CASE STUDY: BLOCKCHAIN FOR NOTARIES AND LAWYERS
There are countless applications for the blockchain — our next use case is about the support of notaries and lawyers. We show you, how blockchain will not only replace work but create new opportunities in the future.
The notary business and the blockchain have a lot in common. They create trust between two parties, ensure transparency and must be neutral. It is not uncommon to hear that notaries are replaced by the blockchain in the course of time. We have the opinion that the blockchain cannot replace the notary, but can complement them excellently. This will change the notary’s business field, expand it and create new challenges that will have to be mastered. Notaries act as neutral parties in day-to-day business and thus create trust. Blockchain technology also brings trust to the markets. The blockchain can make daily work more efficient by reducing archiving work and at the same time increasing the level of digitization. This maximizes security and minimizes paperwork. The notary can make his daily work easier and devote more time to what is most important: the customers.
Verification of a document
Notaries make it possible to conclude and seal important business transactions every day. They check the authenticity of documents and business partners whenever a simple contract is not sufficient. This can be done even faster in the future on a blockchain based system: Once a document has been signed, it can be presented electronically and remains unchangeable stored on the blockchain — of course, supplements can simply be attached digitally. But who is the trusted person that originally puts the document in the trusted enviroment. This must be someone businesses and people traditionally trust, e.g. a lawyer or notary. Then the printing, authentication, filing and archiving of documents can be drastically reduced and at the same time the efficiency of the processes can be increased.
Registration in the land register/land transfer tax
The purchase of real estate is often a big step for both private individuals and entrepreneurs. No matter whether it is a new branch of a business or the way to your own home: An entry of a property in the land register, the payment of the land transfer tax and the completion of all formalities is a very tedious process with countless intermediate stops. The blockchain technology helps to accelerate these processes and to reduce the effort. The processes between authorities, notaries, buyers and sellers can be almost completely digitalized. For example, notaries can confirm several purchase contracts in a shorter period of time and bring you faster into your new home.
Digital storage of documents
Many customers want to store highly sensitive data on the blockchain. These are often trustworthy and sensitive documents, such as a will, a power of attorney or a living will. The storage and authentication of these sensitive documents must be guaranteed to be completely secure. Sometimes, however, it is important that a document can also be presented at short notice: e.g. a living will. This will be possible in the future via the blockchain.
A living will or precautionary power of attorney must not fall into the wrong hands and must still sometimes be reachable quickly. As a result, such documents are often stored very securely in a safe at a notary’s office or in other safe but also inconveniently accessible places. However, accidents not only happen on a weekday and thus access to such important documents should always be available. Some of these documents were never found and therefore could not be considered to the disadvantage of the authors.
These documents are usually very unexpectedly needed and must then first be procured from the respective storage location. An appropriate storage location today would be digital and encrypted on the blockchain. This could be viewed, for example, with an app on a smartphone or a program on the computer. The user interface can be designed in such a way that it only takes a few clicks to access the desired document. Access would be secured by a fingerprint, password or face scan. The client can, for example, give friends and family access to individual documents or enable doctors and hospitals to access a living will. This is made possible by the use of blockchain technology. All documents would be stored securely and unalterably. Notaries would digitize the documents and place them in the blockchain — thus trust in the integrity of the data is always guaranteed.
Tokenization of Assets
Blockchain technology is on everyone’s lips and new fascinating fields of business are constantly opening up. One of these areas is currently the tokenization of assets: assets such as stocks, works of art or even cars can be traded digitally on the blockchain. We show you why notaries are so important for the success of tokenization and why completely new tasks are emerging.
In general, both movable and immovable as well as material and immaterial goods can be tokenised, such as cars, real estate, works of art, watches or securities. The “token” are in principle the digital representatives of the real object, whereby the physical object is separated into ownership shares and exploitation rights. Thus, assets can be made divisible at will and thus transferred inexpensively, securely and quickly. New liquid markets emerge and even investors with smaller budgets are in a position to invest at least in parts of a valuable investment.
In the future, companies and private individuals want to tokenize and trade in valuables. Someone must, however, guarantee the potential buyer that the object of value actually exists on the one hand and on the other hand tell him where the object is located and in what condition it is. This new type of service could be provided by notaries and lawyers. A professional group that already enjoys the trust of entrepreneurs and private individuals. This trust is even more important in the future in order to build the bridge between analog assets and digital token.
This shows you, how digital innovations not only replace jobs but create new opportunities. The Blockchain brings new possibilities and opportunities to all businesses and consumers.