In this series of articles, we will explain how Bitcoin proofs can help legal departments. Bitcoin proofs represent a technological breakthrough in legaltech solutions, leading to better protection of digital exchanges with collaborators, authorities, clients or business partners.
Check here the previous articles:
What are the differences with traditional trust solutions?
Traditionally, to address security of sensitive documents, organizations had several options.
When it comes to paper: notaries, lawyers or bailiffs are very useful to make sure some information is properly consigned. Also it has to be recorded with a legal professional, putting their own responsibility, in case of litigations.
In the digital world, centralized institutions used to provide solutions based on cryptography to deliver digital proofs for electronic signature and timestamping. Woleet approaches leverage blockchain technology to address the digital trust problem in a brand new way..
The table below compare trust solutions:
| Law professionals (lawyers, notaries, bailiffs) | Centralized Digital Trust Solutions (Docusign, Certeurope, Certificate authorities) | Woleet | |
| Legal value | *** | **** | **** |
| Cost effectiveness | * | *** | **** |
| Time consumption | * | **** | **** |
| Decentralization | * | * | **** |
| Ease of implementation | **** | *** | **** |
| Privacy | **** | ** | **** |
Prerequisites and limitations
The data needs to be properly archived
With Woleet technology, the data itself stays in total control of the parties. The data is needed to calculate the hash and validate the proof. Therefore, if the data is lost, the proof becomes useless.
Solution:
Choosing this technology requires to organize archiving of sensitive documents, on both sides of the transaction.
Impossible to prove non existence
Solution:
To avoid this kind of situation, we advise legal departments to apply blockchain security for the complete scope of their contracts, in order to set in stone every agreement and every rider.