Bitcoin Global News (BGN)
August 01, 2018 -- ADVFN Crypto NewsWire -- As is said in Michael
Casey and Paul Cigna’s, “The Truth Machine,” and in
Satoshi Nakamoto’s original post on Bitcoin in
2013, trust is what we lack in our traditional
currencies.
With this in mind, from the
inception of the space, it can reliably be said that the success of
the Blockchain has at least largely hinged on the idea that it can
give us back that trust.
Furthermore, it can also be
extrapolated that the first iteration of the Bitcoin network was
meant to serve as an example of how a currency can increase our
trust if it exists in a public way, free of centralized
control.
Recently,
Cointelegraph published an analysis that
attempted to examine the possibility of the Blockchain directly
preventing the coming of the next global financial crisis. Inside
of this analysis, lies the foundational assumption that the root of
the 2008 crisis was our high level of trust in our financial
institutions.
Inside of the same assumption, the
analysis even goes as far as suggesting that we never truly
questioned why these institutions were doing what they were doing
or how they achieved the record profits that they achieved, just
before we were hit with the full extent of the industry’s near
collapse.
As with any logical argument, there
is nothing wrong with basing one’s conclusions on foundational
assumptions. Therefore, as Coindesk says, if we accept it to be
true that trust was the issue here, then the Blockchain could be
the solution.
Even so, does this also mean that
it is the roadblock that can stop the crisis train?
First of all, given that there
continues to be a strong resistance in the banking space towards
actively using the Blockchain, it can be said to be logical that
the idea that banks created the Blockchain on purpose does not
really make sense.
Secondly, the same resistance that
gives credence to the idea that banks could not have engineered
this industry, gives credence to the idea that they are wary of it
because they believe it is a major risk to their future
success.
Reports like “How Blockchain Could Disrupt
Banking” by CBInsights, specify this risk with statements like
that a large survey that was run by the International Securities
Association indicated that 55% of the companies polled are
currently examining the possible benefits of the Blockchain to what
they already do.
With this, one should also keep in
mind that given the name of the surveying organization, the
companies involved were in the traditional finance industry, for
the most part.
What is perhaps the second most
important benefit that was mentioned by the same survey is
the possible utility of smart
contracts to the banking space. In discussing this point,
CBInsights pointed out the ability of such tech to automate many of
the time consuming, paper-based processes like any sort of
insurance or mortgage claims.
With these possible benefits, the
fear of the traditional finance players related to the Blockchain,
and the existence of the main technology as a trust-less entity, it
is safe to say that bigger changes are coming, although the true
extent of them remains to be seen.
By: BGN Editorial Staff
News:
Blockchain