Piper Alderman has become the “first legal firm in Australia to execute a blockchain-based payment guarantee” in a commercial contract, the company announced today.
Michael Bacina, partner in Piper Alderman, on the announcement: “The transformative nature of distributed ledger technology is only just beginning, and I’m thrilled to be a small part of helping to modernise and improve legal practice.”
Bacina claimed that “paper-based payment guarantees have always suffered from inefficiency and risk.”
“The Lygon platform, with the support of major banks and IBM blockchain technology, should help Piper Alderman and our clients enjoy greater efficiency and security over guarantees,” he said.
Justin Amos, Lygon CEO, said Piper Alderman’s use of Lygon platform “was a watershed moment for the legal services industry,” and offers “major advantages for a profession heavily reliant on paper-based guarantees.”
Amos said Lygon created “the first digital bank guarantee in the world, and it was the first time blockchain had been used in the Australian banking sector in a live, real-world application.”
According to Amos, “Lygon has rapidly expanded its reach and services to other sectors in Australia to meet the demand for our platform.”
“Our partnership with Piper Alderman has executed the first payment guarantee to be used commercially in the legal services industry, and it is also the first time blockchain has been used commercially by this industry too,” said Amos.
“The rollout of a payment guarantee with Piper Alderman demonstrates how applicable Lygon’s core technology is—and it’s exciting to think that we have only just begun exploring how widely it can be used by the legal services profession.”
Amos said the ability to reduce the risk of fraud and handling errors “is a major advantage to Lygon, particularly given the heightened focus on digital security for businesses of all sizes and scale these days.”
The legal profession, according to him, “is responsible for generating and stockpiling more physical, paper documents than perhaps any other industry, causing significant costs, risks, and delays for all parties involved.”
“Our digital instruments have exactly the same legal holding as former paper-based guarantees, but are paperless, transparent, accessible, and standardised, removing inefficiencies, costs, and risks associated with a paper-based system”, Amos concluded.