When an industry transitions from using one or more “smart” and centralized networks to using a common, decentralized, open, and dumb network, it provides a significant benefits to the industry.
First of all, the internal costs shrink considerably. The costs of contracting are reduced via software contracts which take care of policing, timely payments, transaction execution, bargain, etc. On this foundation a tsunami of innovation that was pent up for decades is suddenly released. All the applications that could never get permission in the closed network can now be developed and deployed without permission. At first, this change involves reinventing the previously centralized services with new and open decentralized alternatives, which involves the removal of entire layers of intermediaries which are no longer necessary.
The Internet effected such disintermediation by replacing brokers, classified ads publishers, real estate agents, car salespeople, and many others with search engines and online direct markets. In the financial industry, the Blockchain creates a similar wave of disintermediation by making clearinghouses, exchanges, and wire transfer services obsolete.
Therefore, this will enable Peer-to-Peer exchange of values where significant values can be held by people involved in value creation, then those involved in capturing of values. As internet reduces the cost of search and co-ordination, Blockchain cuts the cost of bargaining, contracting, policing, and enforcing the contracts. Thereby, decentralization will also create a truly sharing economy.
Source: https://www.linkedin.com/pulse/blockchain-real-sharing-economy-uberisation-dr-mihaela-ulieru
Blockchain is so interesting in the sense that its premise is self-regulation. In the light of so many accounting and financial scandals, the US government is so strict on regulating businesses. You mention how certain industries will become obsolete as Blockchain becomes more popular – I agree. In the same way that Expedia or Travelocity had shook the travel industry, it would be very interesting to see how Blockchain could cut out the middleman of credit card clearinghouses and wire transfer services. Great article find!