That said, Palychata's "redundant" prediction is a worst case scenario. He believes it's more likely that stock broking firms will adopt the blockchain technology to trade among themselves, rather than offer it directly to consumers.
And even if a startup or coder builds a blockchain for trading shares and opens it directly to the public, Palychata thinks the security issues around keeping private keys — the access codes used to get digital assets traded on the blockchain — means current firms could develop a new role as the guardians of these keys.
These two paragraphs are the most important in the whole article. The ability to trade financial assets directly have existed for a long time, still people rely on brokers for the added layer of security and legal protection. Brokers also help avoid some of the complexities of the financial market.
Technology itself is an example of this. Networked computer have the ability to trade information directly between each other, butbmost people still rely on "data brokers" such as Gmail, Dropbox and others. Why ? because they simplify the process and add a sense of security.
Palychata is right on the money here. Banks and brokers will continue to exist, only their tools that will change to increase the efficiency of the process.
It needs to be easy enough to use that my grandmother can understand it. Worst case scenario isn't possible until that happens. When someone comes out with a cryptocurrency backed credit card system that granny can just swipe at the grocery store and either easily reload, or attach it to an existing account, it will likely still be the banks behind it.
These two paragraphs are the most important in the whole article. The ability to trade financial assets directly have existed for a long time, still people rely on brokers for the added layer of security and legal protection. Brokers also help avoid some of the complexities of the financial market.
Technology itself is an example of this. Networked computer have the ability to trade information directly between each other, butbmost people still rely on "data brokers" such as Gmail, Dropbox and others. Why ? because they simplify the process and add a sense of security.
Palychata is right on the money here. Banks and brokers will continue to exist, only their tools that will change to increase the efficiency of the process.
It needs to be easy enough to use that my grandmother can understand it. Worst case scenario isn't possible until that happens. When someone comes out with a cryptocurrency backed credit card system that granny can just swipe at the grocery store and either easily reload, or attach it to an existing account, it will likely still be the banks behind it.