The impact of blockchain and distributed ledger technology on financial services

Abstract

Blockchain and distributed ledger are terms that were born only in the last decade. Their appearance and growing popularity are associated primarily with the rapid development of Bitcoin and other cryptocurrencies. However, the capabilities of blockchain technology based on distributed ledger far outweigh the cryptocurrencies. The new technology is expected to trigger revolutionary changes in the financial services sector. The comparative profile of potential possibilities of and limitations on the application of blockchain in the financial sphere frames the nature of expected changes. Nevertheless, there are still a number of unresolved issues of technological, legal and ethical nature ahead of the mass application of blockchain technology. The formulated conclusions and recommendations provide guidance for successfully overcoming objective barriers to the application of blockchain and summarizing the prerequisites for a possible evolutionary leap in the development of the financial services industry.