But the key here is this: it’s free. Not only can the blockchain transfer and store money, but it can also replace all processes and business models that rely on charging a small fee for a transaction. Or any other transaction between two parties. And it’s understandable why some businesses don’t blockchain to encroach.
Transactions between individuals buying and selling service will see great change effectively wiping out companies that take a piece of each transaction. Using blockchain technology the transaction is free. Auction houses and any other business entity based on the market-maker principle will face difficulties against the blockchain.
Even businesses like Lyft, Uber and even Airbnb are threatened by blockchain technology. All you need to do is encode the transactional information for a car ride or an overnight stay, and you have once again a free and secure way that disrupts the business model of the companies which have just begun to disrupt the traditional economy. It’s not only cutting out the fee-processing middle man, but it’s also eliminating the need for the match-making platform.
Because blockchain transactions are free, you can charge minuscule amounts, say 1/100 of a cent for a video view or article read. Why should I pay The Economist or National Geographic an annual subscription fee if I can pay per article on Facebook or my favorite chat app? Again, remember that blockchain transactions carry no transaction cost. You can charge for anything in any amount without worrying about third parties cutting into your profits.
Blockchain may make selling recorded music profitable again for artists by cutting out music companies and distributors like Apple or Spotify. The music you buy could even be encoded in the blockchain itself, making it a cloud archive for any song purchased. Because the amounts charged can be so small, subscription and streaming services will become irrelevant.
It goes even further than that. Ebooks could be fitted with blockchain code. Instead of Amazon taking a cut, and the credit card company earning money on the sale, the books would circulate in encoded form and a successful blockchain transaction would transfer money to the author and unlock the book. All the money to the author, not just meager royalties. You could do this on a book review sites like, or on your own website. You could even include reviews and other third-party information about the book.
In the financial world the applications are more obvious and the revolutionary changes more imminent. Blockchains will change the way stock exchanges work, loans are bundled, and insurances contracted. They will eliminate bank accounts and practically all services offered by banks. Almost every financial institution will be forced to change fundamentally, once the advantages of a safe ledger without transaction fees are widely understood and implemented. After all, the financial system is built on taking a small cut of your money for the privilege of facilitating a transaction. Bankers will become mere advisers, not gatekeepers of money. Stockbrokers will no longer be able to earn commissions and the buy/sell factor is diminished.