Blockchain, as part of the legal sector, has great potential. The technology underpinning the crypto currencies is slowly becoming integral for industries, which also applies to the present legal sector.
The legal industry was an exception concerning some features. The sector needs to be faster to adopt modern ways actively and preferred time-tested or traditional methods.
The trends are indicative of a changing environment. The profession is paying particular attention to the potential benefits blockchain can impart. Moreover, significant efforts are towards exploring and better leveraging the technology to suit the present ways.
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Blockchain Becoming Inevitable for the Legal Sector
Blockchain technology can be used by lawyers to automate and simplify their transaction work, as well as to sign and immutably store legal agreements digitally.
The amount of work required to create, customize, and maintain ordinary legal documents is decreased through programmed text, intelligent contracts, and automated contract administration. As a result, unnecessary expenses are eliminated as well. Customers also receive the benefit of less expenditure, and legal assistance turns more accessible.
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The process involved in some of the legal activities can be extremely long. It is a fact that the industry still relies heavily on manual procedures. Blockchain can bring in huge differences here.
Numerous manual procedures can be completed automatically, drastically reducing the time spent creating and revising legal papers. Unfortunately, this expense is typically passed along to clients, driving up the cost of an attorney’s hourly rate.
Intelligent contracts will speed up and make transactions between parties less expensive. For example, a cost-effective algorithm can transparently and automatically manage escrow accounts for a fraction of the price of manual labor. In addition, lower prices will result in more accessibility and demand for legal services.
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Blockchain technology can automate, simplify, and re-orient numerous legal business procedures without sacrificing any judicial authority. These tasks will automatically reduce costs.
The legal industry is not resistant to cyber-attacks. Instead, it is more susceptible, and the effect of a hack can be long-standing or irretrievable. Secret legal files are sources of critical information. These documents may have to be mailed or transferred often between people involved in a process.
Instead of being transferred across multiple channels or mailed repeatedly, the documents can be stored in a decentralized platform.
A society’s economic activities are influenced by the distribution of property rights and the existence of transaction costs, yet these structures are primarily based on pre-digital times. Blockchain can lead to highly desirable results and change the scenario drastically.
As more and more law firms are embracing Blockchain to streamline processes, many have joined the ‘Global Legal Blockchain Consortium’ to make the process hassle-free and smooth. With more participation, the consortium will be able to play an instrumental role in regulating the use of blockchain technology in legal matters.
Also, Blockchain, as part of the legal industry, requires definite or clear-set regulations. Despite its critical benefits, Blockchain raises a range of innovative legal issues. It takes multidisciplinary legal knowledge and experience to understand and devise strategies according to the design challenges associated with a commercial blockchain.