Blockchain has got much attention worldwide for its use case in many industries. It is a new technology and will have more use cases in future also. Blockchain implementation can be a crucial way of how the modern legal practice operates. For lawyers, the number of significant traits of Blockchain technology is a lot, but the best of them are storing information in a transparent, secure and immutable ledger. If legal industries want to keep up with this digital technological world, then Blockchain would be the perfect fit for them.
Impact of Blockchain implementation in legal practices
Right now, the number of Blockchain implementation in legal professions are not much, however, there are pieces of evidence of the technology being used in almost every field. However, the technology is a safer tool for law firms to adopt.
1. Increase in Compliant Regulatory Reporting
Legal professional players take charge of the activities such as regulatory compliance, reporting, and management. And they come across many challenges regarding regulatory compliance globalization and management. With it, current firms need efficiency and enhanced speed that could be attained with the adoption of Blockchain.
Due to its immutability, it eliminates the risk of fraudulent transactions. For this reason, it is implemented to ensure compliance is unmodified over time and maintained efficiently. Here, data is stored in a decentralized manner. In legal sectors, the vital thing is the uniformity, trust, and consistency of data most importantly for sensitive areas.
2. Cybersecurity for law firms
Cybercriminals make the legal industry as their continuous and utmost priority for frauds. The data which is open and public on the internet is prone to attacks and is not safe. So, the incidents of data breaching are very common to have happened in future. No matter a local network used by large companies is not connected to the outside world or collaborative teams. The chances of data breaching are very high in this case.
Blockchain can mitigate the data risks because it handles data securely. A company named Bitium has already created an authentication system that depends and relies on Blockchain called Blockchain Single Sign-On, or SSO.
It’s developed to protect a user’s account and connected apps. In fact, all of it is recorded in the cloud storage. Blockchain implementation can be used to access documents, files, and sensitive data.
It also protects from phishing. In this situation, cybercriminals create phony yet legitimate-looking portals to trick unsuspecting employees and individuals. You then got into their trap and visit the fake portal and submit your login details or sensitive information. Now, the hacker can easily abscond with your personal details. Further, he utilizes the collected information to gain access to highly sensitive systems and networks, such as the ones legal professionals use to handle documents and information.
