[Analysis] How crypto contracts disrupt financial services

Financial services has been one industry that has yet to face significant disruption from software and the internet. Innovations in FinTech have build out the existing system rather than displace it entirely. This is due to the substantial moats that large banks have with existing distribution channels through branches, sovereign insurance on deposits (FDIC), special regulatory status and a trusted brand of being a safe place to keep money.

Blockchains operate as global, shared accounting systems that eliminates the need for a trusted third party. By removing this dependence, many traditional services that companies charged for can be dis-intermediated and executed entirely by software. Finally, the open-source nature allows for extreme composability to build on existing layers and create entirely new markets altogether.