I know the topic seems to be redundant and many before me have already provided narratives and videos around it. There are impressive TED Talks that provide the background about it too, so bear with me with some redundant info to start with.
As like almost any other IT professional, when I heard about the block chain, my first reaction was to brush it off like a fad our industry finds every couple of years to sell. Usually it is something same in repackaged jargons, or slightly improvised form of same concepts.
What makes Block chain different is that it was the Bitcoin that was in the forefront and Block chain was just an afterthought and people found Block chain quite handy in secured transactions and only after establishing the Bitcoin marketplace people realized the true potential of the secured distributed ledgers.
FT’s infographic below is apt for the primary information.
Why the rush?
Those who are following the industry usually debate the sudden growth of mushrooming start-ups around Block chain and crypto currencies and even other FinTech start-ups. Though Block chain is just a part of current FinTech rush still there are reasons & relevance for all these start-ups to come along, some which are listed below:
- As Internet became relevant for people, companies like Google & Facebook identified the opportunities that were non-existent before.
- As Block chains or Secured Ledgers become a norm, new market opportunities will present themselves.
- These start-ups are in a unique position to understand the demand cycle and will be best placed to provide better solutions in future.
- After a while the market will enter into a consolidation mode. Many of these start-ups will be either bought or occupied by other start-ups.
- Idea of Block chain is relatively new and many experts differ in the execution strategy. Many start-ups follow different strategies for their solution delivery.
- Value creation from current solutions will drive the next innovation cycle for FinTech.
- If Banks foray into Block chains now, they will add a gamut of additional Financial Services to both B2B & B2C channels.
Of course running a commentary now for FinTech would be too early, but the telltale signs of the sector are very promising and Block chain is one of the drivers for this rush.
Time will tell how it really shapes up, but those who know me, know that I enjoy being the devil’s advocate. It’s easy for me to see the failure modes or flaws of an argument. So the narrative above from me took time to form and finally got me convinced that Block chain will not fade away for a while and the technology may remain relevant in some or the other way for a longer time.
I would love to know your thoughts over it, so I welcome you to contribute and bring the discussion forward.
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