Block chain technology is useful for enabling transactions/record keeping in a decentralized trustless enviroment but perhaps not very useful in a centralized markets. Eaxmple if A wants to buy from B, and A & B do not known/ trust each they go to the entity C both can trust. Can be a a marketmaker like an exchange, a regulator, a business etc. for closing the transaction. C’s job is to ensure the transactions take place and also act as guarantor if the transactions fails (one side fails to deliver on the agreed terms). In other words its a centralized market
Unlike a market with high number of buyers & sellers who are all unknown to each other and there’s no or low trust (decentralized market). Blockhain is very useful for decentralized markets unlike the centralized ones.
Usefulness of blockchain tech might have limited applicabilty is centralized markets. Mainly because of all the particiapants are known to each other, and have trust.
It is also to be noted that blockchain in terms of speed of compute is much slower than conventional exchanges, energy intensive, and with higher transaction costs. That makes it challenging to settle transactions in realtime where speed is of the essence. However it maybe noted, blockchain is radically transparent and chances of frauds/ mischief are minimised. Having said that, critics say Blockchain is a solution looking for a problem.
Have been reading about Blockchain disrupting industries for better part of a decade, however yet to see “killer app” or usecase for it.
Note: My understanding is derived from readings of The Bitcoin Standard by Saifedean Ammous and other similar texts.
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