If you read my blogs you’ll know that I see the Blockchain as boring and beautiful at the same time. It is boring because it creates a central purchasing ledger and it is beautiful because it puts millions of boring jobs at risk , freeing people up to go and do something more useful instead.
As disruptive technologies go, it is at the top of the list. But why is everyone so scared of it? I reckon most people see Blockchain as a threat – not because it is boring – but because they are. Face it, do you see Blockchain stealing your job? If you do- then you are doing a boring job! If you want to carry on doing a boring job then the chances are won’t be because the Blockchain will have outsourced your job to a microchip.
If you see the possibility of doing something less boring than validating transactions , then good for you. May I introduce you to the wonderful world of leisure, or at least of creative work where you are not doing something boring but using your magnificent human intelligence to make the world a better place.
You may think I am being facetious, but I’m not. I really do think that people are a lot less boring than their jobs would lead us to believe. Furthermore, if people allowed themselves to believe that, they would be the interesting people their imaginations have always told them they are.
If you don’t know how the Blockchain works, and how it’s likely to blow up all the boring jobs over the next two decades, you can read all kinds of interesting articles (like this one on my blog) and find out.
When you’ve finished this article go to https://henrytapper.com/blockchain-explained/ The URLs so easy you can type it into your browser even if you’re reading this on paper!
If you do know how the Blockchain works try this;- instead of worrying about it, start using it! It is not a human intelligence – it is an artificial intelligence – you can be as rude to it as you like – it will still be your friend!
I spoke with the big boss of an insurance company the other day, she was complaining that her unit costs were too high and she couldn’t make any money out of small pension pots. I told her to scrap all her processes and replace them with the Blockchain. She asked what that would mean for her organisation. I told her she’d be employing about 10% of the people and the other 90% would go and do something more interesting instead.
I told her she’d be able to manage small pension pots profitably.
She said she’d think about it. I hope she has second thoughts!
I like your enthusiasm for the blockchain, it certainly does and will have an increasing role in our financial futures.
BUT it’s main advantages are in realms away from regulatory and liability frameworks.
Ie, digital cash spending and non-earning savings YOU personally take full responsibility for, near zero cost vs using the banking system.
It doesn’t just disrupt banking, or reduce their costs. It removes their entire need to exist.
I could be paid in btc, and buy everything with BTC. Why do I need a bank anymore
The banks don’t want that, so they’ll want you to still pay them to do what you could do without them. They’ll just increase their profit margins while reducing operating costs.
As for regulated and liability work like pension provision, has anyone actually written out a system that uses blockchain, while reducing costs in labour?
I just can’t see where the savings are.
The blockchain in a system where reversibility is present will need checks and measures, it’ll essentially be any other database of information.
A blockchain with irreversible data will mean someone has to be responsible on behalf of the clients data, or, double check they’re not about to transfer all their wealth to the wrong place.
There are probably some savings to be had from blockchain, but not ones that couldn’t be slready had with a well administered database.
Blockchain seems to be popular now because in the hands of the end users it enables them freedom from monolithic financial institutions.
The only big financials that are interested are banks worried about becoming irrelevant by not embracing it and selling you their less secure and more costly version.
Did you get a Bitcoin wallet Henry? Did you have a play with it?
In using it you’ll appreciate why it’s so popular for payments, but at the same time it’ll have you wondering why it needs ANYONE else involved in your transactions any more.
That’s why I’m baffled. It’s disruptive, but absolutely.
The only reason we’ll still need anyone else involved will offset most of its benefits.
If I’m wrong I’m happy to be enlightened!
I think you’re too hung up on Bitcoin – the blockchain has moved on from there
The blockchain technology will be part of our life and all kind of business in a near future. This techomolgy, although it’s in an early stage, it’s been tested in many scopes (not only in criptocurrencies) due to the its descentralized nature and the way it manage transactions of all kind.
I beleave this year we will be hearing more and more about new businesses using this techonology.