We are making contribution to subtle changes in broad social values and structures.
Advantages of the block-chain protocols
In this new government, everyone uses digital currencies. Digital calls such as bitcoin based on block-chain protocols have many advantages. This digital currency is a system that eliminates corruption, transparency and accountability of transactions to prevent financial accidents and damages. Foreign exchange remittances and exchange rates are no longer required and the associated costs disappear. If properly managed, there is no problem with the theft or distribution of transactions and capital, and the need for banks or central government agencies is eliminated.
This new government / parliament can implement genuine democracy through digital voting. One person can vote one vote at a time. If everyone can vote on their smartphone, there is no election fee. You can vote transparently while watching the record, and you can increase your turnout. But there is a problem for one person to exercise one vote. For example, when voting for too difficult science and technology. Everyone can not have extensive knowledge. A person who does not know the subject can vote and get totally wrong results. You can vote in the presidential election, but you may not know about education reform or tax laws. How can ordinary citizens with ordinary knowledge vote on these issues?
The technology world of banks
Nowadays, ordinary people hate going to the bank. It is annoying. The daily operation of the financial machines that are performed daily is both routine and very complex. But what is happening in the financial sector is a huge change for everyone.
Think about the financial crisis that took place in 2008. This is a very simple matter. How we make money, spend money, save money, send money, and make money are the vast majority of what we do. The future of all these things will change, and most will borrow the power of artificial intelligence.
The technology world that is growing fast and focusing on money is called 'pin tech'. It means simply that technology and finance met. But there is a bit more to it than that. It has been several decades since financials were computerized. Numerous routine financial transactions are done by algorithms. The speed of the market is moving in microseconds, and the level of the financial practitioners is being driven by technology. But most of FinTech is what is happening inside the sacred hall of finance.
Everything related to start-ups, apps, the Internet, and digital that began to infiltrate Wall Street is transforming into a huge wave of fusion with ingenuity intelligence. They are aimed at the old financial trading and management, business model. PinTech may be the software that a small team of a few people have coded to ruin a company.
This is a world that redefines credit by a massive distributed computer network that no one can touch. The branch of the bank is no longer in the street but in the pocket of people. Crowds of people gather to make thousands of start-ups. Money moves the world without friction. Financial advisors are software. The market moves without people controlling. You might feel exaggerated. But exaggeration is sometimes built on the basis of surprise.
The End of Brokers
In recent years there has been a theme of the FinTech HIP machine, and now financial intermediaries are at an end. Instead of financial brokers, P2P providers, such as Bitcoin believers, block-chain patrons, crowded funders, crowred lenders, and crowd-barrels, will take over. If anything else in the digitalization of other industries is learned, it is the fact that centralized companies suffer when the Internet is involved. Will the financial system suffer? There are many people who think so.
Bit coin is just the beginning. The technical basis of the bit coin, also known as the block chain, is notorious for its bitcoin digital currency in the last few years. Many people say there is real potential in the block chain, not bit coin. However, people tend not to think about the two separately. Decentralized books, such as block chains, should give incentives to mutual trade certification. And digital money is just such an incentive (for example, bitcoin mining).
Etherium offers digital money, but focuses more on smart contracts. "A block chain usually provides everything that brokerage requires, everything that is required of multiple parties for execution.
The job of Etherium is to enable a 'smart contract'. Smart contracts on the block chain, however, do not require individuals or corporations acting as trusting entities. "Block chains and digital money mean that there is no commission on cash flowing between trading partners' pockets. It simplifies financial management tasks so that companies can finance themselves. Who would need a broker?
Conversation with the enemy?
There is no doubt that the huge wave of financial sector technology will be devastating. However, if you expect the end of a large bank, you will have to wait a little longer. David and Goliath have decided to relax the tension for the time being. The topic that is repeated in the conference is the partnership.
Jesse McWaters, project leader of the World Economic Forum, said he had asked 50 finance leaders at the World Economic Forum in 2014 to think about PinTech. Their response was mostly to ignore PinTech. They had the scale and credit of themselves and had the experience of navigating through the complexities of regulators. But in 2015, the tone has changed. The banks were nervous and anxious.
This year's debate has evolved again. McWaters said: "It was a little grimy. People seemed to feel that they had a solution. It seemed to me that they agreed to cooperate with each other and that it was no longer a threat to financial services. But there is more than that. Now is the chance to correct financial services. "McWaters says PinTech is not a" random violent act. " Many companies say that focusing on the lovable friction point that customers are dissatisfied. Apple page is not to collapse in the credit card they have expertise that will focus on the consumer experience.
Large companies and start-ups are working together piecemeal, or a customer of one another or may be acquired and acquisition to each other. Two start-up founders who attended the panel were talking about the experiences were fed to grab larger companies between them to the blink of an eye. The chief task and Catherine bay of Sant Chief Technology Officer of Bank of America, said large companies have acquired or sometimes compete if the pin-tech companies working with or necessary.
The impact on the financial markets have no independent technology
Most of the concerns about the pin-Tech focuses on financial activities ranging from customer service management organizations. But is ultimately more power will affect the banking industry action. The director of the Electronic Frontier Foundation, look no class at all of Lynette's founder, Brad Templeton skills, for example, that such autonomous car said he could have a significant impact on the insurance industry. Brad Templeton said. "If people in the financial industry as a lease instead of not using the auto finance retail auto financing industry will undergo a change. If the introduction of Autonomous Vehicles casualties reduced to 1.3 companies will operate their own insurance. "
What is the impact of early disease detection technology on insurers? What is the impact of the extended life expectancy on financial advisory and retirement planning? What will be the impact of solar energy on future product markets? Templeton also mentioned quantum computing. The current financial security policy is based on the idea that it is very difficult to unlock a large number of passwords. This is how most data passwords are operated. However, an incredibly powerful quantum computer (although it does not yet exist) can easily break through these security tools.
What is the plan for 2026?
PinTech and giant finance are good friends at this time, but that's not the reason why they should settle for reality. Technology is changing rapidly, and only those who are focused on the future can survive.
Templeton said: "If you say to me, 'Here is my 2016 plan,' I will tell you, 'This is a very interesting plan, but what I can tell you is that this is wrong. You must have a plan for 2026. "
This would best summarize the central theme of the conference. What you should not forget when planning for 2026 is the exponential nature of this technology that surprises people beyond linear characteristics.
We are making contribution to subtle changes in broad social values and structures.
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