What is Blockchain technology? To put it lightly, it refers to the underlying technologies used for Bitcoin and other cryptocurrencies.

As cryptocurrencies are starting to become more accessible to larger audiences, disruption has started to occur in value chains from many areas. Due to the growing market, even banking entities, such as the ECB, have started considering developing digital currencies, based on blockchain technologies.

This phenomenon, however, should not come as a surprise, when considering that since the emergence of Bitcoin, and subsequently blockchain technologies, back in 2008, the interest has been steadily increasing, for various reasons.  If rightly researched beforehand, cryptocurrencies can almost make you rich overnight, which is what many players of the financial sector have been looking for.

By using three examples, the impact that blockchain technologies have on the financial industries can be outlined:

• Verifiable, robust and cryptographically secured identities will ensure KYC/ AML compliance – given the fact that data is the most important asset class of the current economy, but it should not be seen as the plant and equipment to generate value
• Transfer of value increments without an intermediary will dramatically reduce cost and increase speed of payments – cryptocurrencies represent an alternative way for individuals to move large amounts of money for relatively low fees, over a medium time frame
• The speed and efficiency of Blockchain creates opportunities to participate in wealth creation – there are many opportunities in security tokens, which are ultimately, a form of contract, entitling the parties to some rights

When looking at the above-presented information, one can state that blockchain technologies have true potential of being successful. There are, however, a handful or reasons why it might not reach its full potential. Some of the latter can consist of resistance from regulators and state backed institutions or from people themselves, who have already started seeing cryptocurrencies as threatening to their jobs and businesses.

We are curious to see what will happen in the next decade, given that we are expecting it to be the most dynamic yet. It is likely that the world as we know it will shift into one where large stakeholders, governments and big tech companies are no longer in control of the economy, but people who own financial tools and have endless possibilities.