Why Is Blockchain Rewiring Markets?

Blockchain's ability to replace middlemen with mathematics is precisely why this technology matters. It can reduce overhead costs when parties trade assets directly with each other, or quickly prove ownership or authorship of information – a task that is currently next to impossible without either a central authority or impartial mediator.

Moreover, blockchain's ability to guarantee authenticity across institutional boundaries will likely help parties think about the authenticity of records, content, and transactions in new ways. Consider, for example, the efficiencies that shared ledger technology might bring to the labyrinthine global payments market. Or how a secure, transparent, transactional environment might help developing countries reduce the estimated $1.26 trillion they lose each year to corruption, bribery, theft, and tax evasion.