain Revolution.
When it comes to digital technology, one of the main concerns that most lawyers have is privacy. Most law firms place a premium on confidentiality. We owe our clients a responsibility of confidentiality, frequently establish private agreements, and demand a high level of privacy when it comes to our data. In terms of privacy, the internet falls short. Data breaches and the public release of private information are frequently featured in the news. Blockchain verifies a user’s information and records all transactions in a permanent public ledger. Blockchain essentially eliminates the possibility of private information being exposed by keeping an individual’s information safe. All activity is recorded in a transparent and incorruptible digital ledger. It’s part of the reason why digital currencies like bitcoin have grown to be worth roughly $9 billion in the United States alone.
Law Firm Collaborations
Any legal document can benefit from blockchain technology. Documents are secure because it is possible to examine what has happened to a record and to validate a user’s information. This allows lawyers to communicate “smart documents” and “smart contracts,” and it may be used in almost any profession. Blockchain can provide a visible and incorruptible ledger of what has happened, whether you are drafting corporate contracts or wills.
To share information with the legal community, law firms have begun collaborating with software companies. The Legal Centre of Excellence (LCoE) is a new initiative from R3 that intends to help lawyers better understand distributed ledger technology. The program has already attracted ten law firms. The goal of the collaboration is to give “a venue for the worldwide legal community to acquire the latest information on blockchain technology and R3’s blockchain platform Corda, as well as discuss best practices.” 1
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