How to be a bank
Custodianship naturally evolves into payment systems
What is a bank? Based on the name, banks are custodians, in other words, they hold onto something for you. In order to do this, the first step required is that you have to be able to identify yourself to the bank. So the first technical challenge of banking is identification. The bank must be able to identify you reliably to hold onto your stuff.
There are many ways to do this, and there are always tradeoffs involved. They could give you a…