How can Blockchain change the legal industry?

6

October

2021

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Blockchain is an example of a Distributed Ledger Technology (DLT), in short this means a distribution of independent computers which are also referred to as nodes. These nodes are responsible for recording, sharing, and synchronizing transactions in the ledger. A great advantage of this is that the transactions are decentralized instead of being centralized in one local ledger. These ledgers can be used to distribute digital assets without the need of copying or transferring, to facilitate access to the ledger from anywhere due to the decentralized form, and it generates trust in the asset due to the prevention of changes created by the transparency of the ledger.

Learn How To Integrate Blockchain In Legal Industry | by Robert Smith |  Medium

The legal industry will be affected by the Blockchain ledger in multiple ways. Firstly, cost reduction and automation due the introduction of smart contracts. Smart contracts provide a way to change the way of working in the legal industry, traditional static documentation will be otiose in the future since smart contracts can automate the process of terms and conditions application. Smart contracts can automatically detect if terms and conditions are met or not, after this it can automatically execute the effects of this contract. This results in a less labor intensive more effective process for both parties which means a cost reduction.

Another interesting area where blockchain can affect the legal industry is in transactions of ownership of digital and physical assets. Legal firms often need to supervise big transactions to secure a secure and fair transaction for both the buying and selling parties. Human errors can be minimized if legal firms would use blockchain technology to settle transactions. Agreements and restrictions can be automatically followed since they are integrated in the protocol code of the blockchain.

Lastly, Blockchain will bring an extra layer of integrity and transparency in the legal industry. Legal documents which are transferred or stored in an insecure way are a big target for hackers with bad intentions, information shared and created by lawyers can be valuable and publicizing this information can have many negative effects for the owner of the information. Legal offices can decide to store sensitive legal documents in private append-only ledgers where information is immutable this results in more integrity. Hash values will not match if data is changed or tampered which warns the legal firm for any violations.

Summarizing from the above, blockchain can change the legal industry in a positive way. Automation and smart contracts will result in cost reductions for all parties, and Blockchain data storage will result in integrity and transparency of legal information.

Sources:

Evans, J. (2018). Curb your Enthusiasm: the real implications of blockchain in the legal industry. J. Bus. Entrepreneurship & L.11, 273.

Goldenfein, J., & Leiter, A. (2018). Legal engineering on the blockchain:‘Smart contracts’ as legal conduct. Law and Critique29(2), 141-149.

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Risks of home automation

22

September

2021

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Smart homes are on the rise people around the world are using technology to improve the way of living, smart homes can improve security, comfort, and energy usage. It is estimated that nearly 90 million people will be living in a smart home soon. Smart home environments are prime examples of the Internet of Things (IoT) because they use cyber-physical systems that generates and distributes complex data via multiple sensors, applications, and systems to create a smart environment. Smart home systems can control the house occupied and unoccupied on behalf of the humans that control this system, this automatically brings risks to usage of smart home systems regarding safety and privacy.

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Research has shown that the biggest threat comes from software vulnerabilities in the mobile application as it is in almost all systems containing software. These vulnerabilities allow third parties to control the home automated system which could result data theft and a violation of privacy. Another result could be the fact that the system can be physically breached when homeowners are not present which will lead to home which is vulnerable for burglary. This results in a high risk for using home automated systems. There is a high need for secured coding and meticulous testing of the software for potential penetration points. Another important point of interest is the fact that security must be priority number one when developing home automation systems and a risk analysis should be conducted. Software engineers share known vulnerabilities in a public CVE (Common Vulnerability and Exposure) database. This helps engineers to easily mitigate security patches in new and old systems. Engineers can create a more safety in home automation by sharing and contributing to the CVE database which results in situational awareness.

Another risk in home automation are human actors, humans are always a weak link in software-based systems. The biggest threat is the lack of security this could be a weak password or no password at all, this is mainly the problem at the in-house gateway which could give you access to the complete system in case of a hacking attack. Engineers should add password requirements and double verification for instance a multi-factor-authenticator which would add a whole layer of extra security.

The conclusion from this information is that smart home allows consumers to collect a lot of date about the household, it could improve security, comfort, and energy usage but people are not aware that there are multiple risks which could violate privacy of occupants. It is important for engineers to be aware of the risks and conduct risk analysis and test the software severely before launch. Timely patching will enable the systems to be secure for the long term. Summarized, home automation shows huge potential for household but corresponding risks are mainly unknown for users.

References

Business Insider (2020).How IoT devices & smart home automation is entering our homes in 2020. Retrieved from https://www.businessinsider.com/iot-smart-home-automation?international=true&r=US&IR=T

Jacobsson, A., Boldt, M., & Carlsson, B. (2016). A risk analysis of a smart home automation system. Future Generation Computer Systems56, 719-733.

The Internet of things: Manage the complexity, seize the opportunity, white paper by Oracle, 2014. Available at: http://www.oracle.com/us/solutions/internetofthings/iot-manage- complexity-wp-2193756.pdf 

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