<span style="font-weight: 400">In this article, we examine how Blockchain is changing the legal profession. It is an excellent opportunity for lawyers to reinvent themselves as trusted strategic advisors. Blockchain has tremendous potential, and lawyers can position themselves as invaluable members of their client's core team by learning to use this technology to help their clients. With so many applications, such as legal records, blockchain offers a great opportunity for lawyers. Blockchain can reduce human error and provide a secure storage system for documents. It can also improve the credibility of certain areas of law, such as forensics and fraud investigations.</span>

<img class="aligncenter" src="https://imageio.forbes.com/specials-images/imageserve/5e214479735f8c00079a0916/The-Future-of-Lawyers--Legal-Tech--AI--Big-Data-And-Online-Courts/960x0.jpg?fit=bounds&amp;format=jpg&amp;width=960" alt="The Future of Law and Legal Profession" width="558" height="372" />
<h2><strong>Law Firms Must Adapt To Blockchain Technology</strong></h2>
<span style="font-weight: 400">Blockchain technology is transforming how businesses and law firms do business. It provides a secure, transparent, and immutable database for legal transactions. This technology is also based on </span><a href="https://en.wikipedia.org/wiki/Public-key_cryptography"><span style="font-weight: 400">asymmetric cryptography</span></a><span style="font-weight: 400">, making transactions between users secure. Each user has a unique, cryptographically-related private and public key. It is mathematically impossible to guess another user's private key. This makes blockchain a great technology for law firms, as it enables simple contracts to be coded and executed when conditions are met.</span>

<span style="font-weight: 400">Until blockchain technology becomes widely adopted, some law firms will continue to resist using this technology. They will probably be fearful of obsolescence and hope that some people will continue doing business the old-fashioned way. But ignoring the implications of new technologies is a recipe for losing millions, if not billions of dollars. So how can law firms adapt? The answer lies in the use of education and training.</span>
<h2><strong>Blockchain Can Automate Back-Office Operations</strong></h2>
<span style="font-weight: 400">With its decentralized network and automated processes, blockchain can automate many aspects of the legal profession. This includes timekeeping, the production of complex documents, document verification, and merger and acquisition transactions. As a result, the legal profession will likely need to adapt to the blockchain as it streamlines back-office operations and enables new revenue streams. For example, smart contracts can streamline legal document drafting and speed settlement between parties. In addition, with the use of blockchain, lawyers will experience a reduction in billable hours as they become more efficient and rely less on the mass production of standard contracts.</span>

<span style="font-weight: 400">The technology can also be used to syndicate, trade, and pay off leveraged loans. While it has not yet been applied in real transactions, proof-of-concept projects have demonstrated how blockchain could reduce the cost of back-office processes and eliminate back-office staff. One such proof-of-concept project, </span><a href="https://www.cryptoknowmics.com/news/opensea-acquires-defi-wallet-maker-dharma-labs"><span style="font-weight: 400">Dharma Labs</span></a><span style="font-weight: 400">, aimed to bring credit scoring to the blockchain. The project plans to build a protocol for managing identity, risk, and credit scores.</span>
<h2><strong>Blockchain Can Make Legal Documents More Accessible And Transparent</strong></h2>
<span style="font-weight: 400">The legal industry generates tons of paperwork. Maintaining historical records and the authenticity of filed legal papers has become a daunting task. This is why many legal firms have embraced digital methods of storing data, mostly in the form of simple paper scans. However, this new technology may minimize the chances of disputes by making legal documents more transparent and accessible. In this case, blockchain is an ideal choice for storing legal documents. Moreover, blockchain-based documents cannot be altered by anyone except the legal firm.</span>

<span style="font-weight: 400">Legal documents are typically very time-consuming and involve a lot of paperwork. With blockchain technology, this could change drastically. For example, legal practitioners could register on the blockchain and post their services to clients. Plaintiffs could then hire lawyers to file lawsuits on the platform, and defendants could respond to the allegations on the same platform. In addition, blockchain technology would ensure that each side of a lawsuit has equal access to all relevant information. This would make the process of litigation much more efficient and transparent for all parties.</span>
<h2><strong>Providing Access To Justice</strong></h2>
<span style="font-weight: 400">The cost of legal services is prohibitively high for many individuals and small businesses who may need help navigating a difficult situation. Governments worldwide have worked to set up public legal aid programs, but they tend to be underfunded. Pew Charitable Trusts </span><a href="https://www.pewtrusts.org/en/projects/civil-legal-system-modernization"><span style="font-weight: 400">found that about 30 million Americans</span></a><span style="font-weight: 400"> had trouble accessing or affording basic legal professional services. One research paper on blockchain’s application in Estonia described it as legislation by algorithm because laws are coded into </span><a href="https://www.cryptoknowmics.com/news/ledger-app-adds-support-for-cardano-smart-contracts"><span style="font-weight: 400">smart contracts</span></a><span style="font-weight: 400"> on a blockchain that execute when certain conditions are met. </span>

<span style="font-weight: 400">Examples like these show how blockchain could provide access to justice for people in developing countries where existing government systems aren’t strong enough or affordable enough. For example, one startup called </span><a href="https://devery.io/"><span style="font-weight: 400">Devery</span></a><span style="font-weight: 400"> is using blockchain technology to reduce corruption in business supply chains. A company can use Devery's platform to create a product verification system with data stored on its private blockchain. Then, when another company scans that QR code or uses Devery's API, they can verify whether a product has been produced ethically and transparently. This transparency creates accountability within supply chains. As a result, it makes them more attractive for companies looking to avoid business partners with questionable ethics or practices.</span>
<h2><strong>Bridging Communication Gaps</strong></h2>
<span style="font-weight: 400">For decades, lawyers have had the obligation of keeping track of clients, paperwork, payments, correspondence, etc. A single client might hire multiple lawyers (at multiple firms) to work on a single case. In such cases, conversations between lawyer-to-lawyer become essential because each set of partners can’t see what their counterparts at other firms are doing on their case. Because lawyers aren’t in constant communication, they often send emails or leave voicemails without knowing if they were able to reach anyone. And because it takes time to see whether or not an email was read or a voicemail was listened to, it’s very easy for important information to get lost in translation. </span>

<span style="font-weight: 400">This causes many problems when lawyers miss deadlines or don’t know that key evidence has surfaced. The blockchain provides a solution: by creating immutable records, blockchains ensure that no one party can make changes to documents once another party has verified them. This means that all parties will always work on the same version of files. This will eliminate confusion about who sent what, where, and when. In addition, lawyers using blockchain will know exactly when someone reads an email or listens to a voicemail. This means better communication overall.</span>
<h2><strong>Blockchain Threatens To Render The Traditional Role Of Lawyers Obsolete</strong></h2>
<span style="font-weight: 400">A recent study concluded that over half of the victims and witnesses of crimes would not engage in the justice system again if their records were inaccurate or outdated. In addition, the resulting inaccuracies often result in prison sentences longer than they should be. The blockchain system could make such records more accessible to the public by allowing different parties permission levels. Users could also keep an audit trail of every change made to a document. This will give interested parties instant updates of any changes to those records.</span>

<span style="font-weight: 400">For example, the deed transfer and title search process, which require attorneys, could be automated using blockchain. The immutable record produced by blockchain would make liens evident. Payment and ownership transfer could happen simultaneously, and there can be an automatic title transfer from the seller to the buyer. Ultimately, the technology would make the traditional role of a lawyer obsolete. However, there are still many challenges ahead.</span>
<h2><strong>Last Thoughts on Legal Profession</strong></h2>
<span style="font-weight: 400">The legal industry has faced many challenges in the past few years. This ranges from the threat of technology to changing consumer behavior. For example, nearly 70% of attorneys think that technology will change the nature of their jobs in the next five years, according to law firm </span><a href="https://www.bakerlaw.com/"><span style="font-weight: 400">BakerHostetler</span></a><span style="font-weight: 400">. As a result, traditional firms fail to attract talent. As a result, this will force clients to use untrustworthy third-party solutions or suffer without solutions altogether. Fortunately, there’s an emerging technology that can solve this problem – blockchain technology!</span>

The Future of Law and the Legal Profession: Blockchain Technology

The legal profession industry has faced many challenges in the past few years, from the threat of technology to changing consumer behavior.

Oluwademilade Afolabi is a freelance writer and editor passionate about blockchain technology and the health industry. He is a 6th year medical student, and has worked with various companies and blogs since the blockchain revolution began.

The Future of Law and the Legal Profession: Blockchain Technology

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