Whether bitcoin or a digitial currency ever becomes a mainstream way of commerce certainly is open for discussion. However it's legacy, blockchain, will prove to be the most enduring acheivment of this technology. Blockchain is already being heavily invested in as Wall Street embraces this disruptive technology.
So what is blockchain and why should we care. First and foremost blockchain is a distributed ledger which allows open, transparent and secure way of booking information. In essence you are proving a full audit trail in real time for a transaction or commodity as it changes hands. By creating a token, one is creating a digital bearer bond or a finger print to each transaction on the block.
Banking certainly seems an obvious complement to this technology. Transactions can be booked and cleared in realtime with compliance and risk management built in. The affect of this will allow the freeing up balance sheets and capital. Banking however is not the only application and the scope to which this technology can be applied is scary. Establishing a public key allows one to support the provenance, buying, selling, trading , insuring and tracking of virtualy everything. Think of fine wine, jewels and antiques as they change hands through a transparent trail which creates authenticity. Any commodity, electronic part or consumer product will be followed in real time rendering serial numbers and SKU's as absolete. Perhaps title insurance becomes a document of the past and the mortgage and loan process can be optimized through decentralized sharing and authenticiation in what is know as smart contracts.
I have touched upon just a few of the applications in which blockchain will have an impact. What is interesting and profoundly important is the efficiency and security that blockchain brings by being decentralized. I also fully recognize that the technology can seem daunting and complex. However, like any technology, it is only as good as the function it provides and blockchain is a powerful tool.