How will the legal industry change with the advent of blockchain?

Blockchain is a publicly accessible ledger that can be used for anything that is typically stored in a database or spreadsheet.

Essentially, blockchain is a platform on which an accounting system can be built. A network called Ethereum, described as “a decentralized virtual platform that executes peer-to-peer contracts,” is gaining increasing popularity thanks to its so-called smart contracts.

Contracts

Blockchain has the potential to transform the world of legal contracts. What makes blockchain so innovative is that it can not only record data in an immutable way, but also perform actual computations on that data.

For example, I could draw up a contract stipulating that once my patent is approved by the Italian Patent and Trademark Office (UIBM), my partners will receive a 10% stake in my company. How does it work? Once the contract is recorded on the blockchain, it will verify whether the patent has been registered, and if so, it will trigger a mechanism that distributes the shares to the partners.

All of this would be automated and would take place without the involvement of a lawyer. In fact, the system would be set up so that, once linked to a payment system, the percentage shares due would be automatically paid to the partners as soon as notification of the patent’s registration is received.

Intellectual Property

If blockchain is ready for anything, it’s intellectual property. This technology creates a public ledger that can accommodate any type of file, offering benefits on a global scale.

This information provides clear guidelines on usage rights for everyone. It would also be possible to apply for a trademark through this system. By using an algorithm that identifies any potential similarities with other trademarks, the system could then approve or reject such an application. All of this would be accessible to everyone.

Real Estate Rights

Wealth stems from property ownership, and one of the most complex aspects of a country’s development is determining who owns each piece of land. Conflicts often arise because corrupt governments or individuals take advantage of those who are most vulnerable.

Having a public ledger would allow anyone to know who owns what; and this would make the exchange of such land much simpler and fairer.

If a family decided to buy a piece of land that could be legally registered on the blockchain, it would be much easier to verify ownership than, for example, through government records.

Some South American countries are beginning to use blockchain technology to track who owns specific parcels of land.

Data collection

Some African countries are beginning to use blockchain technology to collect census data. Voter registration data could be integrated into this system to create a central registry of eligible voters. In these areas, which are largely underdeveloped, blockchain could drive significant growth.

Financial services

The banking industry is also jumping on board with this new platform. The idea is to make our stocks compatible with the blockchain system. Simply put, every stock bought or sold will be recorded on the ledger. Everyone will be able to track their stock portfolio and even link it to their property management documents

Once extracted, these documents can be stored on the blockchain for as long as you wish (potentially even until your death). Finally, these documents can be passed on to your heirs.