Yes, you read it correctly! Apart from the widely-known applications in financial and payments industry, Bitcoin technology has the potential to transform the ‘Practice of Law.’ Practice of Law generally refers to lawyers giving legal advice to clients, drafting legal documents for clients, and representing clients in legal negotiations and court proceedings such as lawsuits.
Notably, it also implies that those law firms and lawyers who are appreciative of the true potential of the Bitcoin technology will definitely gain a decisive advantage over their disinterested peers.
Bitcoin and Law Applications: Easier Said than Done!
Among the poorer nations of the Americas is Honduras, which recently announced that it will use Bitcoin technology for land titles in Honduras.
But applying the blockchain technology to other streams is easier said than done. Take this case for instance.
Person A is to sell a commodity to Person B. If B feels that he has been given an inferior product, he cannot take the usual legal route for redressal. Why? Because of the pseudo-anonymous nature of the transaction. The situation is further worsened if A decides to make his IP address virtually untraceable using the TOR network.
So, who does the court charge or fine? This has been boggling the minds of the law enforcement officials for some time now.
Listen Up, Lawyers!
These issues can be resolved, to an extent, if a lawyer familiar with the blockchain technology would incorporate arbitration mechanisms, as a code, into the smart contracts at their drafting stage.
Leading financial firms such as Goldman Sachs and Nasdaq have committed millions of dollars in Bitcoin technology, firming their stance that they are more interested in the underpinning technology and not the currency.
This also has significant implications for lawyers and their law firms. But only for those who want to hear about it, adapt according to it, and innovate with it.