2 Banking, Double Spending and a need for Cryptocurrency Banking Sector How do you think the modern banking sector works? The modern banking industry started about 700 years ago in the city-state of Venice. Many merchant lineages including the famous Medici family became extremely rich and powerful thanks to the industry. Though Banking has undergone radical transformations in the last century, the fundamental principle remains the same - the customer pays some money for an institution to hold, protect and then give back a certain interest on a larger sum that the customer deposits. This, however, means that the bank holds a larger power over deciding the rules of the transaction thanks to its bargaining capacity in the transaction. This phenomenon is called the centralisation of authority. Centralisation is the concentration of control of an activity or organization under a single authority. Banks naturally have a lot of employe...