Posting Point
Many law firms are experiencing the burden of aggregation, processing and analysis for building a case. Both primary and secondary data of firms are stored in the database. Later, these data are used by litigators for executing case studies. These data are sensitive and might get compromised. The risk of fraud, leaks and breaches elevates in the law firms. Providing full security to the complete process of law-related documents and exchanging these documents is a costly affair and elongated process. Blockchain has shown light to the financial sector and can prove beneficial to law firms too. Blockchain secure documents, you can seamlessly secure and store legal documents.
Issues faced by the legal industry
Many legal firms are run by cybersecurity and GDPR. Cyber Security problems are well-known by people in recent years. Cases of data fraud and leaks are on increase. Another issue is human capital. Due to increased digitised databases and distance work, legal work is getting hindered. Productivity and efficiency are missing in legal firms if not met with huge human capital.
Using blockchain technology in the legal sector
Blockchain is a distributed ledger that creates records of transactions (peer-to-peer) without the requirement of an authority. This model is effective as it is based on the mechanism of distributed consensus. When once data gets recorded, that can not be changed or modified without affecting every existing data block. A broad range of practice areas is there, where blockchain can be the game-changer. It can transform and simplify legal works by enabling several lines of business. Blockchain encrypted documents can offer complete security to sensitive legal documents.
What are the advantages of blockchain technology in the legal industry?
There are numerous benefits that blockchain can offer to legal firms. Some of them are:
a) Law firms can become more accessible: Lawyers can implement blockchain technology for simplifying, facilitating and streamlining document work. Through this technology, signing digitally and storing legal documents can be easy. With smart contracts, scripted texts and automated contract management, layers can reduce excessive time spent on personalising, preparing and managing the law documents. The cost savings get passed on to lawyer’s customers. Blockchain technology standardises access to the justice system by chopping customer complexity. In the end, it lowers bulky legal fees.
b) Legal sector can become more transparent: The feature of distributed ledger technology makes data accessible to every party to an agreement. Contracts based on blockchain technology have no place for misinterpretation. Law firms can maintain precise custody of valuable legal records with blockchain. This will reduce the chances of disputes. Once the details of papers get entered into the framework of blockchain, they can’t be altered, thus offering great authenticity. The legality of those papers can become more transparent. Through blockchain encrypted QR codes, you can secure your sensitive legal documents with ease.
c) Narrow down cost: Much of the manual tasks can be automatically carried out. This eventually reduces the time allocated for drafting as well as amending the legal documents. These costs are usually passed down to the clients and increase lawyer fees by great amounts. Implementation of smart contracts can lessen the transactional costs between the parties. Blockchain can automatically manage escrow accounts at minimal rates. Lower costs can increase the accessibility of legal services.
d) Automation through blockchain accelerates legal works: According to a report, the lawyers spend around 48 per cent of the time on the administration works that include information transfer between software and updating of client trust ledgers. Using smart contracts can be beneficial to lawyers. These contracts can automate all non-billable administrative and transactional works. This process can cut down excessive manual labour and facilitate legal proceedings faster.
e) Increases efficiency of law firms: Blockchain can disintegrate, streamline and secure numerous processes in the legal sector without dropping any judicial authority. This technology can make legal work efficient and productive while lessening costs and friction.
f) Provides data integrity: The legal documents act like hotcakes to cybercriminals who want to get profits or ill-usage sensitive confidential legal data maintained and created by lawyers. Emailing valuable data every time can pose a serious threat. Lawyers can instead select in storing legal data in a distributed ledger, decentralised for appending feeds and that can enhance data integrity. Any evidence changed or tampered with can lead to unmatched hash value by clearing that some change has happened. Blockchain secure documents including legal ones, you can opt for this technology for securing documents.
Adopting blockchain can be advantageous to legal law firms in real terms. Every day, law firms are facing several challenges, therefore technology is needed for solving issues and streamlining legal processes. Blockchain technology can save time and increase the efficiency of law proceedings. More and more legal firms are embracing blockchain technology. With an encrypted QR code generator, users can generate highly secured digital signatures. We hope in the future the percentage will increase. If you want to secure your legal documents, better to adopt this technology to ward off data theft etc.
