IMPACT OF BLOCKCHAIN TECHNOLOGY IN THE FINANCIAL SECTOR
Kartik Tharad1 , Akshat Gupta2 , Dr Anuradha Chug3
[1] University School of Information, Communication and Technology ,GGSIPU, New Delhi, India [2]Netaji Subhas University of Technology, New Delhi, India [3]University School of Information, Communication and Technology ,GGSIPU, New Delhi, India
Abstract: As a result of recent trends in digitalization, many businesses and traditional methods of conducting business have either been wholly transformed or rendered entirely obsolete. Blockchain technology is the current innovation that has the potential to completely transform and disrupt many different industries, particularly those that are dependent on trust, such as the financial industry. The explosive growth of Bitcoin and other cryptocurrencies is principally responsible for the advent of blockchain technology and its accompanying rise in popularity. Nevertheless, the potential of this technology based on distributed ledgers considerably transcends those of cryptocurrencies. It is anticipated that the new technology would usher in a period of revolutionary change within the financial services industry. According to the projected trends, there is a comparison profile of the prospective advantages and constraints that blockchain technology may offer in the financial sector. However, several legal, technological, and ethical issues remain unresolved before the widespread adoption of blockchain technology. This literature analysis examines how Blockchain influences the financial industry. This paper accepts that blockchain technology can promote transparency, improve efficiency, reduce transaction risks, and cut financial industry transaction costs. Smart contracts are among the more ambitious blockchain applications among many other financial applications. An evolutionary leap in financial services may be feasible with the help of these conclusions and recommendations, which outline the
necessary conditions for the successful use of blockchain technology.
Keywords: Blockchain Technology, Banking, Financial Sector, Smart Contracts