In the last two to three years, blockchain has created a lot of “buzz”. Blockchain has already begun to revolutionize the globe. Many companies also started the adoption of blockchain-based systems due to the features that blockchain brings to us. Blockchain technology is secured and scalable. This technology has already paved its way in the legal sphere. Blockchain technology has loads of potential to transform legal processes like the chain of custody, intellectual property rights etc. The method of blockchain document security helps users seamlessly secure their valuable legal documents. Read this article which focuses on applying blockchain technology in the legal sector.

What are the challenges law firms face these days?

1. a) The law firms need to contribute to the knowledge management efforts of clients. It allows them to collaborate with various third parties, content-producing enterprises and researchers. When more touch points seek easy access to sensitive documents, it becomes a big challenge for legal firms to guarantee the security of every document.
2. b) data has revealed that around 70 percent of responding legal firms acknowledge that they spend excess time in legal administrative work. The critical task to be considered to be most colossal is document management.
3. c) In recent years, cyber attacks and hacks have increased and have become sophisticated & targeted. Social engineering has led to the growing risk of data fraud, identity theft etc. Getting easy access to employee passwords, fraud links and many other techniques are the ways through which fraudsters attack legal data.

All these issues can be reduced by using blockchain technology. Both blockchain file sharing and securing can become simple and easy.

What is blockchain technology?

Blockchain technology is much more than cryptocurrencies. Blockchain technology is the decentralized immutable public ledger which records every transaction without any requirement of their parties or intermediary interference. Each transaction & record is indisputable and anonymous which means they have exceptional security along with the benefits of verification.

Why can blockchain technology be important in the legal sector?

Blockchain technology can store many records in a distributed and transparent ledger with a great level of security. In this digital era, security is the thing which the legal industry mostly lacks. Blockchain’s feature of security can be beneficial to this sector. There are some vital applications of blockchain technology which can be topsy-turvy to traditional legal processes:

1. Smart contracts are indeed smart and fast

In the blockchain, digital information can be easily stored securely. That information can be shared among relevant parties. All legal data can get verified to prevent forgery and negate the requirement for formulating contracts in the courtroom. Smart contracts are self-executing contacts and complete when particular criteria are met. The best feature of smart contracts is – distributed and immutable. Once you create smart contracts, they can not be altered again. It reduces the risk of tampering. No one can get behind your back and change the codes of your contracts. If no action is met, no remuneration will be there. With blockchain secure QR code integration, it becomes an easy process to secure and store all your sensitive legal documents.

2. Store all criminal cases in a tamper-proof way

Blockchain technology has huge potential in storing criminal case documents which can not be tampered with. These case files or documents can be highly secure and can be accessed by every necessary party. Do you know huge amounts of money are spent on criminal cases which do not even make it to trials? The cases along with evidence also get misplaced or lost. These documents need so much security and administration time. Blockchain technology can offer a shared ledger to each party. It will reduce the cost and time of resolving cases. Some cases can be resolved quickly.

3. Concept of intellectual rights

Blockchain technology can create a ledger for various owners of intellectual rights of arts, music, inventions etc. All these are forms of smart contracts and can set up terms of remuneration type and various items etc. Even resolving copyright cases can become easy. Use blockchain as an intellectual property registry. Here the owners can easily keep their valuable certificates and even gather royalties through smart contracts.

4. Chain of custody

The forensic chain of evidence is the chain of custody. Usually, they are collected from time to time and exhibited to the court. The evidence is passed in this procedure for analysis and inspection. It can result in legal data tampering of evidence. So it is vital to have security, integrity, and traceability in the system. Blockchain technology can mitigate the risks of tackling evidence.

All in all, you can apply blockchain in the legal sector to witness the massive growth of legal enterprises. There are varied forms of challenges faced by the legal industry especially related to security and tamper-proof systems. Blockchain technology can be a game-changer and break the barriers of issues faced by the industry. With blockchain document security, securing legal documents can become more hassle-free.