The word disruption has many negative connotations – if a student is disruptive in a classroom, for example, or if public transport services are disrupted through strike action. However, in the case of modern institutions such as banks, legal firms, governments, and healthcare, not only are they outdated in how they transact between each other and with individuals, they are prime for positive disruption.
So, if disruption is typically perceived as something negative, how can disrupting institutions we are familiar and comfortable with be a positive change?
If you’ve already read my guide on decentralization, you’ll already have a good understanding of how traditional institutions act as ‘trusted’ third-parties to facilitate transactions between two or more parties.
Disruption occurs when that ‘trusted’ third-party is no longer relevant or required.
Blockchain-based Fintech is already disrupting banking institutions with its ability to make nearly instant peer-to-peer transfers without any need for the involvement of a centralized bank. Since banks are no longer required to transfer value between two or more parties, fees are exceptionally low by comparison. Not only that, transactions made on a blockchain are immutable, meaning they are permanently recorded and cannot be changed.
However, it is not only financial institutions that are being disrupted by blockchain technology. It’s entirely possible, through smart contracts, that legal agreements can be created between parties that don’t require the intervention of expensive lawyers. That can’t be a bad thing.
Intellectual property management and rights, healthcare, supply chains, advertising and identity management are all industries controlled by massive, international corporations and institutions. You currently have no choice or freedom regarding any of it.
That these institutions need to change to keep pace with our increasingly tech-driven society is not even in question. Blockchain technology is growing faster than all these industries can keep pace with, and they will be disrupted. It’s only matter of time before they will have to adapt or die.
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Chronic crypto nut and freelance writer/editor for longer than I care to remember. Have finally found a home here at Crypto Disrupt.