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Finance – Get Ready: Blockchain Will Transform the Legal Industry

Andries Verschelden 

Originally published on Armanino
13 June 2019

What if someone told you that a new technology would significantly impact every law firm within the next 10 years—and would influence how your firm gets paid, the types of services it offers, and everything in between?

Consider this a wake-up call for a future that looks very different than today, thanks to the technology called blockchain. While still a nascent trend, blockchain is already proving to be a transformational force, changing how people and businesses around the world transact with each other by enhancing the trust, accountability, efficiency, and effectiveness of those transactions.

Don’t assume that blockchain is only for cryptocurrency enthusiasts and specialists. It’s poised to make rapid inroads into all types of industries across many different use cases beyond cryptocurrency. As such, clients will need expertise and guidance for the proper legal frameworks for using blockchain. Law firms that don’t want to get left behind need to pay attention, and start gaining experience and planning their blockchain strategies now.

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An abstract digital structure showing the concept of blockchain technology with hexadecimal hash data inside each block. This image represents a conceptual design in the domain of IT, cyberspace, cyber security, cryptocurrency or similar industry sectors. The image is a made up 3D concept render.

Defining blockchain simply

Let’s start with what blockchain is not. It is not software that you can buy from a vendor nor is it “owned” by any one company. No one group or country controls it, and anyone, anywhere in the world can use it. While these characteristics can make blockchain seem complex and nebulous, when you think about it, the Internet has the very same characteristics. We don’t have to understand the technical details of the Internet to know it has tremendous impact on our lives and livelihoods.

So, what is blockchain? It’s open source technology that enables the creation and management of a global, autonomous network where information is secured in an immutable and transparent ledger. There are already thousands of networks in use, both publicly and privately. What’s special about a blockchain network is that it gives everyone who uses it access to the same information in a way that ensures the information can be trusted.

Changing the legal industry

Because it’s somewhat early days in the blockchain evolution, innovators are still identifying all the ways it can be used. Perhaps the most common application right now is for peer-to-peer transactions that transfer digital value between two parties in a trusted way without a third party involved.

However, blockchain is also being envisioned and tested to make supply chains more efficient, give artists greater control over digital ownership rights, streamline real estate transactions, manage Internet of Things networks and much more.

Because it changes the way people and businesses transact and communicate with each other, blockchain will begin to impact and evolve the way legal services such as contracts, escrow account management, transactions and much more are handled. Here are some ways blockchain is already poised to reshape how law firms work:

  • Smart contracts: Instead of being traditional, static documents (whether digital or paper-based), contracts will evolve to be programmatic components of a blockchain network, where the terms and conditions of the contract are automatically applied.
  • Automated securities settlement: Many of the routine change of ownership transactions handled today by law firms will be automated within blockchain networks in the future, such as transferring real estate or ownership shares in a business. Compliance and restrictions all happen automatically, as they are built into the blockchain protocol code.
  • Payments via digital assets: As clients adapt digital assets such as cryptocurrency, it will be increasingly important to be able to accept these types of payments.
  • Escrow accounts: Smart contracts can automatically release funds into a digital wallet at the completion of some pre-determined criteria, eliminating the need for escrow accounts in many transactions.

Establishing an essential role in the blockchain evolution

For forward-thinking law firms that have embraced the changes on the horizon with blockchain, it’s already opening up new practice areas and service opportunities, which can eventually replace those that will shrink and go away. Sharp legal minds are required right now to help organizations understand the appropriate legal framework for using various blockchain networks for different use cases. There is much to do to move from physical assets to digital ones, and the legal industry must be a vital part of the effort.

Lawyers who understand the concept of smart contracts will be in high demand as more businesses begin moving to blockchain. By combining understanding of how blockchain networks function with deep legal knowledge, firms can create blockchain practices that provide legal guidance to organizations of all kinds as they both create and participate in blockchain networks.

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Taking the first step

As the world evolves towards transferring assets and information digitally using blockchain, your firm must be ready to both adopt blockchain and provide legal counsel on how your clients can adopt it as well. One way to ease into the world of blockchain is to begin accepting digital assets as payment for legal services rendered. Unless you already have blockchain expertise on staff, turning to a trusted service provider can expedite your implementation while helping your firm avoid missteps.

In any case, you need to begin understanding blockchain now. If clients aren’t already asking about it, they will be soon, which means you need to start establishing blockchain expertise before your competitors beat you to it.

For more information contact Andries Verschelden or Terri Oppelt

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Profile – McCann Asset Management

McCann Asset Management

Martin McCann is passionate about retirement. During his 25 years as a financial planner, he has seen clients, friends, and family members experience their golden years in very different ways. The people who plan their retirements in advance tend to enjoy active, fulfilling post-career lives. Those who did not take the time to plan end up struggling financially, and fearing overpriced long term care expenses. Martin realized how important it is to help others successfully invest for their futures, which is why his professional goal is to deliver long term guaranteed streams of retirement income for all of his clients. 

Martin began his financial planning career in Lodi, California in 1994. Only nine months into his career at American Express (previously IDS Financial Services and currently Ameriprise Advisors), he was promoted to Training Manager and relocated to Fresno, California where he continued to excel in the industry. Martin was promoted again only three years into his career, but this time to Field Vice President. Shortly thereafter, Martin transitioned to Prudential, where he was ranked the #1 manager in the world. 

Full disclosure, I have known Martin professionally and personally since his time with Prudential. I have always considered him kind and very knowledgeable about his industry, but I did not realize how accomplished he was until we spoke for this article. I worked with Martin towards the beginning of his 18 year career with One America, where he accumulated most of his certifications: LUTC, Chartered Financial Consultant, and Certified Financial Planner, to name a few. His clients always spoke well of him, and I have entrusted him with some of my own retirement needs. 

In November, 2018 Martin founded McCann Asset Management, where he is currently the president and an acting financial advisor. He attributes his passion for retirement to his personal and professional experiences with the stock market crashes in the first decade of this century. The kind of instability he witnessed made him want to help others find long term financial security for themselves and their loved ones. Martin helps his clients determine how much money they need in order to support their lifestyle and long term care needs for themselves, their relatives, and their dependents after retirement. 

McCann Asset Management specializes in small businesses, ideally between 10 and 300 employees, although they will happily serve businesses of any size. The goal is to help employees plan for their retirement while also protecting the business owner from retirement lawsuits. Martin developed his own retirement software to best assess retirement needs and guarantee them for life. He understands the complexities of providing these services for his clients and your employees, and he has success in defending employer’s rights. Martin was recently an expert witness regarding 401ks and won 21/21 accusations in the class action lawsuit. This success got Martin featured in various law journals throughout the country.

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Innovation – Emerging Agribusiness Technologies

Originally Published in Oct-Dec 2019 Quarterly

Sheri McClure

Good business leaders are always trying to do the best for their stakeholders, their employees, and their customers; but they don’t always have the time to research new ways to make their businesses more efficient and sustainable. Luckily, talking to experts is what we do best. We want to share three emerging technologies that can help you streamline your agribusiness in remarkable and eco friendly new ways.

Basil and lettuce being grown hydroponically in a large greenhouse. Water usage is only 1% of regular farming!

Vertical Farming

Traditional farms require mass quantities of acreage and are subject to issues like unseasonable weather, fallow land, and pests. With increasingly unpredictable weather, a growing aversion to pesticides, and an ever increasing population to feed, agricultural areas are feeling additional pressure. Vertical farms have become one way farmers can address these issues.  

It may be helpful to think of vertical farming as the technologically-advanced urban cousin to traditional greenhouses. Of course, each company offers systems with different features, but the overall goal is to utilize vertical space in a safe, controlled environment that greatly lessens each farm’s carbon footprint. Vertical farms can also be housed in old warehouses or other unused buildings, which could help boost the economy of underutilized urban areas and bring fresh, local produce to these communities.

I spoke at length with Niko Kurumaa, the International Sales Manager for Netled (pronounced net led) about Vera, their closed vertical farming solution. Netled has its roots in tomato farming, but was developed as a daughter to their greenhouse business after 20 years in industry. Their primary crops are leafy greens, like basil and lettuce, and they are expanding into the cannabis industry. Netled were pioneers in LED grow lights back in 2007, and have continued to push the technology of indoor agriculture with Vera. 

In general, vertical farms cut the farm’s carbon footprint and transportation costs. They even allow farmers to utilize more layers of soil since most of the good soil has already been used. Vertical farms can also be housed in old buildings or even skyscrapers–urban spaces where traditional agriculture would not be possible on the same scale. 

So what exactly is Vera and what prompted Netled’s recent 11 million dollar contract with EU company Astwood Infrastructure? Niko began by explaining Vera’s automation benefits. “Vera uses 95% less water than traditional farming,” he said. This decrease is primarily attributed to the water circulation system. The plants are watered, but when they give up additional moisture through natural processes, the AC system captures it, condenses it, and reuses it. The Netled engineering team has proven that Vera circulates 98% of the water used, which makes this type of farming more sustainable and aids in doubling average crop production. Recycling water in these closed environments also keeps chemicals out of the soil, which is helpful because the chemicals can affect future crops and contaminate drinking water.

But I believe Netled’s success is about more than a great product. “We see ourselves as a technical partner, not just a technical supplier,” Niko explained. The company has their own testing facility in Finland, where they are based. (Although they are actively looking for partners in the US and an operator in Indiana.) Netled is constantly improving the product and will test their customer’s crop in their own facilities to make sure everything is working optimally. In addition, Vera comes with a 10 year maintenance agreement, and their software connects all of the Netled farms globally to their tech. In other words, whether you’re in Finland or California, their team can help ensure that your vertical farm is functional and efficient. 

Management Software & Services

Agribusiness consists of a lot of moving parts. It is important to have reliable methods for tracking things like production, shipping, sales, and compliance. There are companies like AgriCare, located in the Central Valley, that manage some or all of these aspects for businesses. But there is also a growing list of vertical software technology that you can manage with or without additional support to keep your business organized. 

One of these resources is Chasqui (pronounced cha-ski), a platform managed by Ciclo. I met Oscar Aguilera, Co-Founder and VP of growth at Ciclo, at the NCIA’s Cannabis Business Summit and Expo in July 2019. I was impressed by their services, and was even more excited to learn that their product can be customized for any type of agribusiness. 

Ciclo places a huge emphasis on meeting their customers’ needs. In the legal cannabis industry, there is an enormous need to remain compliant despite everchanging and dense guidelines. Their platform, Chasqui, helps to keep growers and distributors compliant. But the software can also be customized for more traditional crops and their agricultural needs. 

For customers who would like additional support, Ciclo is there to provide managed services for Chasqui customers. You can use the software straight out of the box, but Ciclo wants to ensure that your and your businesses needs are reflected in your software customization and support. They begin by speaking with new customers over the phone. Their representatives want to understand your business, including its challenges, workflow, and processes, so you can customize the software to work best for you. This preliminary call is followed by hands on and face-to-face site visits, so you can feel comfortable with the product and its uses. They even have representatives who are fluent in both English and Spanish, so everyone involved in your business can have their voice heard. 

Management software like Chasqui makes it easier to keep tabs on all aspects of your business from anywhere at any time. It is important to find the best product for your business needs, but finding one that marries customized software and face-to-face customer service sounds like a promising start.

Alternative Energy

Notice that this section is not called Solar Energy. Solar can be a great way to go, and there are great companies like Sunworks Solar Power in Roseville, Wildwood Pools and Solar in Fresno, and SPURR in Concord. But these days everyone knows at least something about solar energy. What you may not know is that you can take solar on or off the grid. The companies listed above can help customers learn to bank their own solar energy and use it when they need it most instead of selling it back to large energy corporations. And Dr. Micro Grid consultants can help you get off the grid entirely. But solar is not the only option.

We met the Executive Vice President and Senior Account Manager of Ice Energy at the Southern California Facilities Expo back in May, and we were fascinated by their innovative solution to the high cost of cooling commercial spaces. Instead of using a conventional HVAC unit, use ice. In many ways, their Ice Bear and Thermal Bear thermal storage AC units are the opposite of solar energy. When ambient temperatures and energy costs are lower, these units make ice. When temperatures and energy costs are higher, they use these huge chunks of ice to cool the coils that in turn cool your space. 

If you are currently envisioning a large block of ice in a big bucket a la Looney Toons, think again. These are slick, HVAC sized units that easily replace traditional units. Ice Energy claims their customers can save up to 40% on their overall energy costs, and up to 95% on their peak energy usage. They also have a pretty impressive list of big name customers in agriculture, retail, and industrial, including New Belgium Brewery, Staples, AT&T, Lithia Chevrolet, and Panda Express.

Each business is unique and requires different supporting services. We love speaking with experts about what they do, what they offer, and what they know. And we are always happy to pass along that information to our readers. Hopefully some of these new innovations piqued your professional interest and will help you learn new ways to run your business more efficiently and sustainably.