Away from the din of 18,000 people at the Consensus 2022 conference, Sandeep Nailwal, CEO of Polygon and I caught up. This covers all things Layer 2 and the Merge coming from the Ethereum upgrade.
Category Archives: digital identity
Top 10 err.. 16 LegalTech Talks of 2021! Now available!
The list is out! Last year was an amazing one for LegalTech talks and thought leadership. I presented over 70 times on Blockchain, Cryptocurrency, AI, Workflow, and the Legal Platform. It was also a fascinating year where edgy concepts entered the LegalTech space, including the Metaverse and NFTs. In all likelihood, these will continue to flourish in 2022.
If you’re game, you can watch the top sessions from the past year on a huge swath of LegalTech and general tech topics below:
Preparing Now for the Legal Technology Landscape in the Decades Ahead
Innovation in the Legal Industry
Dauntless Assent Into Legal Innovation
Blockchain, Cryptocurrency, DAOs, NFTs, Metaverse:
An Introduction to the Impact of Blockchain on Legal
Blockchain 2.0 Advanced Blockchain – Case Studies and the Evolution
Cryptocurrency, DeFi, NFTs and the Metaverse
Emerging Technology Conference on Blockchain and the Metaverse
Understanding Digital Identity & Its Impact on Legal
Breaking Down AI – The Underlying Language and Technology of Artificial Intelligence
Artificial Intelligence and the Impact of Exponential Technology on Legal
The State of Cybersecurity in Legal
The Dark Web — The Evolving Landscape and its Impact on the Legal Industry
Legal Platform & APIs
Legal Platforms, APIs, and the REvolution of Whizzbang LegalTech
Podcast: The Hearing – Doug Pepe – Partner – Joseph Hage Aaronson LLC
From the producer: You may have watched as Mark Zuckerberg explained the internet to Congress in a way that felt a bit unnecessary. Well, this episode is sort of the opposite of that. Joe Raczynski is joined by legal and mathematical macroeconomics genius Doug Pepe, to take us through blockchain, tokens and cryptocurrency in a way that’s genuinely enlightening.
The legal industry is sometimes accused of not keeping up, but we know that’s not true. Lawyers are occupying this space now. Their clients are very active and they have a crucial role to play in the serious policy issues being debated.
Doug, a partner at Joseph Hage Aaronson, started his blockchain journey by building gaming computers with his young children, and then teaching them how to mine bitcoin. Fast forward and Doug is now an expert on blockchain privacy, smart contracts and digital identity.
Find out more at tr.com/TheHearing
Justice for all? The impact of AI & blockchain on legal accessibility
Originally published on AnswersOn
By Joseph Raczynski
I have been incredibly fortunate to have traveled extensively, which has impacted my global vision. Visiting almost 40 countries, I have witnessed firsthand the enormous discrepancies in wealth, opportunities, and lifestyles that exist around the world today.
I’ve seen the lavish gilded rooms, complete with Picassos on the wall, in the homes of 35-year-old billionaires in Dubai; and just a five-hour flight away, I’ve seen families hover around an open fire to stay warm alongside their metal sheet home on the outskirts of Kathmandu, Nepal, in the foothills of the Himalaya Mountains. And I’ve observed the steep mountain face of the drug-scared city of Medellin, Colombia — a concrete jungle with the activity of an ant hill. I’ve walked the rural farmlands of Cambodia, which are still littered with signs for landmines, and seen some children showing the stark evidence of their life-changing encounters with these mines; and I have wandered the extremely remote rain forest of Panama with its indigenous people.
The one element that buoys my spirits besides the genuine kindness of people, the promise of technology and our future.
One unexpected item that is omnipresent for both the wealthy and the less fortunate — a mobile phone. This is likely the most significant key to empowering people; and with a mobile phone, people around the world can connect, share ideas, and exchange money.
Joseph Raczynski will be speaking at the World Bank’s Law, Justice and Development Week 2019: Rights, Technology & Development in Washington, D.C., on Nov. 4-7.
Now, I am also seeing that connectivity energizing people’s legal liberties and human rights. We are evolving to a point where each person around the world has a computer in their pocket. Through this technological leapfrogging, a high school student in a remote village of Cambodia can be almost technologically on par with her counterpart in Amsterdam.
Exponential growth globally
Way back in 2015 I wrote about how we are entering a phase of Exponential Growth, and how that will impact the legal industry. What is evident now, however, is that this growth is not solely for the global law firms in the Western world, but is cascading to individuals in the most remote parts of the globe. Most importantly, we see how they will be able to take advantage of legal services which previously were nearly impossible.
Increasingly available chatbots empowered with Artificial Intelligence can now offer improved access to justice, helping people make decisions or even seek asylum. These applications, which are essentially legal workflow tools, can generate questions and answers via a mobile phone from anywhere in the world.
Further, blockchain is already impacting trust with small businesses. A family-run business in Argentina that enters into an agreement with a distributor can do so via a legally binding contract supported by smart contract technology securely saved to a blockchain. If a problem arises, for a small amount of money, arbitrators around the world can weigh in and help resolve the issue, all enabled through a mobile device.
The power of blockchain and AI is at work in Africa, where a farmer can opt into an insurance program on their phone. With as little as a dollar placed toward insurance, if the farmers crops don’t survive a drought, AI-powered satellite imagery can automatically pay those affected. Combing smart contracts on a blockchain with the AI-image recognition technology, people previously without legally binding contracts to support their business can sustain themselves. These types of significant changes will impact people positively.
I am extremely optimistic and passionate about our future, as technology-infused legal processes filter into all communities around the world. This new age will lift people out of poverty, reduce domestic violence and hunger, and improve the lives of people globally. With the technological power of a mobile phone and legal solutions infused by AI and blockchain emerging, there is a bright spot for all of us on the horizon.
For more on the World Bank’s upcoming event, listen to a podcast with Sandie Okoro, Senior Vice President and General Counsel at the World Bank, conducted by Thomson Reuters’ Joseph Raczynski.
Kleros.io (a Thomson Reuters Incubatee) Publishes Handbook of Decentralized Justice
Kleros.io is a blockchain startup which Thomson Reuters incubates in the Legal Technology space. They recently published a book about dispute resolution using blockchain technology. I had the good fortune to work with Federico Ast, Founder & CEO on a chapter for the book.
Please feel free to download a digital copy here:
Kleros’ Handbook of Decentralized Justice available for download NOW!
Here is a section from my conversation with Federico:
One of the cores of our work at Kleros is researching the prospects of legal tech and the impact it will have on the legal business in the coming years. Joseph Raczynski, Thomson Reuters’ resident legal futurist is one of the select few we always love discussing.
Joe has a wide view of the legal industry and the business and technology that will affect it in years to come. Let’s dive into the conversation!
What’s a legal futurist, what’s the job description of that?
There is none. I think they’re still working on that in some dimly lit back room. It comes down to this – I’ve spent a lot of time on the core pieces of technology, either building computers, working on networks, white hat hacking systems and delving into how businesses processes work by studying sociology and believe it or not, nature, which inevitably impacts how we interact and develop.
I have an undergrad in economics and sociology, so I hope I understand the business world, but also believe I have some thoughts on how humans think, how we work as groups. The grad school education formalized and enhanced some of my thoughts with an MBA, and a Masters of Science in e-commerce.
I tried to spend my time on what people are doing in other businesses, in the financial world, in the medical world, and then pull that into what is happening in the legal industry.
Sometimes the legal profession might be a tad further behind the curve with what we see in other industries, so what I can do is peer into how others are working and parlay that into what may happen for legal.
As a practical example, I was mining Bitcoin in 2011 trying to understand how it works. Most of my friends and colleagues asked ‘what is this, what are you doing?’ They thought it was pointless, and the jury was out in my head about it, but I found it very intriguing, so I continued to explore it.
If you play around with these technologies before most know about them, at very early stages, you can get a better picture of what is going to happen in the future with different industries, the legal industry being one of them.
The next thing to take a gander at is memory on organic materials – imagine saving all of your firm information to a tree? Seems bizarre, but at some point these things will happen.
You don’t have a background as a lawyer, but in business and social science. How did you become interested in the legal industry?
I see the legal industry as one of the spaces with the greatest opportunities. You know this is growing because of all of the startups that have infiltrated the industry. There are so many startups that are looking at the legal space right now, because there are two parts to it – the business of law and the practice of law. Both of these are ripe for great efficiency across the board.
These startups are looking at different aspects of these two facets, thinking of how to make it more efficient, to make it a bit easier for the clients to better serve themselves, or to work with law firms and have law firms better service their clients.
I see AI and blockchain leading the way – the AI algorithms making things faster and more efficient and blockchain saving this information and hopefully making it so that the trusted third party is now a computer network.
The perfect example of this is what you guys are doing with Kleros. I honestly think this is one of the best examples out there in terms of how we can create better efficiency in a “trustless” environment, working with blockchain to be able to save information, secure it, but also have people leveraging this tech to create a better environment for all parties involved in a dispute.
Since you mention Kleros, what caught your attention about our project?
What I find the most fascinating about Kleros is the idea that you are going to leverage blockchain as a space in the ether that allows people to file a complaint, process that complaint, and eventually resolve it, using a system based on blockchain, and wisdom of the crowds.
Crowdsourcing enables the expansion of the pool of people making the decision. This makes a lot of sense, as it can greatly enable efficiency and reduce costs in a large number of dispute resolution processes.
The economic model that aligns individual incentives with honest decision making is a great innovation within the legal industry.
How do you see a new technology like blockchain interacting with traditional government courts and regulation? Are legacy legal systems going to adapt to blockchain or are they going to be disrupted?
That is a great question and I think the answer depends on where you are in the world.
In time, I think blockchain will absolutely disrupt the way the government interacts with information and the way they verify it. I was in Dubai some weeks ago and met with government officials working on a full-on blockchain enabled verification system that, when decisions are made, puts everything on the blockchain.
Anyone will be able to look up that decision with ease and they want to have this up and running within the next 18 months without having to go through a proprietary company. In Dubai, it is the government who is pushing law firms in this direction. The government is leading there.
In the United States, on the contrary, you find that traditionally it is the corporations that lead change. Law firms tend to follow, then eventually, a little bit further down the road, you may see the government starting to get involved in the space.
Depends on where you are and how this works, but clearly some changes are afoot in the next five years.
What about AI? How is it likely to impact the legal industry?
It’s a funny one. All we see in the news is the AI and how it’s going to disrupt law firms or the legal industry in general. There is so much talk about this every single day, how the robot attorney is coming…
I had the good fortune to meet the pre-eminent legal technologist, Richard Susskind last year in London. One thing he says is that, in the short term, we are probably overestimating the power of AI, but in the long run we are probably underestimating it. We’re at a stage that AI is in the news and most of the attorneys, partners, and managing partners of law firms that I meet ask – is this really happening?
It’s clearly cresting atop Gartner Hype Cycle, similar to what is happening with blockchain, there is a lot that may happen with both of them. On the AI front, you are seeing companies that come along and have very smart ideas about how they can change a section of how the practice or business of law works.
For example, let’s say there is a merger between two massive organizations, both have 50,000 employees. One of the core things they want to look at are the employees they have for both organizations to see if they mesh well. In order to do this, they need to review all 100,000 employment contracts identifying golden parachute language… For example, if anyone got a $50 million bonus if the merger took place.
Currently, many global law firms do this due diligence. They put 100-200 attorneys on it by having them read every single contract and making sure that those documents are standardized – not containing that golden parachute.
Increasingly there are algorithms and associated programs on the market that go through all the contracts, looking for all the standard language, kicking out those contracts that don’t have the common phrases or terminology. Those kick-outs are then reviewed by a human, resulting in a massive increase in efficiency and less people hours.
These startups who are creating these applications, are pushing the bar in legal. They are devising better ways to get the job done using AI – in an incremental way. Will we see a robot attorney in the next few years? No. But these types of tools leveraging some AI will ramp up quite considerably across the board.
What is the result of all this? In the world of AI and blockchain, in fifteen years, say, what’s the place of lawyers in all this? What does the legal system look like?
Ten years out, and these are just guess, all of the lower tier work that we traditionally see law firms doing, be it the e-discovery, some of the contract work, all of that will probably go away.
E-discovery now still has a lot of human eyes looking at a lot of these documents, after a first pass that maybe a computer completes. In time, that will probably be all computer. The documents that are out there right now, the normal contracts, that will all go away.
It’s that very top level where you need human imagination, human thought, collaboration that will be the furthest out to be disrupted. But there are a lot of attorneys that are doing just day-to-day work, canned phrases that you use to build up that document, a lot of that stuff will be impacted in the next, say, five years. In ten ten years, I’d say it’ll definitely be impacted. That’s the direction that I personally see it going in.
Law firms that don’t change the way in which they work will probably go away.
Lastly, what we are starting to see in Europe, as well as Australia and New Zealand, is that the Big Four of auditing and accounting are starting to take away some of the business from law firms.
Not only can they now handle law firm work, they can handle everything else – they have full-on accounting, the business processes, all of that is going to be fulfilled by these massive organizations. That will absolutely impact law firms. This will come to the US soon, it is inevitable.
What advice would you give to a law student preparing for this new world?
Don’t practice law. (Laughs) I’m kidding.
I think it’s still a fantastic profession which requires a great deal of talent and unique thought processes. The advice that I actually gave to a few people who were interning here this summer, who were looking at law school: spend as much time on understanding the basics around law.
If your passion is around helping people and the love of law, go to law school. In preparation for your studies look at some of the startups like Kleros and try to work there to see what a lawyer will be doing in the future. Understand the growing relationship between technology and the law.
Clearly law rules the roost, but technology will continue to play a role in how it is practiced, and frankly what will be done by the future attorney.
I think companies should bring in a few aspiring attorneys to help them understand where we are going as a society, as a business. The future student should work with startups, work with bigger companies that are involved with e-discovery or anything in the legal technology world to help them get an understanding of how the technology works, how the vendors work and how this stuff may impact the way they practice law. Getting a full-rounded perspective of where the world is heading is essential – especially if you are dropping 300K USD on education.
One last thing I’ll mention about this is – I don’t know who originally thought of this concept, but there is a phrase called a T-shaped attorney. It’s literally like the letter T. Across the top of the letter T, those aspiring attorneys are learning everything they can about the business and the practice of law. They are learning a bit about project management, maybe they’re learning a bit about how to code or how vendors work.
More and more we are hearing about attorneys learning to code in different languages, so they have a better understanding of how that works. Understanding how vendors work, how startups work in the legal tech space. That’s the top of the letter, and the deep part, the extension of the letter T is the practice area they’re in, litigation, automotive practice or any else which they know almost as an expert. We are really talking about a well rounded attorney.
What books or other resources can you recommend to people to read and start learning about the future of law?
Some of the best books out there about legal technology and what impact its’ going to have are by Richard Susskind, most are aware of him, but if you haven’t seen or heard this gentleman from Scotland, he is on tour frequently, he talks about amazing things which should be happening in the legal industry.
He has a plethora of works out there. I spend a lot of time on YouTube in my off hours, looking at what people are thinking, what they’re talking about in many different industries, clearly within the legal tech industry as well, so that’s a great resource. Twitter has a plethora of great discussions that are happening as well.
Shameless plug, you can always check out my blog at https://JoeTechnologist.com, there’s always one or two hopefully decent ideas there that could be something worthwhile.
A presentation of Kleros with some extra flavor given by Joe Raczynski
Forum Magazine: Blockchain’s Promise – Verifying Value One Block at a Time
Originally published in Forum Magazine
by Joseph Raczynski
Blockchain technology is truly transformative, impacting almost every industry. Over the next decade, this technology will significantly transmute the legal landscape as well – a process that has already begun.
Blockchain was initially considered a ridiculous notion – the idea of a digitized ledger beholden to no single owner was derided as unusable. However, the conversion of blockchain from joke to genuine is stark. For example, the top 50 banks in the world have unified in the realization this technology could disrupt the financial industry.
For those newer to blockchain technology, here’s a brief history: In its simplest form, the term “blockchain” refers to a peer-to-peer network of computers running a common software protocol that includes a database replicated on each computer connected to the network, where each user interaction (other than a query) is recorded as a new entry. (Each computer is called a “node,” while the database is often referred to as a “distributed ledger.”)
Further, each blockchain has a mechanism, referred to as a “consensus algorithm,” for ensuring that each copy of the ledger is updated in a consistent manner and is otherwise identical to all other copies of the ledger across the network. Thus, once a transaction has been recorded on the ledger, that record is shared among all the ledger’s users, and generally, it can’t be deleted or overwritten.
Is this technology ushering in an era that creates an undeniable source of truth for contracts and digital identity? How else might it impact how law is practiced and how the legal industry operates?
The Smart Contract
Central to any discussion of blockchain and its legal impact is understanding “smart contracts,” a term that has been around for decades but in this landscape has a specific meaning. A smart contract is a few lines of computer code that creates an “if/then” statement, e.g., if Amazon® stock is at $2,000 on January 1, 2019, then sell it. What is special about smart contracts on the blockchain is that once an agreement has been reached by two parties, it is programmed onto the platform and becomes self-executing and immutable – without any human intervention. For example, Ethereum, the first blockchain platform to popularize the idea of the smart contract, permits people to code “if/then” statements onto the blockchain or into a database with ease, allowing for infinite applications.
Clearly, self-executing legal documents will at some point be the norm. This is one of the most significant efficiencies that we will see in the transactional space.
Early on, legal industry experts saw that blockchain’s smart contract applications alone had the capability to revolutionize how transactional attorneys practice law, dramatically changing how they interact with documents and clients.
Indeed, it may change the way lawyers view their very function. “These systems embed legal logic, require review by legal counsel and raise unique issues around the proper scope of the lawyer’s review versus the engineer’s,” says Joe Dewey, partner at Holland & Knight. “On an ongoing basis, corporate counsel will need to ensure that the systems are updated when necessary to account for changes in law and company policy.”
The Future with Blockchain in the Legal Profession
Besides the revolution in smart contracts, blockchain is already changing many other aspects within the legal industry, such as:
Cryptocurrency and the Tokenization of Assets – The creation of cryptocurrencies like bitcoin, which use the technology to keep track of ownership and trades, is how most people know blockchain. Digital tokens that represent real value or ownership of other tangible assets has become one of blockchain’s most widely watched developments. With companies and others issuing these tokens via Initial Coin Offerings (ICOs) – raising more than $10 billion thus far this year – attention is being paid.
In the future, we could see all assets represented by these tokens, e.g., a car, house or painting, each a store of value represented by a token and making the transactions of leasing, renting or selling that asset far easier. This will have an impact on how we create and distribute wealth, further impacting the legal industry.
Digital Identity – With the 2017 Equifax breach of 160 million individuals’ private data, our Social Security numbers are nearing the end of their usefulness and a newer identifier may be created to replace them.
Recently at an MIT event, an organization named Sovrin described a new world where each of us will have a digital wallet containing all of our private information, including money, health records, log-ins to websites, birth certificate and driver’s license. Behind all of this information will be blockchain, enabled so there will no longer be a central point of breach where millions of people’s information can be exposed at once.
Legal Industry – Many have predicted that most administrative work now completed by law firms will be replaced with blockchain-enabled solutions – and in more specialized legal matters, such as due diligence, blockchain will have a similar oversized impact. Share ownership tables and company records will be transferred onto blockchain, allowing investors, acquirers and third parties to complete their diligence in less than one hour instead of the typical weeks or months. IPO registration offerings could be processed is less than a week instead of the typical six to nine months.
In a similar vein, Holland & Knight’s Dewey sees a significant change to law firms’ back offices. “When a law firm closes a loan for a bank it needs to send over copies of the executed loan documents and other post-closing deliveries… often, this doesn’t happen,” says Dewey. Blockchain, however, would allow the law firm and the bank to share a common repository and tracking functionality, even if different front-end software solutions are used. “The increased efficiency of such a system would be significant and benefit both the firm and the bank.”
Clearly, blockchain is ripe for disrupting nearly every industry going forward, and the practice of law may feel the impact the most. Still, these are early days. Significant infrastructure must be built, and a great deal of legal guidance will be needed.
If there was ever a time to study blockchain technology and embrace it – and the opportunities it will create – the time for the legal industry is now.
Podcast: The Hearing With Kevin Poulter & Joseph Raczynski – Future Legal
Podcast: What the Heck is blockchain?
I had the pleasure of being a part of the Thomson Reuters Innovation Podcast series recently. This was a discussion about blockchain. In this talk with Katherine Manuel, Senior Vice President of Innovation in Strategy/Business Development, Jordan Kleinsmith – Director, Innovation in Strategy/Business Development and Sam Chadwick – Director of Strategy in Innovation and Blockchain in Strategy/Business Development.
For an in-depth read, check out more insights at: https://www.thomsonreuters.com/en/reports/blockchain.html
Listen to the Podcast on blockchain here.
Leveraging blockchain to decrease data breaches, increase security
Originally published in Thomson Reuters AnswersOn
By Joseph Raczynski
In the not-too-distant future, blockchain will get personal – very personal. That’s a good thing when it comes to integrity of your digital identity.
The Internet is a complex space for identity management. Every site has a login and password, and those sites which have federated their login credentials have become massive targets for hackers. In addition, the largest institutions charged with holding onto private information have become single points of failure; e.g. Equifax and the federal government’s Office of Personnel Management (OPM). As the security breaches have grown in size, so too has the importance of finding a new solution to protecting of data in our always-connected world.
The solution will soon be in our hands
In the not-too-distant future, you will have a digital wallet containing hundreds or thousands of Decentralized Identifiers (DIDs). DIDs are described as a new type of globally resolvable, cryptographically verifiable identifier registered on a distributed ledger. These will be unique, encrypted, addresses that each of us holds in a mobile app to verify something about us; e.g. our age, height or even personal preferences. They will be granted by a trusted source, but we will hold on to these privately and have complete control over them. As the Sovrin Foundation explains, “The next evolution of the Internet will be the creation of a common identity layer that allows people, organizations and things to have their own self-sovereign identity—a digital identity they own and control, and which cannot be taken away from them.” This monumental shift enabled through the use of blockchain will change the paradigm of ownership of identity from the traditional large organization like Equifax into private hands.
How will DIDs work?
I would expect that in the next five to 10 years, everyone in the United States will be issued a new national identification number to replace our current social security number. As you can see in the above graphic, an agency such as the Department of Homeland Security (DHS) will issue this new number. It will assure the person making the claim is who he or she says he or she is, and issue a DID with a private key (for their eyes only) and public key (for anyone to verify the ID) which the person holds in his or her digital wallet. The DHS will also register proof of claim integrity on the permissioned blockchain (a vetted private blockchain). Going forward when requested, the person can present his or her digital identification (public key) to the verifier (Border Patrol, an employer, IRS) who can then validate this claim’s integrity through the secured blockchain registry. Most of these exchanges of information will use a QR code so the DID can be scanned with ease. This new verification system will create significant efficiencies and will be much more secure.
Eventually, this will be expanded beyond government issued identifiers, though at MIT Sovrin, it was mentioned the IRS is looking at this solution now. You will soon have DIDs for access to anything you normally use for login and passwords on websites, access to your house and starting your car. Anything that requires a key or login now will leverage this new technology. Self-sovereign identity flips the old model of control from central authorities, or single points of failure to individuals.
Episode 2 of THE HEARING is now live!
In episode 2 of The Hearing Podcast Kevin Poulter speaks to futurist Joseph Raczynski on #legaltech #AI #blockchain and the future of the robot lawyer.
Listen now and subscribe to #thehearingpodcast on:
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