Proponents of the blockchain technology envision a world without financial service providers. Asset ownership would thereby be recorded in a distributed, non-manipulable ledger – the blockchain – that is stored on each participant’s computer. Except for the digital currency bitcoin, this technology has not been widely applied so far. Many promises surrounding blockchain exist. The most important ones are:
Researchers argue, it is still uncertain whether the blockchain will be a disruption to financial services. For a well-functioning market for blockchain applications to emerge, these have to be able to compete with current systems. Blockchain services need a legal definition and should be compliant with rules and regulation. Moreover, there should be registration requirements for mining services as well as supervision since miners could become critical infrastructure.
For more information, please, read the LSE Business Review article: