What comes first about blockchain?. Opportunity or threat?

When something new comes out like blockchain, you first think of how it will improve our lives, you think of the endless possibilities. Once it’s starts being developed and deployed does it becomes a threat.

The same thing occurred with the internet 20-25 years ago, when it was first developed, people where excited by all the possibilities. Now to some degree people and companies see it as a threat, whether it’s being used to disrupt our elections or industries that thrived before the internet that are now struggling like newspapers.

I think the same thing will happen with blockchain technology.  –HenryStanley

Opportunities

I can use AI-based solutions to a few essential problems that hindered the future development of blockchain. The problems include slow transactions, lack of security and the waste of mining energy. Fortunately, we found that AI techniques and/or applications may provide highly effective solutions to the problems we identified.

Blockchain technology delivers four key advantages.

First, blockchain is a trusted network by offering a secured digital infrastructure for identity verification.

Second, it is a supervisory network to make sure people do no harm.

Third, it is a delivery network, enabling faster and cheaper international payments, and also makes the disbursement more natural and transparent.

Fourth, it is a collaboration network by providing incentives for crowd-based collaboration.  –Todd William

 

71% cited that blockchain poses no risk for their business or job.
– On average, respondents blockchain is not a threat to their business.

On a scale of 1 to 5, where 5 is the most threatening, these are their
averages:

– Marketplace Governance: 2.32
– Business Process optimization/Automation: 2.78
– Payments: 2.73
– Identity Management: 2.84
– Asset Tracking: 2.7
– Compliance: 2.78
– Authentication: 3
– Currencies: 2.27

On average, respondents do perceive more     of a threat for their industry. Every single category had a higher threat level.

-Marketplace Governance: 2.75
– Business Process optimization/Automation: 2.92
– Payments: 3.25
– Identity Management: 3.22
– Asset Tracking: 3.06
– Compliance: 3.08
– Authentication: 3.22
– Currencies: 2.69
StaceySchneider

Blockchain technology creates countless opportunities for disruption, which
in turn threatens incumbents. Blockchain is pervasive among all industries
but lets we will focus on payments and early enterprise adoption.

The Assumed threat

Blockchain presents a clear opportunity for businesses that are trying to improve transparency and eliminate middlemen, and for consumers who benefit from these services.

The threat of blockchain is primarily to the middlemen whose utility is replaced by blockchain. As is usually the case with innovation, the opportunity of blockchain presents itself first to the innovators. Only later, when the middlemen start to feel the impact of new blockchain technologies, do they realize the existential threat of blockchain to their livelihood.

Middlemen who had been doing well wake up to blockchain’s existential threat to their livelihood when they start to feel new blockchain technologies’ impact on their bottom line.

Yes, blockchain creates losers who reasonably feel threatened, but blockchain benefits the majority with its transparency and distributed systems that don’t require costly and often-opaque middlemen.

It’s a classic case of technological disruption, like how ride hailing is replacing taxis or booking sites replaced travel agents.-Matt Sheldon-

Blockchain technology creates countless opportunities for disruption, which
in turn threatens incumbents. Blockchain is pervasive among all industries
but lets we will focus on payments and early enterprise adoption.

We view blockchain as a threat to Legacy Companies, their business models,
and their control of present economies. Blockchain is presently disrupting
the status quo and Legacy Companies are trying to integrate functions of
blockchain to avoid disruption and disintermediation in an attempt to stay
relevant.

For Example, JP Morgan has been building their own private blockchain called Quorum since 2016, which is a copy and paste of the
Public Ethereum Blockchain. They have recently announced the launch of
their JPM Coin which will be transacted on Quorum.

Over 180+ banks have signed Letters of Intent to use the JPM Coin. The JPM Coin will enable participants in this system to transact 24/7/365 with immediate settlement
while incurring fractional fees. JP Morgan is well aware that the days of charging for payments are over. Their business model has been disrupted.

Therefore, they are doing the next best thing and that is taking what the market will give them. They are trying to control the transition to blockchain by having other banks and customers transact on their private
blockchain. They may no longer make money off charging for payments but they can attempt to retain their clients and continue to solicit other financial services such as wealth management and lending.

Central Banks are integrating a digital coin for transaction settlement as well. The use of blockchain is quick, less error prone, and cheap. Sending a wire from a large US Bank to a small international back is slow, costly,
and error prone – many times your wire can get lost and take several days to recover. Digital Currency is very different than Cryptocurrency.

Legacy Companies and Central Banks are presently adopting digital currencies rather than cryptocurrencies. The key differences are cryptocurrencies provide anonymity and are usually decentralized (Bitcoin, Ethereum, Zcash)
whereas digital currencies of interest to Central Banks and Legacy Companies are controlled on their central servers and do not provide anonymity. These digital currencies are also less volatile and will be backed by dollars, treasuries, or another sovereign nation’s currency. All cryptocurrencies are technically digital currency but not all digital
currency is cryptocurrency.

We believe that we are in an era of technological disruption, which is a threat to all incumbents. They are fearful of disintermediation because of the countless possibilities of these technologies, but they are not harnessing the true value of distributed ledger technology by maintaining
their closed, centralized blockchain networks. To truly capture the value of blockchain technology these systems need to be opened up and become more decentralized. This will be the opportunity of the future.
MattD’Souza

Blockchain is an investment. With any investment, there is an obvious risk. Take, for example, bitcoin itself. Bitcoin seemed like a gold mine, with it’s highest price being $19,783.06. This form of currency started out as a mere .08 cents, which translates to 12.5 bitcoin per dollar. If you had bought a dollar’s worth of bitcoin in 2009 while it was first introduced, you would have had $247,288 to your name if you sold it at it’s peak in December 2017.

Now was there any risk involved at all in 2009? Absolutely none. Considering you could buy a can of soda in most convenience stores for around $1, it’s not a big impact. In the case of 2009, the opportunity could have been around 90% while the threat being 10% if you were afraid of losing a dollar.

In the following years however, there was no telling when Bitcoin would fall. In theory, it should have fallen much sooner since it was fairly easy to obtain, using mining programs on computers.

Many people set up mining farms in the comfort of their homes, and offset the balance of the cost of computers fairly quickly. If you bought Bitcoin for $19,783.06 in 2017, there would be immense threat, likely 95% while the opportunity was no doubt 5%. It had reached it’s peak, and everyone knew it. I would say the beginning of the end of bitcoin was when more and more countries started to ban bitcoin.

To get to the point, the threat is a very important factor in the stock market. Is it worth less than a dollar? Then the threat is near minuscule. Is it worth $19,000 for only one item? You might want to back away, because chances are it’ll only fall like a brick once the hype falls.
Sandeep Aggarwal

When it comes to disruptive Internet technologies, every opportunity is a threat to someone. The tremendous opportunity associated with cryptocurrency in general, and Bitcoin in particular, is the disruption of traditional banking by innovative, decentralized networks performing
similar functions. What we’re learned from Bitcoin is that decentralized networks can maintain public ledgers with good security, privacy, and usability features for a tiny fraction of the cost of traditional banking.
Sarah Cohen-

I think we’re already seeing huge benefits from blockchain around the world. Although the US dollar is stable and our banking system is reliable, in countries like Zimbabwe, Venezuela, and Afghanistan, people are already able to sidestep corrupt regimes and shaky currencies using cryptocurrency. The change starts there, but the benefits will accrue everywhere. Reliable, inexpensive digital payments that work anywhere in the world is already an incredible innovation. And transparent, fraud-proof systems that aren’t owned by anyone will be the next wave.-Marc Blinder-

 

READ MORE:

Stolen bitcoins from Bitfinex spotted, moving on the blockchain after three years of lying dormant.

Bitcoin Lightning Nodes with mixed features now ready for launch by Samourai and Nodl.

Facebook ’Globalcoin’ crypto will be tied to multiple currencies—Facebook Executives.

A draft bill to ban Cryptocurrencies in India, The Reserved Bank of India (RBI) denies involvement.

Coinbase in trade surge as Bitcoin trade volume hit a 14 – month high in May.

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