Blockchain is a relatively new technology that seems to be directly affecting every industry. Here we will see how blockchain is going to impact the legal industry. The technology was first invented with the creation of the first peer-to-peer cash – Bitcoin. In layman’s terms, blockchain is a type of data structure that is decentralized and distributed across different servers as opposed to the system the internet has in place now which is highly centralized. Many proponents of tech think that it is going to revolutionize the world and together with web3 will change everything as we know it.
How Blockchain is Going to Impact The Legal Profession
Make no doubt about it, blockchain will not replace lawyers but will be used as a tool for a more secure, transparent way of an agreement from one party to another. Whether you are in tech or any other field, it’s always wise to consult with a lawyer and there are plenty of times when they come in handy. We have written an informed article for you on the times you may need a lawyer: https://www.halt.org/situations-where-a-lawyer-can-come-in-handy/.
The main proponent of blockchain technology that is very interesting to the legal field is Smart Contracts. Initially invented by Ethereum in 2014, a Smart Contract is an agreement between two parties that is written into computer code. For example, if Bob decided to sell his car to Alice, they would agree on set parameters: price, payment plan, etc. When everything has been agreed and the terms are met by both parties, the contract is automatically executed transferring the funds to Bob’s account whilst making Alice the owner of the car. It essentially puts the element of trust in computers whereas now trust is normally given to third parties like Escrow. The difference here with a Smart Contract is that the fees are way lower as it is a peer-to-peer agreement on the network, in this example Ethereum.
There are now many types of Smart Contract platforms all of which can be explained in depth at https://academy.shrimpy.io/post/the-best-smart-contract-platforms but Ethereum still remains the standard. Other prominent protocols include; Solana, Polkadot, and Binance Smart Chain (BSC). All these platforms have their pros and cons but with the advent of the Non Fungible Token market and specifically the Decentralized Finance (DeFi) market, the use cases of Smart Contracts is steadily increasing.
With DeFi, the legal profession is very important in confirming ownership of a particular asset. Many legal firms are actively looking into Smart Contract technology to streamline their workload. Today Ethereum still remains the number one choice for DeFi dApps because of its age and trustworthiness. Its proof of stake system, as well as sharding and a huge team of talented developers, make it the Smart Contract King.
The legal industry is known for having to deal with the paperwork and the solutions that blockchain and web3 offer are already being adopted by many legal firms. In a survey conducted by PwC, 70% of legal firms would utilize Smart Contracts for more secure, transparent agreements. The changes that are currently underway have not been seen since the invention of the internet. A new normal will take place, just like when all industries went online. From social media destroying the publishing industry to online retailers putting land-based stores out of business, blockchain may have the same repercussions going forward.
The internet made everything cheaper and way more convenient. Take the online casino industry, players can play all their favorite games like baccarat and slots from home as opposed to going out. There are comparison sites like https://www.casinos.co.za/ that help players with finding the best online casinos. They provide detailed casino reviews, information on claiming different bonuses, as well as slots and game guides, they even allow you to play the games for free. Furthermore, if you’re familiar with blockchain technology and have some BTC in your wallet, you can use Bitcoin to make deposits at online casinos while retaining your anonymity and saving money on transaction fees. This change is not exclusive to the gambling industry but to all industries. You do not need to visit a lawyer in person, you can just have a Zoom call to discuss your issues, same with a doctor’s appointment.
The internet brought about this change by connecting people but through a centralized third party, blockchain, and web3 on the other hand is a decentralized system that directly connects peers. This change going forward will massively alter agreements as confidence will be put into the quality of the code as opposed to a traditional contract.