Blockchain Technology: Implications for the Legal Industry
What is blockchain? Often referred to as a “disruptive technology,” blockchain has emerged from relative obscurity to become one of the most popular conversation topics in varied industry circles. In the simplest terms, a blockchain is a shared ledger that tracks the movement of assets in a secure, peer-to-peer (P2P) network, which is when two or more computers are connected without being routed through a separate server. Think of it as a way to trade goods or services — really, anything with value — without the need for a middleman, therefore reducing the number of steps in any given transaction. And it all happens in real time. But perhaps one of the most important details to know is that because blockchains aren’t stored in any single location (decentralization is key here), it becomes virtually impossible to corrupt.
Blockchain may be best understood when it is explained within the context of bitcoin, the digital currency that was launched less than a decade ago. Unlike the currencies in which we are accustomed to dealing, bitcoin is not issued by a centralized authority. Indeed, perhaps bitcoin’s most important element is that it lacks a controlling institution; rather, a group of coders maintain its algorithm on an open network of computers spread around the world, using free and open software that anyone can access.2 This decentralization is perhaps the defining characteristic of blockchain.
How will you incorporate blockchain into your practice? Learn more!
Given blockchain’s ability to introduce unquestionable efficiencies in industries that have historically relied on third-party-mediated systems to undertake complex transactions, what does this all mean for the legal industry, which itself acts as the most trusted intermediary there is and has traditionally been known as a late adopter of new technology? Picture for a second a law firm and its voluminous paperwork. Contracts and myriad other documents still need to be signed with original ink by multiple parties—many of whom may not even be in the same time zone, let alone location. “Over time, blockchain will simplify and streamline paperwork,” says blockchain expert John Hargrave, CEO of Media Shower, a Boston based media company focused on the technology industry. As Hargrave points out, this, of course, offers benefits to both clients and the law firms themselves, as streamlined operations save both time and money—on both sides of the equation. Hargrave also notes that law firms that get in on ground floor and position themselves as experts can help shape the actual area of the law involving blockchain, as well as utilize the technology for themselves, a double-edged benefit.
Security matters: Sign up for a Free Demo of Abacus Private Cloud Today!
For more information about AbacusLaw products and services, please call 888-295-3336 or visit https://www.abacusnext.com.
This content is advertising.
