The concept of using blockchain for legal purposes has endured, finding a practical application in the legal tech startup Incorporight. Unlike earlier hype-filled attempts, Incorporight focuses on functionality over fanfare. This pragmatic approach could potentially mark a significant shift in how blockchain technology is integrated into the legal sector.
Subtle Integration of Blockchain Technology
Incorporight, which assists lawyers and business owners in maintaining and securely modifying company information, does not 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 very bottom. This understated approach highlights the platform’s emphasis on practical utility over technological buzzwords.
Notably, Incorporight’s service does not involve any cryptocurrency or make grand claims about ending centralized databases. Instead, the Canada-based platform offers a comprehensive suite of services for company formation, structuring, and data recording. These include managing annual filings and key company documents, all supported by DLT. The technology serves as a robust foundation, ensuring secure and efficient operations without overshadowing the platform’s primary functions.
Choosing the Right Tool for the Job
Tyler Benoliel, CEO and founder of Incorporight, explained to Artificial Lawyer that the company employs Hyperledger Fabric, a DLT solution developed by Linux. He acknowledged the negative connotations associated with blockchain due to its close ties with cryptocurrency. To avoid these associations, Benoliel prefers using the term DLT in discussions about the technology.
Despite the past hype and subsequent disillusionment with legal blockchain tech, Benoliel sees a clear advantage in distributed ledgers: they are ideal for maintaining secure records. He compared this modern approach to traditional paper-based company records, 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 corporate information.
The Practicality of Blockchain
Benoliel advocates for using blockchain simply because it works. He believes that blockchain’s immutability makes it the best option for securely recording data. Stripped of the hype and unrealistic promises, DLT provides a reliable way to maintain data integrity.
While Benoliel is a believer in blockchain’s potential, he does not exhibit the evangelical enthusiasm of early legal blockchain proponents. He foresees a gradual shift towards decentralized databases in the business world, driven by practicality rather than ideology. According to Benoliel, the adoption of Web3 technologies will occur not because it is trendy, but because it is the most sensible solution for many applications.
Endorsements and Partnerships
Incorporight has received approval from the local law society in Ontario to offer its services to consumers. Additionally, the company has formed a partnership with one of Canada’s leading law firms. These endorsements underscore the platform’s credibility and potential for long-term success.
Benoliel conveyed that Incorporight is committed to the long haul, positioning itself as a legal tech service that leverages the best technology for its needs. He emphasized that Incorporight is not merely a blockchain company, but a practical solution provider using DLT to enhance its services.
A Pragmatic Future for Legal DLT
The resurgence of legal DLT may not be driven by venture capital or radical promises but by its practical applications. Incorporight’s approach exemplifies this trend, focusing on delivering functional and secure solutions for legal and business needs. As the industry continues to evolve, Incorporight’s success could signal a broader acceptance and integration of DLT in the legal sector, driven by its proven utility rather than speculative hype.