Financial and technology industries alike are merging in a grand way, giving rise to the birth of blockchain outside of its ordinary working conditions. Blockchain is a spread digital ledger considered to power and back cryptocurrencies—the most popular of which is bitcoin..
While it does have some suggestions for privacy and law, blockchain has just as much to offer the legal industry regarding benefits.
How Does Blockchain Work?
In the world of crypto currencies, a “block” is the name given to a public transaction. Every time the related currency variations hands, whether through mining or a direct pay-out, it’s recorded in the account book and made noticeable to all.
The ledger has a complete history of any and all transactions made; creating what is a chain of information. Therefore, a blockchain is essentially a vast list of transactions, one after the other.
A block or transaction cannot be changed by any parties, including those involved, outside of the initial reporting. It remains transparent, reliable, and accurate for the life of the chain.
Furthermore, the uniqueness of both parties remains unidentified. Even if your closest neighbour earned millions through a latest blockchain transaction, you’d have no awareness if not they told you directly.
The secrecy can seem dangerous at times especially regarding currencies that change hands for many reasons some corrupt. However, it can also protect sources in several fields when the technology is used. Consider a lawyer sharing a sensitive case record on a person with another law official through secure digital means, with no record of who has what.
How Can Blockchain Be Used In the Legal Field?
It’s significant to note that while we will suggest some ideas for the use of the technology here, it’s not a full exploration. The technology is new enough that it’s likely that many openings and used cases will appear soon that were never discussed before. Keep an open mind when learning about this technology
1. More Compliant Regulatory Reporting
Legal experts handle challenges from regulatory compliance, reporting, management, and even globalization. Couple this with the fact that modern business requires improved speed, efficiency, and service and you have a recipe for disaster—one that could easily be remedied through the adoption of blockchain technology as a digital ledger for related documents and files.
Because it’s practically unattainable—it’s stored in a central database and cannot be modified or deleted—blockchain can be used to ensure compliance is achieved, maintained, and, more importantly, unaltered over time. The constancy, reliability, and uniformity of data, particularly for subtle topics, is important in the legal sector. So really, whether or not block chain should be considered is a no-brainer.
2. Enhanced Cyber security and Protections
Blockchain could alter security risks noticeably because of how secure the handled data remains. One company, Bitium, already developed an authentication system that be dependent on on blockchain called Blockchain Single Sign-On, or SSO. It’s intended to guard a user’s account and connected apps, all of which are stored in the cloud. It can be used to access documents, files, and sensitive data.
One type of attack blockchain decreases considerably is phishing, which is where attackers create fake yet legitimate-looking gateways to trick innocent employees and individuals. As a victim, you visit the fake portal and input your login details or sensitive information only to have the hacker head off with your personal details. They then use collected material to gain access to highly sensitive systems and networks, such as the ones legal professionals use to handle documents and information.
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