Impact of Blockchain Technology in the Financial Market

Abstract

Blockchain is a distributed ledger system that uses a decentralized consensus protocol to record transactions securely over a network of computers. Unlike established centralized systems, blockchain runs on a peer to-peer network with every participant (node) having access to the entire database and its full history. This, then, has the advantage of making the system more resilient to corruption or hacking. The ledger (transaction history) is replicated across multiple participants on the hardware framework. Transparency: All participants have the same copy of the blockchain (without a need for a central authority). Autonomous agreements are contracts that execute themselves because their content is directly encoded in them. They apply and effectuate the conditions of a contract without intermediaries when certain predefined stipulations come into play. The decentralized and secure method in which cryptocurrencies operate is through the mechanism of blockchain, which is widely acknowledged. It can simplify the process, decrease fraud, and make it safer. This study pursues a comprehensive survey of the diversified use cases of blockchain throughout the global financial ecosystem. This chapter is an effort to shed light on the Strengths, Weaknesses, Opportunities, and Threats of blockchain technology in financial services.