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To answer this question properly we need to have an understanding of why Blockchain technology is so effective in context of this modern financial system. We have all heard that Blockchain is essentially a virtual ledger shared over a distributed database. This means that all the transactions that are being generated are continually being verified and stored on various nodes across the globe. So there is no one critical point of failure............kill one node and it'll survive in hundreds of others, even thousands.
Not only is a blockchain secure from being taken down but it is protected by encryption so un-breachable that we have a better probability of an asteroid taking down this planet than blockchain encryption being cracked open. There is a reason why hackers find a around this rather than through this encryption. That is why the hacks and security breaches are by compromised passwords, bug exploitation, phishing, etc.
Here is the summary.
- Blockchain is censorship resistant
- cryptographically secure
- Immutable
.... all of these qualities make blockchain an ideal solution for innumerable financial scenarios. Perhaps, this alone will not be the reason why blockchain will change the world. The above mentioned qualities also allows for creation of secure tokens that can be treated as money. So this combination of tokenization and decentralization is what is going to create the disruption that we all need to change of the status quo of this worlds endless loop of misery.
Allow me to visualize all of the above in points:
1. Tokenization economy will put the real world objects in touch with the tokens on the blockchain. Meaning that this token will now represent the ownership of real world objects and can be used for proving ownership or transfer of value/rights (fully or partially) and in the process taking out the interference of central governance from our daily lives.
2. Smart contracts and other similar protocols will remove the middle man from your dealings. This boils down to the fact that you directly deal with the one you are doing business with. Remember that this is not just about being free from commission. The existence of a middle man basically means that you are not completely free to deal with who you are doing business with and governments exploits this fact to the utmost.
3. Also remember that crypto tokens on the blockchain can be fungible as well. This mean that you can trade them in for fiat and other kinds of money. This implies that the blockchain has a direct line of connection with the financial system. MEANING - If for some weird reason you thought that cryptocurrency was not real money before, now you can be assured that it was and is real money.
4. All of the above also boils down to the fact that if this revolution goes through, then banks will be out of business. If you can safely store your money safley on the blockchain, complete transactions on the blockchain, send and receive payments for good and services over the blockchain, form contracts without intermediaries ................ then why would you need banks?