Chain of Transactions: How Blockchain Is Changing the Landscape of FinTech

Verma S.; Carrasco Suyo A.M.; Sharma J. · Sustainable and Advanced Applications of Blockchain in Smart Computational Technologies (2022) · DOI: 10.1201/9781003193425-4

Resumen

The fast pace of development of technology has disrupted almost all sphere of life, and businesses are no exception. New software, databases and systems have been launched for optimizing processes and help businesses to have a more agile management. The technology has changed the industrial age into silicon age, and the disruption is so apparent that a new term “FinTech” is extensively coined to distinguish the extensive use of technology in the world of finance. Blockchain is one such powerful technology, which has started a new era of internet – Internet-2.0 or Internet of Value. Blockchain is a decentralized database that consists of blocks that retain information, allowing the nodes composing the system to be aware of any data movement. Blockchain has been commonly associated with Bitcoin; however, nowadays it is not limited to just cryptocurrency. In fact, it is banking industry which uses 30% of blockchain application. Absence of intermediary, use of smart contract, etc. have ensured fast services and trust among the participants. It also democratizes money management and transforming the way stock market operations are conducted. Insurance is one such segment, where the blockchain technology is extensively used. But what is being sold as the “new future” comes with its own set of problems. Blockchain has a very high energy dependence. The process of integration and implementation of blockchain is difficult. This technology is very slow and costly, and scalability is always an issue. In this context, it is important to understand – what blockchain technology is, how it works, its features and how this technology is changing the landscape of FinTech while taken care of its drawbacks.