Integrating Blockchain for Transparency in Bail Transactions: Prospects and Challenges

Technology is always moving and evolving to improve how we conduct business. From this evolution, there are positives and negatives that have to be navigated. The bail bond industry is beginning to see the benefits and pitfalls of utilizing blockchain technology.

Blockchain technology is the method of recording information that deters and/or makes it impossible for the system to be hacked, manipulated or changed. Once information is input into this system, it is then recorded across a network of multiple computers that ensures that the information can not be altered without the use of multistep verification and traceable transactions. The blockchain technology assists the bail bond agencies with contract administration and transparency of communication between agency and defendant.

Blockchain Challenges

The challenge with integrating blockchain technology into the bail bond industry is going to be the legislative changes on a state level. Each state has legal reform in regards to how bail services are conducted. These reforms are individualized to each state across the nation. This can create a challenge for those bail bondsmen that service several states. Agencies will need to stay informed on all changes in order to stay within the ramifications of the law, while still providing their clients with the necessary information on the bail process. The blockchain technology is a tool that will assist the bail bondsman in attaining the information that is needed from the defendant and keep within the letter of the law.

It is believed by some that the traditional bondsman may quickly become a thing of the past with this new technology and how information is gathered. But despite those challenges, bondsmen have the opportunity to adjust and redefine their roles in the legal system. While once thought to only be a person’s “get out of jail” card, the bondsman can now transition themselves to a role of monitoring defendants, much like a probation officer. This adaptation can ensure the survival of the industry and withstand the legal reforms on a state level.

Blockchain Prospects

As the bail bond industry begins to integrate blockchain technology into their business practices, the transparency and security in the bail bond process is drastically improving. This technology assists the bail bondsman to create records of transactions and contractual agreements. This allows both parties to have a clear understanding of the terms and conditions of the bail bond.

Bail bond agencies are using blockchain-driven platforms to also capture and record communications between bondman and defendant, as well as collect payments. These platforms create a manuscript of instant messages, video conferences, automated notifications and all payments that are received. Since these platforms are impenetrable and have a lower risk of being hacked or altered, they become a reliable record to submit to the court during the bail process.

Innovations in technology change almost daily. The promise of new and secure business practices are evolving and being implemented at every turn. It is necessary to adapt to these changes in order to be successful and thrive in an ever changing industry.