Today, major banks are touting their mobile banking apps as the next best thing. But are these “innovations” or just renovations on the proverbial deck of the Titanic? And similar to how BitTorrent impacted the entertainment industry, would incumbent banks have remained complacent without a prod from Bitcoin?
Also read: Goldman Sachs Admits Bitcoin is ‘Ideal Vehicle’ for Public Transactions
The BitTorrent Effect
BitTorrent is to file-sharing as Bitcoin is to money, the analogy goes. Prior to the advent of this file-sharing technology, platforms like Napster and Kazaa were relatively easy and straightforward to shut down. File a lawsuit, knock down some doors, shut down some servers, and the incumbent lives another day.
Then came BitTorrent.
Its decentralized peer-to-peer (P2P) file sharing model forever changed how files were shared and distributed online due to its architecture that made it immune to shutdown. BitTorrent quickly became one of the most common protocols for transferring large files, propelling P2P networks to surge in popularity. In fact, P2P file sharing collectively made up approximately 43% to 70% of all Internet traffic as of February 2009.