Unbanking The Banks
Many people have forgotten, but it wasn’t long ago that Blockbuster was one of the most recognized household names on the block, the best thing since sliced bread. At the first spotting of Netflix, former CEO of Blockbuster said “Neither Redbox nor Netflix are even on the radar screen in terms of competition.” Blockbuster was the undisputed champions of home entertainment and for this reason, investors were flocking toward them due to their immense cash flow. To put it into perspective Blockbuster generated $5.5 Billion in sales in 2008 and by 2010 they were filing for bankruptcy. The list goes on with companies such as UBER who successfully disrupted the taxi industry GLOBALLY, or WIKIPEDIA who destroyed the encyclopedia industry literally overnight.
By looking at patterns of disruptive innovations, we’ve noticed a few prominent reoccurring traits. First and foremost, disruptive innovations fundamentally change the value proposition in the market, meaning that new technology often comes around with the shifting in morals of a particular society. Another outlying trait is that their functionality often targets niche markets and unconventional customers. Although, perhaps the most prominent trait of these innovations is that they are outright dismissed or deemed not worthy by market-leading competitors and then subsequently advance rapidly, and ultimately deliver sufficient performance and better functionality than what is out there already.
Most recently, we see a disruption in the capital markets industry with the inception and growth of blockchain technology. This technology fundamentally covers each of the aforementioned traits, with each of its use cases from cryptocurrency to smart contracts. At BNC we are ahead of the curb by confronting a niche market with endless room for expansion, an alternative to conventional banks. Through our SkyNet SDK protocol, a bridge will be created which allows financial institutions to utilize blockchain technology, without any infrastructural changes or disruption in communication between traditional banking channels (SWIFT & SEPA).