Blockchain for smart finance: A review of architectures, integration trends and future research directions

Abstract

Blockchain’s use in smart finance is transforming financial technology. This detailed study examines blockchain’s role in decentralized governance and its potential to transform digital transactions. An enlightening introduction emphasizes blockchain’s importance in the ever-changing banking sector. Blockchain, originally connected with digital money, is now a versatile technology that has influenced banking. The literature review dominates, covering blockchain in finance studies on decentralized governance. Smart contracts and distributed ledger architecture are game-changers, promising transparency, security, and efficiency. Decentralized governance undermines centralized authority systems, creating a more inclusive and democratic financial landscape. The article highlights the adoption of blockchain by traditional banks and creative fintech startups as it explores blockchain’s impact on finance. Blockchain applications range from digital identity verification to supply chain financing on public, private, and group blockchains. The methodology section emphasizes the research methodologies’ robustness and completeness. A review of relevant studies and case studies as far as observed are capable of helping comprehend blockchain in smart finance. Blockchain architecture and decentralized governance in smart finance are explored in the article. A detailed review of blockchain systems and consensus processes illuminates their merits and cons. Decentralized finance (DeFi) and smart contracts show how blockchain technology might alter financial systems. Considering the changing regulatory landscape and the need for clear frameworks, challenges and prospects are examined. The paper suggests researching decentralized governance in financial services and its effects on existing banking models.