The Double Spend Problem
The role of banks in our current financial system is crucial because it prevents the so-called "Double Spend Problem". Digital money
is like a file saved on your computer, it is simple for someone to "counterfeit" it by copy and paste the transaction.
Banks avoid this Double Spend Problem by keeping track of the money in everyone's accounts, ensuring that nobody can carry out a single payment multiple-times.
But that is in the past. Cryptocurrency
and its underlying infrastructure are one of the first methods capable of solving the Double Spend Problem without having to rely on third parties, such as banks.