Security and privacy are the major issues. These issues leads to so many technology development.
For sure there will be impact of the blockchain technology, like a method for public consensus for operations in the financial markets, and possible currency, exchanges, smart contract and so on. There are a number of directions but the exchange under agreement that is public and the power of smart contracts, and other uses of cryptocurrencies will change the markets. Regulations will have to adapt and so are solutions. It will take some time, of course, but if it leaves up to its potential it will affect the markets.
You need to define or consider what "change" means in this context. If you are referring to localized systemic processes and procedures that impact upon the ways in which global financial services conduct business (circulate forms of value etc.), then both cryptocurrencies and blockchain (or rather distributed ledger technologies) will undoubtedly and indeed already are forcing a change in the way this occurs both publicly-facing and in back office systems. If, however, you are referring to a change in the fundamental grounds upon which global financial services operate then the answer, I suggest, is no. Neither cryptocurrencies nor blockchain "disrupt" in the sense that they are geared towards or will change the fundamental way that finance capital is used and thought about. Primarily because they exist squarely within the ideological boundaries of capitalism, and not outside of them. If a change in capitalism, as encompassing and thus another way of speaking about the financial system, is what is desired then the present thinking behind and practical implementations of cryptocurrencies and blockchain will not be changing anything soon
It also introduces some issues other than security and privacy. Arguably the role of banking institutions is to maintain an audit trail in case of backing out or correcting transactions, see bitcoin paper for a discussion of the role of banks. There are also questions around the implementation of smart contracts, and the ability to influence these, as per ethereum problems. As always it is impossible to separate the social issues from the technical in sociotechnical systems.
Adaptive property of Blockchain technology is making it too much popular gradually. Not only for financial systems it will bring a significant change in data management systems very soon. Efficiency of smart contracts are making it really popular to the security researchers and developers.
There is a chance that the world will advance at different velocities and that a huge gap becomes the reality between those who are rich and powerful and those who don't know and don't have access to technology and most likely will not use smart contracts or cryptocurrency. And that in a near future more people will feel trapped between the past and something that is not clear to them.
Well, financial system is a huge domain. Can the cryptocurrencies revolutionise the entire system? well not completely. But most of the parts yes.
For an example, Cryptos are not here to replace physical cash. They can replace the online payments. Likewise, there are several parts of the Finance industry which demands the physical transactions because of the traditional buyer and consumer model.
- Badges
- Science topic