It has become evident that there are one or two use cases for blockchain technology in every industry and the legal industry isn’t exempted. That is because electronic agreements and signatures are gaining more ground in the professional world which has necessitated the need for electronic signing platforms. However, the digitalization of these processes has raised concerns about how anyone can easily manipulate or forge these electronic records. Thankfully, blockchain technology and blockchain-based electronic signing platforms like EthSign can put those concerns to rest. Let’s look at how blockchain can solve this issue and why industry leaders should pay more attention to platforms like EthSign.
How Blockchain’s Immutability Solves Some Concerns
Blockchain is an electronic ledger of transactions. This ledger is usually maintained across a network of computers which makes it highly secure and transparent. Furthermore, blockchains are immutable meaning data stored on it cannot be altered. The only way to alter data on a blockchain is to add to it and even then, such activities are recorded and time-stamped. As such, blockchains are tamper-proof and there is a record of every activity that occurs on a blockchain. These features are what make blockchain technology the go-to solution to solving the issue of fraud as far as electronic documents and signatures are concerned.
How Blockchain Brings Trust To The Legal Industry
Electronic records are usually prone to hacks. However, blockchains are the closest thing to being “unhackable.” Agreements and signatures stored on the blockchain ledger are usually encrypted and as such, bad actors can’t easily have access to them. Instead, what they will see is just the digital footprint that such records exist on the blockchain. Furthermore, blockchain records are permanent meaning that the integrity and authenticity of a legal agreement, for example, can be verified years later. In short, blockchain technology restores users’ trust in electronic documents without having to worry about privacy concerns since everyone can only see the digital footprint.
From the foregoing, it is obvious that the use of blockchain technology and smart contracts will become essential in drawing up certain legal documents and processing routine contracts. That will help speed up the processes and provide additional security and trust when dealing with such documents. Blockchain technology will also help create indisputable legal records since they can’t be altered on the blockchain. To make such arrangements feasible, stakeholders in the industry will need to be open to adopting platforms like ETHSign. Let’s take a look at what the platform is all about.
What is ETHSign?
ETHSign is the first web3 e-signing platform. Built on Polygon, the platform utilizes blockchain technology to offer a decentralized, customizable, and transparent version of traditional signature service. ETHSign is committed to tackling fraudulent issues (especially data security) associated with electronic signature service providers. The platform has completed over 160,000 signatures. It is free to use, and users can comment, edit, and access each version of their electronic agreement securely and seamlessly.
Besides offering blockchain-based e-signing services, ETHSign also aims to bridge the gap between Web2 and Web3 by successfully integrating legal agreements into smart contracts. Here, parties can agree to create legally binding contracts that go hand-in-hand with code-based contracts for trustless execution. By doing this, both parties can worry less about the other keeping their end of the deal as the smart contract self-executes once the conditions stipulated for its execution are met.
Blockchain technology, if adopted and incorporated into the legal industry, can help resolve various issues like forgery and manipulation. It also creates added security for sensitive legal documents and agreements, thereby providing peace of mind to all parties involved. In short, Blockchain technology is the tool needed to once again inspire trust in the legal system.
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