The economic model presented here is perfectly suited for implementation on blockchain. Using blockchain to replace banks is actually a very minor change in the way things are already done. Blockchain is only a ledger or recording device that keeps track of who has what money, and who has given what to whom. Thats really all banks have been doing themselves, while charging interest (labor) as compensation for performing that service.
Blockchain/cryptocurrency as it now stands has three problems that need addressing. Once they are fixed, blockchain can provide person-hour tracking of people on the job, which conveniently would contribute to verifiable product costs. Blockchain could also serve as the foundation for an airtight equilibrium pricing mechanism, in some form of bidding infrastructure.
The first problem blockchain has is scalability. In other words, can it physically handle the workload of administering all commerce? This problem is inherent to the technical design, and a solution will most likely be technical in nature. Very smart people are already wrestling with this.
The second problem is the arbitrary value of existing cryptocurrencies. Bitcoin is fashioned after dollars, and like dollars, is a phantom unit used to differentiate between the value of different person-hours. If a cryptocurrency was created (or repurposed) so that it represented nothing more than explicit person-hours (like a blockchain timebank) and was not derived from or expressed in terms of a fiat currency, then equality would be enforced and unassailable.
The third is the mining compensation model. If “money can be made” from mining, then you’re not doing it right. The mining compensation model must reduce down to a profitless/break even objective, where the cost of ownership of the life of the machines is simply reimbursed by doing the work of mining, along with the person-hours of labor involved. Apparently, there is a growing struggle between the coders and miners, as coders are working to equalize everyone via a bank-free system, but miners are working to accumulate and hoard the currency through the act of mining. Mining cannot be a profitable endeavor.