Law, order, and justice are necessary components of establishing trust in the global era. Since the internationalization of legal services, the need for services such as the preparation of legal papers, sanctioned applications, intellectual property management, and corporate structure has expanded dramatically.
As a result, overall legal-services spending is predicted to increase over the next several years, reaching approximately $B 1.011 in 2021. In this environment, established enterprises are under intense customer pressure to produce more at a lower cost and with a greater level of quality. This is consistent with the introduction of legal market changes, particularly those motivated by new technology prospects.
These changes in the legal market have facilitated the development and adoption of legal technologies that enable legal service providers to increase productivity, offer innovative digital products (e.g., cybercrime consultation, contract management, and due diligence), and improve the delivery and quality of legal services while maintaining a low-cost structure.
A blockchain is essentially a database of digital documents that are encrypted using a cryptographic hash. In a nutshell, blockchain technology is a way of securely storing data in blocks that eventually form a chain. A hash is computed for each piece of data contained in the block. Hash is a mathematical operation that reduces a big quantity of data to a defined length.
Simply said, “hash” is similar to a fingerprint, and just as fingerprints differ across individuals, so does the hash (depending upon the data input). Once a certain quantity of data has been added to the chain and a hash has been formed, that information becomes permanent and irrevocable. This feature adds an additional layer of protection to the data and makes it less susceptible to hacking. As a result, if any information recorded in the blocks is altered, the hash value of all subsequent blocks in the chain is altered as well.
That is not to say, however, that the information/data included in blocks cannot be changed. The consensus mechanism enables individuals to alter or amend the data contained on the blockchain. Although to update, add, or modify anything on the blockchain, the consensus of at least 51% of the blockchain’s members is necessary, thus the phrase “consensus algorithm.”
Blockchain technology’s potential application in the legal sector:
Law firms create contracts with a repeated function and a similar template on a frequent basis. By utilizing blockchain technology effectively, one may easily automate the terms and circumstances of contracts such as lease agreements, standard memorandums of understanding, and rental agreements.
It will ease the process of entering into contracts involving several parties and will also assist minimize the number of outstanding court cases involving the proof of documents. Once papers are stored in an online ledger, they are unlikely to be altered.
Due to the fact that blockchains can hold an enormous amount of data, they may be utilized to build many nodes. Nodes are essential members of a blockchain network that are connected via various computer/electronic technologies. Following that, nodes may be utilized to execute specified functions via self-executing smart contracts. Each node may be customized using smart contracts to perform a specific function.
For instance, a node for filing, a node for defect marking, and so on. Certain activities, which typically take roughly a month to complete, may now be completed in a matter of days using the blockchain, significantly decreasing both court and administrative time.
Public Ledger of information:
Numerous countries are considering implementing this technology to keep information on their inhabitants and the census. Governments can successfully combat fraud by offering a decentralized platform for securely storing data on birth, death, and criminal record. Even our judiciary can benefit from utilizing this platform to preserve court judgments, so increasing the transparency and accessibility of our legal system for litigants.
Changing the nature of asset ownership and managing titles:
The government spends significant resources each year monitoring and registering land titles. By offering a secure platform for storing land titles and enabling property transfer via digital means, residents may more easily transfer and acquire their land rights.
Intellectual Property Rights:
Blockchain technology enables the storage of trademark and copyright filings on a centralized platform. With unalterable inputs and precise timestamps, the frequency of intellectual property issues is likely to diminish.
Blockchain is a decentralized network that spans boundaries and serves as a universal repository for data across all governments. This one-of-a-kind feature enables easy international contracting between parties.
A judge can use Blockchain to analyze and evaluate electronic evidence during a trial. Cryptographically secured electronic evidence will be easier to authenticate, simplifying the judicial framework. With blockchains, courts will be able to discern between fake and real evidence more easily.
The longest chain will contain all papers accepted by the parties, i.e., the bench, registry, litigants, and agencies, due to the fact that participants (through nodes) will be equally liable for generating majority votes. However, accepting blockchain evidence in court proceedings requires either legislative legislation or a judicial pronouncement approving its use.
It was recently concluded that blockchain evidence can be used as digital proof in newly established Internet courts. Recently, the French have begun accepting blockchain evidence as an electronic type of proof.
In conclusion, blockchain documents that are impenetrable, safe, secure, and time-stamped might be beneficial in court procedures. The technology is still in its infancy, and the government will need to examine a variety of legal and practical impediments, such as coding errors and a lack of expertise in encryption.
The legislature should develop a functional application of blockchain technology, as well as other implementation conditions, to enable the blockchain ecosystem to self-sustain.
While the work at hand is enormous, concerted efforts to enhance technical capability can help alleviate early concerns and modernize the legal industry. A thorough and precise regulatory framework for using this technology would eventually increase efficiency by decreasing mistakes and broadening access to legal services in this era of digital technology.
Published By: Aman Gupta
Edited By: Khushi Thakur