Technology is introducing changes in all conceivable spheres. Thus, a procedure can be optimized and the costs previously invested can be considerably reduced, or even a professional practice can undergo modifications and evolve in light of these actions. This seems to be the way forward for the law in the face of the emergence Blockchain, a technology that underpins the cryptocurrency system and is a distributive database made up of blockchains.
In itself, this technology offers a database of transactions distributed in thousands of computers and duplicated in each one of them, so it allows to know with accuracy and without the need of verifications (by a governing body) all the data related to a given procedure, leaving an indelible trace in each step taken.
The usefulness of the blockchain as an open, public and virtual ledger has begun to be capitalized by various business models, attracted above all by the transparency and ease of tracking processes. Undoubtedly its entry is generating changes and breaking schemes in all sectors, where of course the legal sector is included.
Technology support
It is a fact that many of the legal transactions in the hands of lawyers are related to the safe handling and transfer of assets. These actions may be linked to the closing of mortgages or to commercial sales in which the administration and management of securities is required, situations in which Blockchain technology can provide necessary support. Since its emergence, lawyers in the world of finance have turned their attention to it, interested in learning how to efficiently apply this tool to legal practice.
However, prudence is always a good ally in times of turmoil. Despite the benefits and services offered by this platform, some lawyers and specialists recommend to walk with caution and observe the scope of the Blockchain. In that sense, although the technology that supports digital currency is seen as a strong option for the emergence of smart contracts, it should not be taken for granted that legal professionals will no longer be needed in these areas, since the rules on which the blockchain system will be installed will absolutely require expertise in the formulation of contracts. Technology is always a means to facilitate the fulfillment of processes and that is inserted in the reality that has been traced by human action.
For this reason, smart contracts cannot be seen as the trigger for the disappearance of legal professionals in charge of contractual relations. It is a natural evolutionary process that will occupy lawyers in other tasks related to the same area where more knowledge will probably be required. In turn, lawyers will have the task of drafting these smart contracts so that they are in accordance with the applicable legislation, even if they will then be codified and taken to a digital platform.
Advantages to take advantage of the Blockchain in the legal world
- The incorruptible traceability of transactions and the optimization of resources brought by its applications, as in the case of smart contracts.
- The indelible footprint left by Blockchain transactions.
- The possibility of automating the management of industrial or intellectual property rights.
- Use as a secure and efficient database for law firms.
- Multiple backups for online legal documents, which are unalterable.
