“… Legal Torch represents a significant advancement in the legaltech landscape. Our collaboration with VAIOT has allowed us to contribute to finance and shape a solution that is designed to simplify legal complexities for both individuals and businesses alike. Harnessing the power of advanced AI, including natural language processing, Legal Torch opens up a novel avenue for service delivery and access” - Wayne Pisani, Head of Tax, Regulatory and Compliance at Grant Thornton
In our previous article, we introduced Legal Torch, VAIOT’s innovative LegalTech solution that integrates artificial intelligence (AI) and blockchain technology to transform the legal landscape. Today, we dive deeper into the possibilities of Legal Torch, exploring the business plan behind this solution, its market fit, scalability, and the long-term impact that it will have on both VAIOT and the legal industry.
Key takeaways:
- Legal Torch is set to launch in Malta by the end of 2024.
- Starting in the European Union, VAIOT is deploying Legal Torch, to Web 2 users and businesses (web3 users are welcome to utilize the solution as well), gradually introducing advanced Web3 functionalities to drive blockchain adoption in the legal domain.
- Legal Torch, among its multiple functionalities (Check the article), will offer the integration of VAIOT’s AI capabilities and Web3 features such as blockchain contracts , zk-Snarks Certificates, VAI Payback System and Decentralized Dispute Resolution System (DDRS).
- Starting in Malta as a testing ground, Legal Torch will expand across Europe and globally, adapting its business model to different markets. Legal Torch’s business model is designed to ensure long-term sustainability and scalability. Strategic vision and strong partnerships aim to make Legal Torch a transformative force in the legal industry worldwide.
- Malta’s supportive environment for technology and innovation makes an ideal launch market. The high population density and legal challenges create a strong demand for comprehensive legal support presenting an opportunity for Legal Torch to address various legal needs, including citizenship, residence, property related matters and civil contracts.
- Malta’s micro-businesses represent a significant target market, requiring affordable and comprehensive legal solutions. Legal Torch will assist with document drafting, business formation, securing funding and daily operations.
- Malta’s advanced digital infrastructure supports the introduction of innovative legal technologies including AI and blockchain framework.
- Legal Torch benefits from VAIOT’s established presence and regulatory compliance. Collaborations and partnerships with organizations like Grant Thornton and University of Malta enhance credibility and support for Legal Torch.
- Legal Torch’s sustainable business model will directly impact VAIOT’s growth offering a new revenue stream that combines pay-as-you-go and subscription based services to cater to diverse user needs.
Hours of work simplified
Legal Torch is strategically positioned to address the pressing needs of the legal market, offering a comprehensive suite of tools that streamline processes, enhance efficiency, and democratize access to legal support. By leveraging AI and blockchain, Legal Torch bridges the gap between traditional legal practices and the demands of the Legal Tech.
Integration of AI Legal Assistant
One of the key highlights of Legal Torch is the integration of our AI Legal Assistant, which helps individuals and businesses navigate legal processes by automating contracts, enabling digital signing and facilitating negotiations all while ensuring secure and AI-enhanced transactions.
With GTP-4 and machine learning, our AI Legal Assistant continuously improves its knowledge base and adapts to the evolving needs of our users. Since our last Beta test, we have significantly improved our AI legal assistant by correcting the responsiveness and bugs reported guaranteeing a seamless integration to Legal Torch’s functionalities.
Decentralized Dispute Resolution System (DDRS)
In addition to the core functionalities of Legal Torch, we have made significant efforts with our Decentralized Dispute Resolution System (DDRS). The DDRS leverages blockchain technology for fair, transparent, and efficient dispute resolution. It enables VAI token holders to participate as jurors, actively engaging and making decisions in disputes. By incorporating smart contracts and decentralized arbitration, the DDRS ensures that disputes are handled quickly, impartially, and at a lower cost compared to traditional dispute resolution methods. Whilst we are working now on building a fun and professional user experience for Jurors, we aim to implement this technology to Legal Torch once DDRS is community-tested as a separate organism which shall happen later this year.
Taking big steps
As we approach the official launch of Legal Torch, our development team is diligently working on connecting the front-end design with the robust back-end architecture. This final phase of integration will ensure that all the features and functionalities of the platform work smoothly, providing our users with an intuitive and practical platform.
At the moment we are testing prompts with the AI legal assistant and our research has determined our assistant is prepared for user inputs on legal issues. We will continue to iterate our functionalities till the product is released later this year to ensure a smooth user experience.
“Technology is the most important driver for change in the legal industry. It has grown exponentially, and is increasingly capable, pervasive and connected. Do we resist or embrace it?” — Richard Susskind
Why Launch in Malta?
Legal Torch, apart from offering a comprehensive solution that we believe will have a great adoption will directly impact VAIOT’s growth, becoming an even more elaborate project that offers solutions operating on the market with a reliable customer base, growing revenue stream and opportunity to scale up. With its innovative features, user-centric design and market needs we aim for Legal Torch to find product market fit that will significantly impact the future of our company.
As part of our business strategy, our research determined that Malta would be the best market to launch our product. Why so? As a country known for its progressive stance on technology and innovation, Malta provides a supportive environment for the development and refinement of our technologies, with a special emphasis on blockchain. Moreover, Malta’s thriving expat community and robust real estate market present a unique opportunity to test and validate Legal Torch’s capabilities in a diverse and dynamic setting.
Here we tell you more about why Malta is the right place to start our journey with Legal Torch:
1. Malta’s Growing Demand for Legal Support
Malta’s population has grown by 29% since 2012, with a significant influx of foreign nationals. The share of foreign nationals increased from 5.5% in 2012 to 25.3% in 2022, indicating a diverse and dynamic population (Malta National Statistics Office, 2023). This growing and diverse population presents a unique opportunity for Legal Torch to cater to the legal needs of individuals and businesses from various backgrounds, particularly in areas such as citizenship, residence, and property-related matters. Allowing us with the perfect sample to understand different markets, expectations and needs that will support our global expansion.
Furthermore Malta’s demographics indicate that 27% are young people, a higher percentage than other European countries. More young people could mean more adaptation or tech solutions for traditional services, especially in the legal industry. Despite this, the older population can also benefit from Legal Torch considering an increased demand of support during inheritance processes and Power of Attorney contract creation.
2. Leveraging Malta’s Thriving Real Estate
Malta’s real estate market is thriving, with a high demand for property-related legal services. In 2023, the number of international travelers visiting Here is a revised text with the correct numbers: Malta reached nearly 3.2 million tourists, with 85.4% of guest nights spent in rented accommodation establishments. The increasing inflow of tourists and new residents has also been reflected in the number of new dwellings approved in Malta, with approximately 1,444 in Q1 2024 alone, a 1.4% year-on-year increase (National Statistics Office of Malta, 2023).
This robust market presents a vast opportunity for Legal Torch to streamline property-related legal services, such as:
- Pre-sale agreements.
- Apartment buy-sell contracts.
- Both short- and long- term residential lease agreements.
- Construction contracts or permits.
- Condominium rules.
- Housing maintenance contracts.
Equally important are dispute resolution services, which are crucial in a dynamic market where conflicts may arise over property agreements, tenant-landlord issues, and construction disputes. By offering comprehensive support in these areas, Legal Torch can address the diverse legal needs of Malta’s growing and evolving population.
3. Addressing Legal Needs of Malta’s Population
Malta has the highest population density in the European Union, with approximately 1,700 people per square kilometer, which is 15 times higher than the EU average. This high congestion leads to increased human interactions, which naturally result in a greater number of legal challenges. In 2023, around 45% of Maltese households reported issues such as pollution, grime, environmental concerns, noise from neighbors or the street, and crime, violence, or vandalism, according to the Malta National Statistics Office, (2023).
These conditions highlight the need for comprehensive legal support in areas like civil contracts, formal complaints and dispute resolutions.
Legal Torch can play a crucial role in addressing these pervasive issues, ensuring that residents have access to the necessary legal resources to navigate their densely populated environment.
4. Serving Malta’s Micro-Businesses
According to the Malta Chamber of Commerce, Enterprise and Industry, (2023), micro-businesses (employing up to 9 employees) amounted to over 136,000 units in Malta, with 3,297 units newly registered that year. Notably, 57% of registered business units are sole owners or partnerships, and 75% are family owned. These entities represent the perfect target market for Legal Torch. Too small to engage large law firms, yet possessing broad and varied legal needs, these businesses require assistance with document drafting and analysis for business formation, securing funding, onboarding investors, and daily operations — including employment contracts, non-disclosure agreements, intellectual property protection, trademarks, patents, and business contracts.
Additionally, offering legal consultations supported by AI technology ensures cost-effective and value-adding professional advice. Efficient dispute resolution, whether business or administrative, is also crucial for these enterprises.
Launching in Malta allows Legal Torch to tap into a market that requires comprehensive, affordable and technologically advanced legal solutions, positioning the company as a vital partner in the growth and success of Malta’s micro businesses.
5. Malta’s Digital Hub- The Optimal Environment for Legal Torch
Malta is one of the most digitized economies in the world, with 100% coverage for Fixed Very High-Capacity Network and one of just two 100% 5G coverage, It ranks first in the EU for big data adoption among businesses with at least 10 employees, fourth in digital public services for businesses, and sixth in SMEs with at least a basic level of digital intensity, according to the Digital Economy and Society Index, (2022).
This highly digitalized environment is optimal for introducing advanced solutions to address the real-life needs of small businesses. Legal Torch can leverage technologies such as machine learning, generative AI, and decentralized online technologies to offer secure creation, transfer, storage, and validation of records. By launching in Malta, Legal Torch can provide small businesses with the digital tools they need to thrive, ensuring seamless, efficient, and secure legal processes tailored to a tech-savvy market.
6. Malta as An Ideal Testing Ground
As of 2024, the market size for the legal activities industry in Malta is estimated at approximately 127M EUR, with around 850 businesses operating within the sector. Malta also has one of the highest numbers of lawyers per capita among EU countries, with approximately 1 lawyer per 200 inhabitants (IBIS World, 2024).
This highly saturated and competitive market presents an excellent test field for Legal Torch’s services. Malta’s pro-tech environment and residents’ familiarity with advanced online solutions, suggest a readiness to embrace technological advancements. Launching in Malta allows Legal Torch to refine its offerings in a market that values innovation and efficiency, ensuring the services meet the high standards of a well-established legal community. A competitive market as such would be open to digital transformation and tech adoption, giving Legal Torch space to grow and deploy effectively.
7. Supportive Environment for AI and Blockchain
Malta has successfully established itself as a top hub for innovative technologies, with a robust digital ecosystem founded on AI and distributed ledger technology (DLT). These technologies are extensively applied across various industries, including financial services, insurance, iGaming, cybersecurity, healthcare, and life sciences. LegalTorch aims to add LegalTech to this impressive list, leveraging Malta’s tech-savvy environment. The country, has demonstrated through their Innovative Technology Arrangements and Services act as well as their Virtual Financial Assets Act a direct support to visionaries and tech entrepreneurs who can directly benefit from the services Lagal Torch will offer.
Maltais on a mission to become the ‘Ultimate AI Launchpad’ by 2030. To achieve this, the Maltese Government has developed the National AI Strategy, designed to give Malta a strategic competitive advantage in the global economy as a leader in AI. This strategy focuses on boosting investment, innovation, and adoption. Projects like LegalTorch are highly welcomed by the Maltese Government, as they align perfectly with the National AI Strategy. This supportive environment will allow LegalTorch to test, improve, and grow its services effectively.
8. VAIOT’s Existing Presence and Partnerships
LegalTorch, as a product of VAIOT, benefits greatly from VAIOT’s established presence within Malta’s thriving tech ecosystem.
VAIOT, the issuer of VAI token, is notably the first Virtual Financial Asset (VFA) regulated under Maltese law and is audited by the Malta Financial Services Authority. This solid regulatory framework provides an additional layer of trust and credibility. VAIOT’s compliance with all applicable regulations and its collaborations with renowned organizations like Grant Thornton and the University of Malta provide an extra layer of confidence in the quality, integrity, and sustainability of Legal Torch.
“The synergy between Grant Thornton and VAIOT epitomizes our collective vision for the evolution of legal technology. Looking ahead, we are optimistic that Legal Torch will redefine industry standards for legaltech solutions, enhancing their efficiency, intuitiveness, and reach. The future of legal technology is bright, and we are proud to be a part of this transformative journey.”
- Wayne Pisani, Head of Tax, Regulatory and Compliance at Grant Thornton
By leveraging our deep understanding of the Maltese market and its established collaborations with regulatory firms and fintech hubs, Legal Torch is well-positioned to demonstrate its real-world impact. This strategic choice not only allows us to fine-tune our platform but also lays the foundation for a successful expansion into the broader European market, where many of our potential customers have cross-border legal needs. As a Maltese company, VAIOT is uniquely equipped to navigate regulations and deliver a compliant, secure, and efficient solution that transforms the way legal services are accessed and delivered.
From Europe to the World
Many potential customers of Legal Torch have operations spanning multiple European countries, and as a Maltese company, we are uniquely positioned to cater to their cross-border legal needs. Our deep understanding of the Maltese market, coupled with our commitment to innovation and compliance, sets the stage for a successful expansion into the broader European market. While Malta serves as the ideal starting point for Legal Torch, our vision extends far beyond its shores. With a strong foundation in the Maltese market, where we have established various key collaborations, we aim to expand Legal Torch’s reach across Europe and the world.
As we expand beyond Malta, our business model will adapt to the unique characteristics of each market, ensuring that Legal Torch remains a viable and sustainable solution for legal services across borders.
Pawel Andruszkiewicz, VAIOT’s COO, says: “Our plan is simple: begin in a supportive market to build a solid foundation, advance into more competitive markets to scale our operations and ultimately leverage our strong partnerships, strong user engagement, community feedback and strategic vision to expand globally.”
Our vision extends far beyond Europe. With our trustworthiness confirmed by the VFA Issuer regulatory status and verified by Certik we are prepared to pivot towards the right products that will significantly contribute to the legal industry. Collaborating with consultancy giant Grant Thornton, we aim to develop 50–70 contracts by the end of the year, further enhancing our credibility and reach.
By harnessing the strengths of our strategic vision and solid partnerships, LegalTorch is not only positioned for success in Europe but is also set to become a transformative force in the legal services sector worldwide.
Ensuring Sustainability: Legal Torch’s Business Model
Legal Torch’s business model is designed to ensure long-term sustainability and scalability. By offering a combination of pay-as-you-go and subscription-based services, we cater to the diverse needs of our users while generating stable revenue streams. This is promising for VAIOT as we position ourselves not only as one of the most relevant and secure projects in 2024 (Check the article) but also as an established company that strategically designs products with real-life applications, putting the needs of the user first. VAIOT is becoming the leader in legal tech solutions through its innovative ecosystem of technologies, which will also be an integral part of Legal Torch.
Legal Torch, among its multiple functionalities (Check the article), will offer the integration of VAIOT AI capabilities and Web 3 technologies such as blockchain contracts, zk-Snarks Certificates, VAI Payback System and Dispute Dispute Resolution System (DDRS) to onboard Web2 users into Web3 space, driving widespread blockchain adoption in the legal domain.
The pay-as-you-go model allows individuals and businesses to access specific legal tools on demand, providing flexibility and cost-effectiveness. On the other hand, the subscription model offers a comprehensive suite of legal tools and resources, enabling users to streamline their legal processes and benefit from ongoing support. The flexibility provided by the diverse plans will allow us to reach more customers whilst keeping our mission of democratizing legal tools to make them accessible and easy to use for everyone.
Another Milestone in our Roadmap
Are services like Legal Torch who play with the intersection between web3 technology and AI the future of the legal industry? Data shows that it can definitely have a huge impact on the way this sector is transformed.
“At Grant Thornton we celebrate fresh thinking and diverse perspectives. Legal Torch represents a significant advancement in the legaltech landscape. Our collaboration with VAIOT has allowed us to contribute to finance and shape a solution that is designed to simplify legal complexities for both individuals and businesses alike. Harnessing the power of advanced AI, including natural language processing, Legal Torch opens up a novel avenue for service delivery and access”
- Wayne Pisani, Head of Tax, Regulatory and Compliance at Grant Thornton
At this point, we know that AI is here to stay and that Legal Torch and its mother company VAIOT are leading innovative solutions that will meet existing needs and growing demand. To illustrate the transformative potential of Legal Torch, we will explore in the next articles a few examples of how it can significantly improve processes in the legal industry.
The launch of Legal Torch marks a significant milestone in the evolution of legal services. By harnessing the power of AI and blockchain, we are transforming the way individuals and businesses interact with the legal system, making it more accessible, efficient, and user-friendly.
Join us on this exhilarating journey as we redefine the future of legal services. Stay tuned for more updates on Legal Torch’s development, upcoming features, and expansion plans.
Reference list
Malta Chamber. (n.d.). Home. [online] Available at: https://www.maltachamber.org.mt/ [Accessed 17 June 2023].
National Statistics Office Malta. (n.d.). National Statistics Office. [online] Available at: https://nso.gov.mt/ [Accessed 17 June 2023].
European Commission. (n.d.). Digital Economy and Society Index (DESI) — Malta. [online] Available at: https://digital-strategy.ec.europa.eu/en/policies/desi-malta [Accessed 17 June 2022].
IBISWorld. (n.d.). Accounting and Auditing in Malta. [online] Available at: https://www.ibisworld.com/malta/industry/accounting-auditing/200284/#Methodology [Accessed 17 June 2024].
About VAIOT
VAIOT offers a portfolio of blockchain-based AI Assistants and on-chain Intelligent Contracts for businesses and consumers to provide automated services and transactions. VAIOT- AI and Blockchain for Legal Innovation.
Read our AI Legal Assistant Lightpaper here.
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