The bundle is something that industries around the world depended on for ages, as it results in control of people’s ability to access some asset, service, or feature. It has existed for a long time in any industry, and until recently, many expected that its existence would remain constant forever.
However, things started to change with new advancement in technology and providing service, and some industries have already gone through the process of unbundling because of it. According to experts, the same will soon happen to the finance industry thanks to blockchain technology and digital currencies.
The bundle has always been a vital part of the financial industry, as banks and financial institutions provided a way of keeping and saving money to the majority of people around the world. As such, they had nearly unlimited power in the industry, which is what led to some bad decisions. Eventually, cryptocurrencies emerged as an attempt to take away that power, and a decade later, we are at the end of 2018, witnessing the beginning of the financial industry’s unbundling.
While the process has only just begun, many expect it to speed up soon, likely in 2019. The next year — as well as the ones that come next — will see a lot of change in the financial industry, and the entire past decade can easily be considered a period of preparation for this change. Emerging startups will unbundle much more than just the financial sector. However, to be and remain successful, they need to do it smartly and steadily.
Blockchain To Disrupt Banking
As mentioned, financial institutions were controlling financial systems of the world for a long time. This power is something that they have had ever since they came to be, and the fact that this power is now in danger of being lost is an entirely new experience for them.
Of course, the factor that is endangering it is blockchain technology itself, and the process has already started, especially when it comes to Asia. Numerous companies are attempting to make decentralization a new mainstream trend, and that includes finances as well.
Companies are starting to expand their offerings and include some of the features previously only seen in banking. These offers include things like payments, loans, remittances, investments, and more. The entire Asian economy is trying to shift towards digital money, with some of the leading countries being Japan and South Korea.
These countries have put in a lot of effort into coming up with regulations to stabilize the crypto space and make a shift towards blockchain and cryptocurrency possible. Meanwhile, within the crypto industry, around 80% of all trades come from Asian countries, which is further proof that the trend is taking off in the East. While sending payments is currently the most commonly used feature, soon, numerous other possibilities will open up.
It all Comes Down To Technology
When Satoshi Nakamoto created Bitcoin in 2009, the idea of a cryptocurrency revolved around using it for making payments with a new form of digital cash. However, developers soon discovered additional use cases for crypto and blockchain alike, and in blockchain’s case especially, these use cases spread out to include nearly every existing industry.
The growth was fueled by hype, as much as a necessity for change, and it soon became apparent that the existing technology cannot match all of these use cases. At least, not yet. Modern online services such as Netflix, would not be able to create much of an audience before the internet spread across the world and became a norm. Once that happened, Netflix quickly emerged and started establishing dominance.
The same is true for crypto and blockchain, and while there are many potential use cases, not all of them are possible at this point. However, in 2019, things might start to change, and further development will likely bring even more exciting capabilities to the blockchain technology. For the moment, the crypto market is still suffering the effects of bearish 2018. But, as many experts have already pointed out, this will likely change at some point, maybe in only a few weeks, or months.