What Is Blockchain Law? How Legal Professionals Can Use Blockchain Technology in Practice

In addition to providing a more streamlined process for administrative legal tasks, blockchain technology also offers a secure way of storing sensitive legal data.

As blockchain technology continues to transform industries from finance to health care, it’s also making an impact on the field of law. From automating administrative processes to securing confidential client data, blockchain offers powerful tools for law firms and legal professionals. At The Colleges of Law, we offer multiple professional certificate programs designed to help you stay ahead of these technological shifts.

Whether you’re a practicing attorney or an aspiring legal technologist, our Emerging Law and Technology certificates provide the foundational knowledge you need to understand blockchain law and apply it in real-world legal settings. Here’s what you need to know about how blockchain is reshaping the legal landscape and how you can be ready.

What Is Blockchain Technology, and How Does It Work?

Blockchain technology is a shared database that stores data safely and securely over a network. It is called “blockchain” because the data is stored in blocks that are linked together. The data protected in a blockchain cannot be edited or deleted without permission from the entire network, so it cannot be tampered with. Blockchain technology is typically associated with finance and business, with Bitcoin being one of the earliest adaptations of blockchain technology.

Blockchain Law and US Regulations: What Legal Professionals Need To Know

With blockchain being a fairly new technology —the first modern blockchain was created in 2009—laws and regulations are still being developed. As of 2024, the United States has no federal regulations for blockchain technology; they are only at the state level. Many of these state regulations apply specifically to cryptocurrency, which is just one facet of blockchain.

While there aren’t any official federal laws to address cryptocurrency and blockchain yet, the government has outlined some guidelines. The Biden administration released an executive order in March of 2022 that addressed possible risks of blockchain technology while also advocating for responsible innovation. The focus of this executive order outlined consumer and investor protection, financial stability, illicit finance, economic competitiveness, financial inclusion, and responsible innovation. With this technology still emerging, there are bound to be more innovations as well as policies and regulations soon.

How Blockchain Is Used in the Legal Industry Today

While the most common use of blockchain technology is for business transactions, it is a universal technology that can be used in many different industries. In the legal field, this emerging technology can help law firms reduce costs and time by automating some administrative tasks. Blockchain technology can also create a shared ledger system that stores property records and compliance documentation, automates corporate governance, and exchanges smart contracts. Smart contracts represent a significant opportunity for automation with blockchain technology. These contracts can be directly deployed on the blockchain, enabling them to self-execute.

In addition to providing a more streamlined process for administrative tasks, blockchain technology also offers a secure way of storing sensitive data. Given that blockchains are innately immutable, any important files and data that need to be stored from a case’s eDiscovery process can be stored securely in the blockchain.

How To Study Blockchain Law: Certificates and Courses for Legal Professionals

With the continued rise of blockchain technology, knowledge of and expertise in blockchain technology is going to be highly advantageous for law professionals. At The Colleges of Law, we offer two related professional certificate programs that students can choose based on the area of expertise on which they’re looking to expand their knowledge. With both the Emerging Law Professional Certificate and the Technology Professional Certificate, students will gain a deeper understanding of the framework for blockchain regulation as well as how to use blockchain technology for increased efficiency.

Whether you’re a lawyer or a legal professional looking to expand your knowledge into blockchain law, take the next step toward studying an in-demand field in law. The Colleges of Law offers all its professional certificates in person and online for added flexibility. Request more information from The Colleges of Law about our professional certificate programs.