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> So a real-world example, then, that it takes 20 years for a new, efficient 2 billion-euro post-trade system with full central-bank backing to start recouping
by gaff33 10y ago
> So a real-world example, then, that it takes 20 years for a new, efficient 2 billion-euro post-trade system with full central-bank backing to start recouping its cost.
Right, so the article establishes that clearing systems currently are eyewateringly expensive!
> It would be a miracle if blockchain could repeat this feat in a fraction of the time without similar backing or funding.
Well maybe - but the whole point of disruptive technologies (mobile phones, uber, etc) is that they can do what existing technologies do at a fraction of the cost.
Not to say that there isn't any hype in this space, but the pie is worth so much that it's surely worth a decent chunk of R&D budget!
- kakarot 10y agoBitcoin / Blockchain technology isn't economically disruptive from an investment perspective. It is socially disruptive in a way that has economic consequences.
- guylepage3 10y agoCheck out Blockstack.org and the new decentralized web that allows developers to build truly decentralized apps such as Twitter, Medium, Kickstarter, Reddit, etc.
- pfraze 10y agoI happened to catch an a16z podcast on (the original) disruption theory the other day. They clarified the theory in a way that, perhaps, Blockchain advocates would appreciate right now. The original theory was specifically exploring why market leaders can be overtaken by a new player. "Disruption" is not just a revolutionary tech -- cars and the iphone don't qualify as disruptive, in the original theory's definition. Disruption occurs when you find a niche market that's too low-revenue for the current leader to engage. The niche is often a small market that doesn't need the leader's full solution ("low-end") or which simply wasn't targeted at all ("new-market"). A disruptor will engage those niches because they can survive on the low revenue, win their markets, and use that to sustain growth into larger markets, until they become a new leader. (The Wikipedia summary is pretty good: https://en.wikipedia.org/wiki/Disruptive_innovation#Theory https://en.wikipedia.org/wiki/Disruptive_innovation#Theory) If you're looking for the Blockchain to disrupt, by the original idea of disruption, you shouldn't be looking at serving the same market that a bank does. You should be looking for a low-end or unserved niche -- which is especially smart for FinTech, which is inherently risk-sensitive, and so needs a lower-risk market to mature.