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Blockchain in Legal Technology: Incorporight’s Practical Approach
The concept of using blockchain for legal purposes has endured, finding practical application in legal technology startup Incorporight. Unlike previous hype-filled efforts, Incorporight focuses on functionality rather than fanfare. This pragmatic approach could potentially mark a significant shift in how blockchain technology is integrated into the legal industry.
Subtle Integration of Blockchain Technology
Incorporight, which helps lawyers and business owners securely maintain and modify business information, doesn’t heavily advertise its use of blockchain or distributed ledger technology (DLT). The website features only minimal mentions of DLT, strategically placed halfway down the main page and at the bottom. This low-key approach highlights the platform’s emphasis on practical utility over technological buzzwords.
Notably, Incorporight’s service doesn’t involve any cryptocurrencies or make any grand claims about the end of centralized databases. Instead, the Canada-based platform offers a full suite of services for incorporating, structuring, and recording business data. These include managing annual returns and key business documents, all powered by DLT. The technology serves as a solid foundation, ensuring safe and efficient operations without overshadowing the platform’s primary functions.
Choosing the right tool for the job
Tyler Benoliel, CEO and founder of Incorporight, told Artificial Lawyer that the company uses Hyperledger Fabric, a DLT solution developed on Linux. He acknowledged the negative connotations associated with blockchain because of its close ties to cryptocurrency. To avoid these associations, Benoliel prefers to use the term DLT when discussing the technology.
Despite past hype and subsequent disillusionment with fiat blockchain technology, Benoliel sees a clear advantage in distributed ledgers: They are ideal for maintaining secure records. He likened this modern approach to traditional paper-based business ledgers, which were often cumbersome and susceptible to tampering. Digital ledgers, while an improvement, can still be vulnerable to hacking and fraud.
Benoliel emphasized that a decentralized ledger, authenticated by multiple nodes, offers a more secure solution. This approach eliminates the risks associated with centralized digital ledgers, ensuring the integrity of business information.
The practicality of blockchain
Benoliel advocates for blockchain simply because it works. He believes that blockchain’s immutability makes it the best option for secure data storage. Stripped of hype and unrealistic promises, DLT provides a reliable way to maintain data integrity.
While Benoliel believes in the potential of blockchain, he doesn’t display the evangelical enthusiasm of early fiat blockchain advocates. He predicts a gradual shift toward decentralized databases in business, driven by practicality rather than ideology. According to Benoliel, adoption of Web3 technologies will happen not because it’s trendy, but because it makes the most sense for many applications.
Approvals and partnerships
Incorporight has received approval from the local law society in Ontario to offer its services to consumers. Additionally, the company has partnered with one of the leading law firms in Canada. These approvals underscore the credibility of the platform and the potential for long-term success.
Benoliel said Incorporight is committed to the long term, positioning itself as a legal technology service that leverages the best technology for its needs. He emphasized that Incorporight is not simply a blockchain company, but a practical solutions provider that uses DLT to improve its services.
A Pragmatic Future for Legal DLT
The resurgence of legal DLT may not be driven by venture capital or sweeping promises, but by practical applications. Incorporight’s approach exemplifies this trend, focusing on providing functional and secure solutions for legal and business needs. As the industry continues to evolve, Incorporight’s success may signal a broader acceptance and integration of DLT into the legal industry, driven by its proven utility rather than speculative hype.