All hail the Blockchain revolution! Really?
25 Aug 2016
Some say that Blockchain will be more disruptive than the Internet itself. Its protagonists claim that Blockchain has the potential to transform the existing Financial Services sector in fundamental ways, away from its current Byzantine-like system of intermediaries and onerous frictions and costs. Rather, what is expected to emerge from this distributed ledgers future is a near frictionless platform on which identity and title are secure, and exchange immediate and immutable.
Financial markets are no different to other markets in that a key tenet for any market transaction to be successful is that trust must prevail, e.g. I trust you have title to the asset/product/service being sold and you trust I can make acceptable payment, and together we both trust in the validity of the actual exchange mechanism itself. For its proponents, Blockchain is revolutionary because it removes all the restrictions and constraints of the analogue-like plumbing that characterises today's Financial Services sector by digitising the exchange process. Simply put, the vast infrastructures that have been decades in the making, can be cast aside by the Blockchain future.
In our conversation with David Zylberberg we explore how Blockchain might transform the Financial Services sector, examine user cases where Blockchain might provide the first significant wins, and then debate whether Blockchain really represents a revolution or is just an another evolutionary pathway in the ongoing development of the Financial Services sector?