Flash loans are a great example of how blockchains enable new types of financial transactions that either aren't possible or are very difficult to do in a traditional financial setting.
If you identify an arbitrage opportunity in the market, you can atomically borrow a large sum of money to take advantage of the price difference. You also have the added assurance that if the arbitrage opportunity goes away before you can take advantage of it, the entire transaction fails and you only lose the Ethereum transaction fee. It's essentially risk-free arbitrage.
This paper [1] dives into detail about how these arbitrage mechanics play out on the blockchain, and how both arbitrageurs and miners manipulate transactions in order to make a profit.
If you identify an arbitrage opportunity in the market, you can atomically borrow a large sum of money to take advantage of the price difference. You also have the added assurance that if the arbitrage opportunity goes away before you can take advantage of it, the entire transaction fails and you only lose the Ethereum transaction fee. It's essentially risk-free arbitrage.
This paper [1] dives into detail about how these arbitrage mechanics play out on the blockchain, and how both arbitrageurs and miners manipulate transactions in order to make a profit.
[1] https://arxiv.org/abs/1904.05234