- Blockchain can be used at various levels in the legal sector.
- Dispute resolution, smart contracts and recording real estate data are some of the use cases of blockchain in the legal industry.
The legal sector is also now interfered with by blockchain systems. It’s not only changing the centralized nature of the legal system but also at other levels as well. The real estate industry and even dispute resolution are now under the control of blockchain. There are several use cases in the legal industry.
Let’s understand how the blockchain industry is revolutionizing the legal sector!
How Will Blockchain Revolutionize The Legal System?
Blockchain is an online ledger system that stores data. Till now, blockchain has been considered the safest method to store data. Let’s understand how.
The blockchain’s functional units are known as nodes. To complete any transaction, all nodes must verify the transaction. Or even if someone tried to manipulate the blockchain data, he or she would have to make changes to every node. This is quite impossible for hackers.
Thus, theoretically, blockchain can’t be hacked or it can be said that data remains safe. Blockchains’s ability to keep data safe and secure is used in the legal industry. There are several use cases for blockchain in legal sectors.
Here are the top 4 use cases of blockchain in the legal sector.
Top 4 Use Cases Of Blockchain In The Legal Sector
- Smart Contract
By definition, smart contracts are self-executing contracts that run when pre-determined conditions are met. These types of contracts eliminate the need for a central authority to make any decision. Hence, no one else can interrupt the transaction, which ensures security.
Blockchain chain contracts can be used in legal statements, financial contracts, real estate transactions, and other similar use cases. In short, smart contracts are a more secure and efficient method to build legal contracts.
- Real Estate And Property Record
The buying and selling of real estate is a complex process that requires a lot of legal documentation. In some cases, it is even hard to find the real owner of the property. As a result, real estate is a complicated industry and there are various other risks involved.
All these issues related to real estate can be solved by an immutable ledger system known as blockchain. Anything that is recorded in the blockchain system serves two purposes: first, it is legal proof of property. And it works as the ultimate authenticating factor.
In other words, blockchain serves as a way to ensure the ownership of real estate.
- Maintaining Public Records
For the government, its task is to manage and store the census data of citizens. Along with censorship, the government has to keep records of business, taxes, and other information to regulate the country. On top of that, governments have to ensure the security of the data.
Till now, the government has managed the data well but the integration of blockchain is an alternate solution. Blockchain ledgers are hard to hack and impossible to access unless authorized. Thus, blockchain can be used to store legal documents and other important data.
- Dispute Resolution
Kleros is a blockchain-based company that helps users solve economic disputes, legal disputes and other disputes. According to the Klero website, they solve disputes that courts or the traditional judiciary system are unable to solve.
Let’s understand how Kleros works! Kleros selects the jurors that solve the case. As of now, similar platforms are in process that help in dispute resolution. Blockchain-based systems reduce the time and resources wasted on the legal judiciary process and also ensure the decisions made are fair.
Conclusion
Blockchain serves as a platform to store data. Its efficient method is to record, save, store and share data. This extraordinary ability of blockchain is employed in various legal systems. Such as in smart contracts and to solve disputes.
