I really like this idea, and I know of a couple of smaller universities that can't afford the fees for journal databases and are making the decision to stop payments on any that are not used by many different researchers.
This is a huge problem, and one that is great for blockchain, but it is not the largest challenge to science. In my opinion the largest problem is the teaching of science to the youngest of us, and teach that the limitation of scientific learning is exactly the its strength. If you can't develop a test that will disprove the theory, it is no longer science.
Having a truly open and distributed journal system is a great first step for those that are working diligently to make the world better for everyone; however it will do little to teach the layperson the importance of that work.
Great point! This is where the second part of the idea comes in. The peer-reviewed blog part of the project will be aimed at a broader audience and posts will be designed to be as accessible as possible, so hopefully, it will help serve to educate the wider public about science.