Every transaction has a context

First-generation blockchains are able to store transactions. Every transaction basically says how many coins were transferred from address A to address B and when was it. There is no context that would say something more about transactions. Nobody knows who owns addresses, the reason why transactions were sent, and whether everything was fine regarding the interaction of counterparties. Only participants of a transaction know the context.

You probably would not expect more from a transaction network. PayPal does basically the same job. It just transfers money from bank account address to bank account address and does not care about the context. The difference is that third parties know participants but the principle is similar. 

People are able to consume traditional financial services of third parties under the condition that they trust them. If they want to buy stuff on Amazon they just send money and they will receive ordered gadgets. If they want insurance they just send money to an insurance company and they will be insured. If they wish to borrow money they just ask a bank, put something into collateral and regularly pay off the loan. Every financial interaction requires sending transactions. There are made external agreements between parties and as a result, transactions are sent. The contexts of transactions are known only by parties that have made agreements. 

Traditional bank transactions are able to bear some additional information that specifies their context. For example, a receiver of a transaction can ask the sender to insert some number into it. The number is used by the receiver to understand the context and properly handle sending money. For example, the number can be related to the ID of an agreement between parties. Is that important? Definitely. When auditors come to a bank they might wish to understand all transactions that were received by the bank. It must be easy to explain why and from whom a given transaction was accepted. In some cases, the transaction contexts inside transactions are a necessity. Transaction context can be useful between friends or business partners. If they wish to insert some information into a transaction they can easily do so. It can even be a piece of text.

It is actually very easy to insert the context information into traditional transactions. If transaction context is useful in the traditional financial world then it would also be useful in blockchain transactions. Moreover, it must be easy for users to insert the context via blockchain wallets.