9.2 Banking in the Age of Blockchain - Video Tutorials & Practice Problems

In this section I wanna` to talk about banking in the age of blockchain, and this is important because Bitcoin is actually originally created to remove the need for banks. So if you're actually a bank, this whole concept of cryptocurrencies and the rise of Bitcoin presents a threat. So the key thing is how does the banking industry actually continue? And how can it actually collaborate and work along with blockchain? In this section, I'm going to begin talking to you about banking in the age of blockchain, and I will expand a lot of these concepts. So to do that, I wanna to go back to some of the key elements that we spoke about earlier, we said that when you transfer money over the internet, you need the services of a third party, such as a bank, a credit card, or PayPal, that is, you can't simply just take some money, attach it to an email, and send it to someone else, you need a third party, in this case, a bank, for instance. Now, what that really means is that we rely on centralized third party agents to manage and govern the transactions that we do with money in other ways. We can't really just send money along the world, we need these banks. And this is why you have central banks and why you have all these different banking institutions as part of the financial system. Now, when it comes to Bitcoin, that transfer value is done peer to peer. And we said that when it goes, a transfer goes from a peer to another peer, all over the internet, you're actually doing it over the Bitcoin network and you leverage blockchain technology. In a nutshell this eliminates the need for these banks, because there's no centralized third party agent needed. As we go through this entire lesson and I expand upon this, what I will be focusing on primarily is what role can banks play in a space when you do not need that third party agent? And could there be a role for these third party agents as we go through, we will focus on that.