Lawyers and VAIOT: Perfecting DeLaw for Secure Legal Support
Lawyers Piotr Cedro, co-owner of KNS Legal and Silvia Calls CEO of Abogados Fintech, showed us how everything will change for law professionals with DeLaw and AI.
Key Takeaways
- Decentralized Law (DeLaw) is gaining traction as blockchain technology becomes more regulated and integrated into legal and business operations, with the global blockchain market expected to grow at a CAGR of 85.9% from 2022 to 2030.
- Legal experts like Silvia Calls and Piotr Cedro see DeLaw as a solution to inefficiencies in traditional legal systems, particularly for international business disputes, offering faster resolution times and cost-effectiveness.
- The European Union’s Markets in Crypto-Assets (MiCA) regulation and other regulatory frameworks are evolving to support the integration of blockchain technology in legal and financial sectors.
- VAIOT is leading the DeLaw movement by combining AI and blockchain technologies to create accessible, efficient legal tools like the AI-powered Legal Torch and Decentralized Dispute Resolution System (DDRS).
- The future of law is moving towards a more globalized, efficient, and technologically integrated approach, with DeLaw complementing rather than replacing traditional legal systems.
Legal Technology: From Skepticism to Regulated Innovation
The world of web3 and blockchain-based projects has long been met with a mixture of fascination and distrust. For many, the decentralized nature of these technologies conjures images of a digital Wild West, rife with potential pitfalls and lacking proper oversight.
This skepticism has been a significant barrier to widespread adoption, particularly in industries as traditional and regulation-heavy as law. However, Silvia Calls, CEO of Abogados Fintech and a seasoned lawyer with 15 years of experience in the field offers a different perspective. She argues that as decentralized technology becomes increasingly regulated, its utility and relevance are growing, particularly in finance and business operations.
“The market value regulation in Spain, which is also a European regulation, has already acknowledged DLT (Distributed ledger technologies) type of operations,” Silvia Calls explains.
“If you do settlements on accountability through DLT, this can be acknowledged as a normal settlement. This is a big step.”
Indeed, the numbers support Call’s’ optimism. According to a report by Grand View Research, the global blockchain technology market size was valued at USD 5.92 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 85.9% from 2022 to 2030. This growth is largely attributed to increasing venture capital funding and investments in blockchain technology (Grand View Research, 2021).
The regulatory landscape is evolving to keep pace. The European Union’s Markets in Crypto-Assets (MiCA) regulation, set to come into full effect by 2024, aims to provide a comprehensive framework for crypto assets. As Silvia Calls notes,
“Regulators are already providing the forms for companies to get the license to act as crypto asset managers. They can trade and issue these types of crypto assets.”
This regulatory progress is opening doors for innovative applications of blockchain technology. Silvia Calls highlight one particularly intriguing development that can potentially impact businesses:
“You can establish in the bylaws that the company would be tokenized. You’ve got some type of shares, and those shares can be tokenized, which is a big step.”
These advancements in regulation and application are paving the way for what Lawyers and VAIOT understand as “Decentralized Law” — a new paradigm where blockchain technology and smart contracts play a central role in business operations and finance.
As we stand at this intersection of technology and law, it’s clear that the landscape is shifting. The question now is not whether decentralized technologies will impact the legal industry, but how profoundly they will reshape it. And as companies like VAIOT step into this space with innovative solutions, we may be witnessing the dawn of a new era in legal technology.
Defining DeLaw to shape the future
As businesses increasingly operate in a global, digital marketplace, the need for efficient and effective dispute resolution has never been more pressing. Piotr Cedro, a Polish attorney specialized in dispute resolution and Co-owner of KNS Legal, sheds light on this growing challenge and the potential of Decentralized Law (DeLaw) to address it.
“The most common disputes are the ones between entrepreneurs or business to business,” Piotr Cedro explains.
“We have so many issues nowadays with this complicated procedure to deal with business matters, and it’s not time effective, it’s not effective at all.”
Indeed, the inefficiency of traditional legal systems in resolving business disputes is well-documented. The new economic reality holds a large number of small international claims for a few thousand dollars in cases such as a software development contract, a remote team that conducted a crowdfunding campaign but did not deliver what was promised, or an online fraud (Nappert and Ast, 2020).
Decentralized justice platforms act as cryptoeconomic mechanisms to coordinate the supply and demand of resolution services.(Nappert and Ast, 2020).
DeLaw, as Piotr Cedro describes it, offers a potential solution to these challenges.
“Traditional legal systems consist of hierarchy, and they’re centralized,” he notes. “We have in most systems one court that deals with all matters. What I would like to see changed is a decentralized system that allows us to have different courts for different matters.”
This concept of specialized, decentralized courts aligns with emerging trends in alternative dispute resolution. For instance, the International Chamber of Commerce (ICC) reported a record 890 new arbitration cases in 2023, the third highest number in history, demonstrating the growing preference for specialized dispute resolution mechanisms in international business (Morgan et al. 2024).
In our recent interview with Piotr Cedro, he emphasizes that DeLaw is not about creating anarchy or removing all oversight. Rather, it’s about creating more efficient, tailored systems for dispute resolution. “We have to have at least two parties that will agree that this court, this DeLaw resolution system, will deal with our matter,” he explains.
DeLaw is more than Decentralised Justice.
The potential impact of such a system is significant. The European Parliament has discussed the implications of blockchain and smart contracts in various resolutions and studies. For instance, the European Parliament’s resolution on blockchain and distributed ledger technologies in 2018 highlighted the need for an in-depth assessment of the legal implications of these technologies, including their potential to enhance transparency and efficiency in legal processes (Bomprezzi, 2021).
Although web3 technologies, such as blockchain, are still novel and challenging for many business owners and entrepreneurs to comprehend, the current trend favors the adoption of artificial intelligence (AI), particularly after the emergence of generative AI. However, this raises the question of how individuals can best leverage the benefits of both AI and blockchain technologies.
VAIOT’s ecosystem which combines web2 products such as Legal Torch for AI-powered contract management and web3 solutions such as Decentralised Dispute Resolution for arbitration, is the perfect example of how to merge the 2 most promising technological developments of the last decade and make it accessible for everyone.
As Piotr Cedro puts it,
“The main difference is that we can have those specific, very content-oriented DeLaw resolution systems.”
This specificity and efficiency could be game-changing for businesses, particularly in industries where speed and specialized knowledge are crucial.
The advent of DeLaw represents a significant shift in how we approach business operations. By leveraging technology to create more efficient, specialized mechanisms, DeLaw has the potential to save businesses time and money while ensuring fair outcomes. As more companies and legal professionals embrace these innovations, we may be witnessing the beginning of a new era in business law.
The Future of Law: Efficiency, Globalization, and Technological Integration
As we look toward the future of legal services, the significance of DeLaw becomes increasingly apparent. Piotr Cedro emphasizes the pressing need for efficiency in dispute resolution:
“We cannot wait weeks, months, or even years for a trial to finish, to have this judgment, to go to a different court, to have this ruling enforced. With a decentralized system, we can decide in a matter of days, maybe hours.”
The evolution of DeLaw is likely to be supported by shifting policies and attitudes. In our last interview, Silvia Calls explained:
“It seems that in the last few years, governments are just keeping quite aligned with the new regulation, with the new technology, which is positive.”
She foresees a future where “banks will have their crypto ATM” and where new types of businesses based on blockchain technology, such as NFTs, will flourish.
However, it’s important to note that the rise of DeLaw doesn’t mean the end of traditional legal systems. Instead, as Piotr Cedro suggests, it’s about creating a more flexible, global approach to law:
“ We don’t have our own matters. We don’t have our country’s matters. We have global matters.”
Whilst the future is already here and things are moving drastically with new tech coming every day, VAIOT stands for VAIOT strong. By combining the efficiency of AI, the transparency of blockchain, and the expertise of human professionals, VAIOT is paving the way for a future where legal services are more accessible, faster, and more cost-effective.
As Piotr Cedro puts it, “I want to see the future bright,” and with innovations like those offered by VAIOT, that bright future seems increasingly within reach.
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