World Without Banks ?

Concept

The Irish banks went on strike in May 1970. The Irish, who have been in the banking sector for months since the 1960s, have not been twisted. 11 thousand small bars and pubs with a steady crowd took on responsibility and turned into small banks in a country with a strong pub culture, like Ireland, where a visit to the pub is a part of everyday life.

It was founded on mutual confidence. Cheques were collected by the pub owners, whose clients knew and could say who could pay off their debts. When it was used up, often on the back of cigarette packs or paper napkins in exchange for cash they made their own promissory notes. People are likely to drink, purchase clothing and food and shop, all funded by their local pubs. The cash was available at the local bars, grocery stores and other local distributors.

During the six-month strike that ended in November, more than 3 billion pounds changed hands. Only a few checks and priced notes were not honored by the Irish economy. Community meaning and common interest have allowed 3 million people to live. Indeed, after the strike Irish GDP grew.

The average citizen may be confused by a strike in the banking system. Banks are an important part of our lives today. In order to sustain our monthly income, to loan money for us, when we are interested to buy a car and give us a loan when the house must be ready for purchase, we count on our bank to keep cash flowing through our cards.

However, the example from the Irish Pubs raises a problem that becomes more important every day: can a normal economic structure be sustained without centralized financial institutions, such as banks?

Benjamin Netanyahu, Israeli Prime Minister, recently said that banks are bound to disappear while meeting journalists in the cantina of the Israeli parliament, the Knesset.

“The reason that you don’t sell money is because of the risk, and so you use intermediaries who handle the risk, and that is the reason that banks exist. Will banks eventually disappear? the answer is yes. Should it happen tomorrow and should it happen because of Bitcoin? That is a question mark, but Bitcoin is certainly pushing in that direction.”

- Benjamin Netanyahu, Israeli Prime Minister

What is Bitcoin?

A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007.

Today the new coin is called a "digital asset," and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months.

Direct Banking ?

The first direct bank was established in England in 1989, simply named First Line. Direct banks are banks that operate without the common branch structure and are normally only available online, saving costs and offering lower commissions and fees to their customers. Several such banks were founded in the 90's, but most were owned by other, larger banks.

Banks which mostly are combination of smart contracts if one smart contract will suffice in the cloud, bring money together and invest it more effectively in money between you and millions of other people.

Smart contracts similar to what we know, which we use to rent a flat or take a mortgage, will only be digital, stored on the Blockchain network. It is impossible to change once the contract is signed and sealed into the Blockchain network. It is actually authenticated by all other users of the network by being decentralize to the Blockchain network, making it practically impossible to penetrate.