FINTECH APPLICATION OF BLOCKCHAIN

Abstract

Blockchain technology has the ability to replace traditional foundations for decentralized business models by lowering transaction costs, fostering distributed trust, and empowering decentralized platforms. Blockchain technology enables the emergence of decentralized financial services in the financial sector, which are typically more decentralized, innovative, borderless, and transparent. Decentralized financial services, enabled by blockchain technology, have the potential to increase financial inclusion, facilitate open access, stimulate permissionless innovation, etc. Additionally, blockchain technology has been promoted as a potential remedy for long-standing trust concerns between trading partners in trade finance. In this research paper, we explore potential drawbacks and limitations of current models while also assessing the advantages of decentralized finance. As a new area of Fintech, decentralized finance may redefine the structure of modern finance and open up new opportunities for innovation while displaying both the perks and downside of decentralized business models.