In the legal sphere, many articles have addressed the ways blockchain systems can be used for “smart contracts,” financial transactions like with Bitcoin or Facebook’s Libra, or other more complex scenarios.
However, a frequently overlooked use case for blockchain in the legal industry is actually much more commonplace—the ability to use blockchain technology as a means to allow permanent verification of legally significant documents and data.
Using blockchain technology, lawyers can prevent fraud, alteration, or forgery of documents, contracts and other legal instruments, copyrighted materials, photographic or video evidence, and much more.
Traditional document verification methods relied almost exclusively on the slow, costly, and insecure use of third party verifiers. The advent of blockchain technology is primed to make these outmoded verification methods a thing of the past.
Blockchain: A Growing List of Records
Currently, electronic copies of documents and other information are generally stored using centralized databases maintained on servers in a single and fixed physical locations. A distributed ledger, on the other hand, is a database that exists across various nodes (computers) on a peer-to-peer network.
A blockchain is a type of distributed ledger that packs and organizes transactional information, known as datasets, into cryptographic hash-linked blocks within a sequential chain, thus giving the system that name “blockchain.”
Put more simply, a blockchain is a growing list of records that only allows data to get added onto the database. This means the records of information are impossible to alter or delete on a blockchain.
In short, the intended purpose of blockchain is to bring transparency, efficiency, and security to the storage and maintenance of digital transactions.
Security and Confidentiality
A recent American Bar Association article asserts that blockchain technology is significantly more secure than other data storage methods,…