CRYPTOCURRENCY UPDATES: A PRIMER ON BLOCKCHAIN TECHNOLOGY AND ITS IMPLICATIONS FOR THE LEGAL SECTOR | VERY USEFUL 5 MIN READ

A PRIMER ON BLOCKCHAIN TECHNOLOGY
Spread the love

CRYPTOCURRENCY UPDATES: A PRIMER ON BLOCKCHAIN TECHNOLOGY AND ITS IMPLICATIONS FOR THE LEGAL SECTOR:

WE WILL DISCUSS IN DETAIL ABOUT A PRIMER ON BLOCKCHAIN TECHNOLOGY AND ITS IMPLICATIONS FOR THE LEGAL SECTOR.

OVERVIEW OF A PRIMER ON BLOCKCHAIN TECHNOLOGY AND ITS IMPLICATIONS FOR THE LEGAL SECTOR:

THE TERM “BLOCKCHAIN” HAS BECOME SOMEWHAT OF A BUZZWORD AND IS FREQUENTLY USED. YOU’LL UNDOUBTEDLY COME ACROSS TERMS LIKE “CRYPTOCURRENCY” OR “NFTS” THROUGHOUT THE INTERNET. BUT WHAT DO THESE EXPRESSIONS ACTUALLY MEAN, AND HOW WILL THEY IMPACT THE LEGAL SECTOR IN THE LONG RUN? LET’S START AT THE BEGINNING AND DEFINE BLOCKCHAIN AND ALL RELATED TERMS.

A PRIMER ON BLOCKCHAIN TECHNOLOGY

BLOCKCHAIN:

A SYSTEM KNOWN AS A “BLOCKCHAIN” IS ABLE TO SECURELY STORE AND RECORD DATA ABOUT TRANSACTIONS IN A DATABASE THAT CAN THEN BE DUPLICATED AND WIDELY USED. ANOTHER NAME FOR IT IS “DISTRIBUTED LEDGER TECHNOLOGY.” DEPENDING ON THE NEEDS AND REQUIREMENTS OF THE LEDGER AND THE USERS, SUCH TECHNOLOGY CAN BE MADE EITHER PUBLIC OR PRIVATE. ADDITIONALLY, IT KEEPS TRACK OF EVERY TRANSACTION THAT MIGHT TAKE PLACE ON A PEER-TO-PEER NETWORK AND SERVES AS THE FOUNDATIONAL TECHNOLOGY FOR SYSTEMS LIKE CRYPTOCURRENCY. 

TRANSACTIONS ARE CONFIRMED AND RECORDED USING THE BLOCKCHAIN NETWORK WITHOUT THE NEED FOR A DOMINANT CENTRAL CLEARING AUTHORITY. A WIDE RANGE OF INDUSTRIES CAN BENEFIT FROM AND USE THIS INNOVATION BECAUSE OF THE SAFE, DIGITAL STORAGE OF INFORMATION. BLOCKCHAIN IS USED IN A VARIETY OF WAYS, INCLUDING (AMONG OTHER THINGS) FACILITATING INTERNATIONAL MONEY TRANSFERS, SETTLING TRADES, SUPPLY CHAIN LOGISTICS, VOTING, AND MORE.  

BLOCKCHAIN IS BEING INCREASINGLY ADOPTED GLOBALLY ACROSS A VARIETY OF INDUSTRIES, AND SOCIETIES ALL OVER THE WORLD ARE ACTIVELY WORKING TO IMPROVE THEIR KNOWLEDGE AND UNDERSTANDING OF THIS POTENT, CUTTING-EDGE TECHNOLOGY. BLOCKCHAIN WILL GENUINELY CHANGE THE WORLD, AND POWERFUL ORGANIZATIONS LIKE BANKS AND GOVERNMENTS ARE ALREADY AWARE OF THIS. THE IMPLEMENTATION OF BLOCKCHAIN TECHNOLOGY AND ITS ENSUING EFFECTS ARE GRADUALLY GIVING RISE TO REGULATIONS IN A NUMBER OF JURISDICTIONS, INCLUDING AUSTRALIA. WE SHOULD ALL VIEW REASONABLE REGULATION AS A STEP IN THE RIGHT DIRECTION TOWARD THE EVENTUAL EXPANSION AND ADOPTION OF BLOCKCHAIN IN OUR SOCIETY.

CRYPTOCURRENCY:

ONE MORE SIGNIFICANT FORCE THAT IS UPENDING THE WORLD OF DIGITAL PAYMENTS IS CRYPTOCURRENCY, OR “CRYPTO.” CRYPTOCURRENCY, A TYPE OF DIGITAL OR VIRTUAL CURRENCY, IS ESSENTIALLY SECURED BY CRYPTOGRAPHY. AS A RESULT OF ITS DECENTRALIZED BLOCKCHAIN NETWORK FOUNDATION, THIS MAKES IT NEARLY IMPOSSIBLE TO COPY OR COUNTERFEIT. IT IS A DIGITAL ASSET WITH A DECENTRALIZED STRUCTURE THAT ALLOWS IT TO EXIST INDEPENDENTLY OF CENTRAL AUTHORITIES OR ENTITIES SUCH AS GOVERNMENTS, WHICH FREQUENTLY SEEK TO CONTROL AND REGULATE CURRENCY. 

THE REPUTATION OF CRYPTOCURRENCIES AS DISRUPTORS STEMS FROM THE FACT THAT BITCOIN (BTC) WAS THE FIRST OF ITS KIND FOR A VERY LONG TIME. THE USE OF CRYPTOCURRENCIES HAS BOTH ADVANTAGES AND DISADVANTAGES, SOME OF WHICH ARE AS FOLLOWS:

  • BENEFITS INCLUDE CHEAPER AND QUICKER MONEY TRANSFERS BECAUSE DECENTRALIZED SYSTEMS DO NOT COLLAPSE AT A SINGLE POINT OF FAILURE, IN CONTRAST TO CENTRALIZED SYSTEMS THAT DEPEND ON POTENTIALLY FLAWED HUMAN-DESIGNED SYSTEMS. ADDITIONALLY, THEY PROVIDE FREEDOM FROM CONVENTIONAL FINANCIAL INFRASTRUCTURES AND TRANSPARENCY;
  • NEGATIVES INCLUDE PRICE VOLATILITY, MINING’S HIGH ENERGY REQUIREMENT, AND THE POSSIBILITY OF CRIMINAL EXPLOITATION AND LEVERAGING. ADDITIONALLY, THERE IS A DEARTH OF APPROPRIATE LEGAL REGULATION IN MANY JURISDICTIONS AROUND THE WORLD.

NFTS:

NFTS, OR NON-FUNGIBLE TOKENS, ARE CHUNKS OF DIGITAL INFORMATION KEPT ON THE BLOCKCHAIN. NFTS, ON THE OTHER HAND, ARE NOT AT ALL LIKE CRYPTOCURRENCIES, WHICH ARE FUNGIBLE AND TRANSPOSABLE. DUE TO THEIR NON-INTERCHANGEABILITY, NFTS ARE DISTINCTIVE IN THIS REGARD. 

SINCE THE BLOCKCHAIN TRACKS AND RECORDS EVERY TRANSACTION, NFTS ESSENTIALLY “LIVE” THERE, GIVING VERIFIABLE OWNERSHIP PROOF. LARGE, RECEPTIVE COMMUNITIES HAVE FUELED THE POPULARITY OF NFTS. THE NFT COMMUNITY HAS DONE QUITE WELL IN CREATING THE HYPE, LEADING TO SOME PRETTY OUTRAGEOUS SALE PRICES, LIKE WHEN BEEPLE SOLD “HUMAN ONE” FOR $28.9 MILLION. CONNECTION IS ESSENTIAL TO SUCCESS IN THIS NICHE. 

ANY CLAIMS THAT THE GROWTH OF THIS INDUSTRY IS MERELY A PLOY OR THAT IT WILL EVENTUALLY DIE A SLOW DEATH ARE REFUTED BY NFT SUPPORTERS. ON THE OTHER HAND, CORPORATES ARE FINDING IT DIFFICULT TO GRASP HOW NFTS RELATE TO THE REAL WORLD AND WHAT IMPACT THEY MAY HAVE. NFTS ARE UNDOUBTEDLY HERE TO STAY, AND AS THE INDUSTRY GROWS, INTERNATIONAL INSTITUTIONS WILL BE FORCED TO CATCH UP.

WHAT IS THE IMPACT ON THE LEGAL SECTOR?

THE LEGAL SECTOR IS JUST ONE OF THE MANY INDUSTRIES THAT BLOCKCHAIN TECHNOLOGY HAS THE POTENTIAL TO DISRUPT. THIS TECHNOLOGY IS ALREADY ANTICIPATED TO BECOME JUST AS REVOLUTIONARY AS THE INTERNET. THE LEGAL PROFESSION HAS LONG RESISTED CHANGE, EMBRACING OUTDATED PROCEDURES AND QUICKLY DISMISSING ANY INDICATION OF CHANGE.

THE NEED FOR LAWYERS TO UNDERSTAND HOW BLOCKCHAIN FUNCTIONS AND POTENTIAL LEGAL ISSUES GROWS AS MORE COMPANIES INTEGRATE IT INTO THEIR SYSTEMS. LAW FIRMS’ TYPICAL CLIENT SERVICES AS WELL AS THEIR OVERALL BUSINESS PRACTICES ARE BOTH EXPECTED TO CHANGE AS A RESULT OF BLOCKCHAIN TECHNOLOGY. 

UTILIZING BLOCKCHAIN HAS MANY ADVANTAGES, INCLUDING AUTOMATING CONTRACT MANAGEMENT, SMART CONTRACTS, IMMUTABLE STORAGE OF LEGAL AGREEMENTS, AND A REDUCTION IN PREPARATION TIME. FOR ALL PARTIES INVOLVED IN A TRANSACTION, THE TRANSPARENT NATURE OF BLOCKCHAIN ALSO CREATES A SMOOTH, PREDICTABLE ENVIRONMENT, ENABLING EVERYONE TO BETTER UNDERSTAND THE AGREEMENT THEY’RE ENTERING INTO. 

CHANGEMAKERS IN THE LEGAL SECTOR CURRENTLY USE BLOCKCHAIN IN A VARIETY OF WAYS, INCLUDING THE FOLLOWING:

  • DIGITAL SIGNATURES
  • IDENTIFICATION AND PRESERVATION OF INTELLECTUAL PROPERTY
  • RIGHTS TO PROPERTY
  • THE CHAIN OF CUSTODY
  • TOKENISATION

THE USE OF BLOCKCHAIN TECHNOLOGY IS GENERATING MEDIA ATTENTION, AND THOSE WHO DO SO QUICKLY RISE TO THE TOP OF THEIR FIELDS. WITH BLOCKCHAIN, THERE IS NO END TO THE DEVELOPMENTS, AND THE WORLD MARKET MOVES QUICKLY.

CONCLUSION OF A PRIMER ON BLOCKCHAIN TECHNOLOGY AND ITS IMPLICATIONS FOR THE LEGAL SECTOR:

TO CONCLUDE ON A PRIMER ON BLOCKCHAIN TECHNOLOGY, THE COMPLETE BEGINNER’S GUIDE ON BLOCKCHAIN IS PROVIDED IN THIS POST.

FOLLOW US ON:

HARI INFO SECTION H.D.C.

FACEBOOK YOUTUBE

HARI DENTAL CARE

HARI WEB STORIES H-SHOPEE

HARI ENTERPRISES

CRYPTOCURRENCY UPDATES: A PRIMER ON BLOCKCHAIN TECHNOLOGY AND ITS IMPLICATIONS FOR THE LEGAL SECTOR | VERY USEFUL 5 MIN READ

Leave a Reply

Your email address will not be published.

Scroll to top