If consumers and banks had a choice they would completely disassemble and recreate the banking industry, with blockchain as a foundational part, according to Alex Tapscott, CEO at Northwest Passage Ventures.

Speaking at LendIt USA event, which took place in New York this week, Tapscott impressed that blockchain was “the second generation of the internet.” Both the answer to the double-spend problem and a removal of middle men in the banking process, it can create a systematic unbundling of the entire industry.

Bringing up the ideas of economist and theorist Richard Coase, Tapscott pondered whether, in a future where firms are continually outsourcing key elements of their businesses, why they would not move to an entirely blockchain-operated system. The idea, he admitted, is pie in the sky, and one that will not see any form of implementation until well into the 2020s.

The Internet of Things will be a key enabler for the proliferation of blockchain and perhaps could be a keystone for a “ledger of things” to go along with it. Blockchain is no longer just a system for Bitcoin users, concluded the Northwest CEO, noting that a system that once propped up the buying and selling of guns and drugs may do the same for the entire legal financial system.

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by Alex Hamilton
Alex is Senior Reporter at IBS Intelligence, follow him on Twitter or contact him at: alexanderh@ibsintelligence.com