Blockchain technology is being incorporated into the day to day legal practices. Lawyers are leveraging the technology to cater for clients' needs in the best way possible. Major law firms have already made blockchain the core way of how their modern legal practices operate. This is the technology underpinning bitcoin, and other cryptocurrencies and the records of transactions are kept on a digital ledger which allows for public scrutiny. One of the breakthroughs that were made possible thanks to this technology is smart contracts which allow coded programs to act on predefined triggers. Besides, the technology is also used to build tools and infrastructure that lawyers can use to verify legal documents, draft contracts, and record commercial transactions.
1. Saves Time and Streamlines Routine Tasks
Due to blockchain capacity and capabilities, it can be used as a spine to manage the entire legal industry. Lawyers interested in blockchain technology have grown dramatically, gathering enterprise in exploring the technology for legal purposes. With the help of this technology, law firms can save time on routine tasks and free up time for legal insights.
Aside from allowing attorneys to generate legal agreements automatically, the technology can also be used to embed smart contracts that are then executed on the blockchain. Using blockchain increases the integrity of legal documents. With blockchain, law firms can;
• Build more efficient systems
• Decrease the cost of legal services
• Ensure clients get the legal services they need
2. Efficient and Uniform
Uniformity is an important aspect for every law firm since lawyers handle details that need to be accurate at all times. Blockchain technology has been used to come up with platforms that provide lawyers with templates they can use to generate legal documents. This not only saves time and resources but also ensures all legal documents are uniform and organized. In the contracting realm, blockchain allows two parties to have seamless negotiations when previous drafts have been marked up.
Gathering of signatures from both parties is another important aspect in the contracting realm and blockchain technology ensures the signatures are securely stored once the agreement is finalized. With embedded self-executing smart contracts on agreements, law firms can pay employees in real time too. Ideally, blockchain connects individual services found on each step of document generation and contracting. Blockchain can push the legal industry towards more standardization so that work done by lawyers on a day to day basis is uniform.
3. Authentic Legal Documents
Aside from uniformity, authenticity is another crucial factor in the legal field. Blockchain technology allows lawyers to achieve immutable records of finalized contracts. With time-stamped signatures, there is no room, for disputes when it comes to verifying the authenticity of a legal document. As a result, blockchain-based records are admissible as evidence in court. It is important to note that there have been laws enacted to acknowledge the legality of signatures and contracts secured on the blockchain.
Blockchain allows lawyers to present evidence that people can trust since it is not contingent to a particular vendor system. For instance, if a contract is signed today, the parties involved can confirm this years later. Lawyers partner with businesses and built proof concepts around monitoring process servers. Such systems can notify individuals of lawsuits so that they act on them in good time.
4. Improves the Skills of Lawyers
Routine and basic contract work done by law firms can be taken up by solutions based on blockchain technology so that attorneys focus more on complex agreements. Blockchain technology allows lawyers to set rules behind smart contract coding carefully. The agreements with embedded smart contract triggers reflect these rules.
Additionally, the law firm's data analysis capabilities can be drastically enhanced with the incorporation of blockchain technology. This is achieved by feeding data on blockchain into machine learning (ML) algorithms. Even though lawyers don't need to be coders as they can easily partner with engineers, it is essential that they know what the process involves and the right questions to ask.
5. Used in Carrying Out Investigations
Blockchain has the potential to disrupt every industry, including the legal field. Taking criminal justice as an example, blockchain can be used to simplify and speed up criminal investigations. The technology can be incorporated into evidence gathering and the correction system by combining blockchain and artificial intelligence (AI) algorithms.
Besides, the acquisition, dissemination, and authentification of evidence are improved since, with blockchain, lawyers and law enforcement officials can easily detect and prevent evidence tampering. Another breakthrough is blockchain can be used to determine if a convict is likely to become a repeat offender.
Since research shows that statistical observations incorporated into human judgement help law enforcement arrive at a more accurate conclusion, this is a step in the right direction. Even criminal enterprises leverage the encrypted nature of blockchain to carry out illegal transactions; authorities can fight back because cryptocurrencies operate on a decentralized blockchain with a transparent nature that invites public scrutiny. Lawyers then have an easy time gathering evidence that will be admissible in a court of law.
6. Useful in Evidence Collection
Gathering and validation of evidence have also been made easier and more efficient with blockchain technology. Usually, the whole process involves a chain of custody with conditions that have to be met. Blockchain technology has made it easier for all these five conditions to be met;
• Each party should be in a position to know the entire evidence gathering and validation process
• Evidence should not be corrupted or altered at any time
• Parties should provide proof of their identities
• Evidence should not be tampered with during changeovers
• Evidence should be carefully monitored from the beginning of the process up until it has to be destroyed
Since lawyers use blockchain to store the evidence in a digital ledger, it is impossible to tamper with the acquired evidence in any way. Besides, the technology offers indefinite storage without the need for a central repository
Even though blockchain technology has only been around for a decade or so, its value is undeniable, and as such, it is necessary for lawyers to learn advanced technologies such as this. The incorporation of blockchain in different segments in the legal field streamlines judicial processes and administrative tasks.