Consumer Adoption of Blockchain Might Not Erase Privacy Concerns
While the widespread adoption of blockchain has benefits for the legal industry, it also creates new questions around privacy and cybersecurity.
November 07, 2018 at 09:00 AM
3 minute read
Up until now, distributed ledger technologies have mostly been the domain of specialists and lawyers. But that could change in part due to Dapper Labs, a developer that has received $15 million in financing to forward its ongoing mission of using blockchain-based games and apps to raise the tech's profile among the average consumer.
Launching a game that does the same thing that email did for the internet is a heck of a goalpost, and even if the kick is good, it's a long way off. Still, attorneys could be among the first groups to feel the impact of the new technology. The widespread adoption of blockchain could change how they practice finance and put a new spin on old questions about privacy and cybersecurity.
Timothy Spangler, a partner at Dechert, thinks blockchain could wind up taking on some of the burden of trust and verification, a task traditionally shouldered by lawyers, and that the biggest disruption could occur in the field of finance.
Having attorneys on hand to issue legal opinions or obtain certificates from corporate parties can help build confidence between two parties who have no reason to put much faith in one another. “So many of those elements are there to increase the level of trust in the room,” Spangler said.
Blockchains utilized in elements like smart contracts can facilitate a lot of that trust up front, but won't entirely eliminate the need for a human element in the practice of law. Spangler believes that clients might be more comfortable with a hybrid approach, where flesh and blood and paper still play a role, and lawyers with a background in mathematics or coding have some advantage.
“I personally foresee a world where the coding of smart contracts and the construction of those sorts of relationships operates in part hand-in-hand in order to be able to give comfort. I can envision a world where you have contacts on paper and then smart contracts actually connected to the various assets,” Spangler said.
One thing that probably won't be going away even if “blockchain” becomes a household word are questions about privacy and cybersecurity.
“I think privacy and cybersecurity are going to be places where there's a real kind of mythology about the anonymity of Bitcoin or the anonymity of various blockchains,” Jeff Ward, director of Duke University's Center on Law and Technology, said.
Blockchain and other distributed ledger technologies operate on a decentralized network as an immutable ledger that create data that no one party has control over. The benefits for privacy and the security of personal information are obvious—which could wind up being the problem.
In a world where California Privacy Act or the EU's General Data Protection Regulation reign, consumers are increasingly aware about the vulnerability of their personal information. The mythology Ward was talking about could be shattered the moment a hacker figures out how to penetrate the anonymity afforded by a blockchain or the platforms deploying its technology.
“I think that's a likely place for some litigation or some strife moving forward,” Ward said.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1As 'Red Hot' 2024 for Legal Industry Comes to Close, Leaders Reflect and Share Expectations for Next Year
- 2Call for Nominations: Elite Trial Lawyers 2025
- 3Senate Judiciary Dems Release Report on Supreme Court Ethics
- 4Senate Confirms Last 2 of Biden's California Judicial Nominees
- 5Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250