A review paper on blockchain

Abstract

Blockchain technology and distributed ledgers are generating a lot of buzz and sparking a lot of initiatives in many sectors. The financial sector, on the other hand, is regarded as a major user of the blockchain idea. This is owing not only to the fact that the crypto-currency Bitcoin is the most well-known use of this technology, but also to significant process inefficiencies and a huge cost base problem unique to this sector. Furthermore, the financial crisis showed that even in financial services, determining the right current owner of an asset is not always feasible. Retracing ownership over a longer chain of changing buyers in global financial transaction services is even more difficult: when Bear Stearns, a US investment bank, failed in 2008 and was completely acquired by JP Morgan Chase, the number of shares offered to the acquirer was greater than the number of shares outstanding in Bear Stearns’ books. The accounting mistakes could not be resolved, and JP Morgan Chase was forced to face the consequences of extra (digital) shares.