Simon Zenios & Co LLC is a leading Corporate Law Firm in Cyprus, specialising in the Blockchain and Cryptocurrency Industry. The Law Firm has provided services to more than 200 ICO’s, IEO’s and STO’s. Additionally, its managing director is an IEO, ICO & STO expert on ICObench.com. It is worth mentioning that there is only a handful of Lawyers Globally with such orientations.
The Law Firm is also contributing to the Government’s challenge when it comes to Drafting the New Blockchain Regulation. The next scheduled event is dated on Wednesday, the 7th of August at the Ministry of Finance.
The below article, is written by the Law Firm
101 on Blockchains and the Law
You guessed it right! As the name suggests, a blockchain is a chain of blocks. Those blocks include information on digital transactions, on the parties involved in the transactions and distinctive information to tell one from another.
Blockchains enable transactions which are verified and stored in different blocks. After being verified, the transaction is given a unique name to be distinguished from other blocks, a hash. This is one of the reasons why blockchains are secured.
However, another reason why blockchain is safe is that nothing is private. And that, in the positive sense. Every transaction is shared to all computers to the blockchain network. What does this process achieve? It makes it very hard, if not impossible for someone to hack the system, manipulate and alter the transactions. Every single transaction has thousands of copies; thus, every single one is safe of hackery and deceit.
Take bitcoin, for example. Unlike printed money, bitcoin is a digital currency and the transactions made by it are approved by an online network rather than by physical parties. When the digital transaction is completed then its distribution to everyone involved in the world of blockchain sets it unaltered. Like any other transaction which involves money-whether printed or digital-this as well contains a reward for the work done. In this case, we name it cryptocurrency.
So, when does the law enter the room? It’s already in. Blockchains can and are already improving different areas in the legal industry. One of the most significant real estate problems in India, for instance is property fraud. Hundreds of cases have been reported, which account for frauds of billions of dollars.
What blockchain prevents, is the replication of the product, thus the actual deception. Also, it works based on cryptography, and that means that special individual codes are given for each block. A slight alteration to one of those special codes-hashes notifies everyone involved; hence treacheries are not even attempted.
Indeed, law firms are a very tempting space for a hacker to attack since they include very sensitive data. Hackers know that, but also law firms know that. Based on that, companies proceed to a blockchain consortium, the act of putting their data in a private blockchain. The data then becomes decentralized, making it impossible for hackers to attack.
The Global Legal Blockchain Consortium attempts to incorporate 140 large companies and law firms in a private blockchain. This attempt will ensure data integrity and authenticity, data privacy and security and coherence between large legal departments and law firms.
Smart contracts are another smart decision to make when using blockchain. They are basically automated contracts which operate through a series of instructions. In the legal world, smart contracts make the process more straightforward, as the two parties involved in the transaction communicate directly. In other words, a smart contract meets all the requirements of a traditional contract, but it’s only faster, easier and more efficient.
Areas like real estate, commercial transactions and contracts demanding contracts or transactional lawyers are facilitated. So, are blockchains and the law friends or foes? They work well together, they help one another, and they bring secure innovations in the area of investment practices. It’s therefore safe to say that they are probably partners.