Blockchain technology in financial services: enhancing security, transparency, and efficiency in transactions and services
1 NNPC, Nigeria.
2 Independent Researcher, London, ON, Canada.
3 Information Security Advisor, Corporate Security, City of Calgary, Canada.
Review
Open Access Research Journal of Multidisciplinary Studies, 2024, 08(01), 026–035.
Article DOI: 10.53022/oarjms.2024.8.1.0042
Publication history:
Received on 31 May 2024; revised on 15 July 2024; accepted on 17 July 2024
Abstract:
Blockchain technology revolutionizes financial services by enhancing security, transparency, and efficiency in transactions and services. This paper examines the fundamental aspects of blockchain, including its core concepts and components, and explores its application in financial services. Blockchain's cryptographic hashing, decentralization, and immutability significantly improve security by preventing tampering and reducing fraud risks. Increased transparency through immutable audit trails, real-time updates, and open ledgers fosters trust among customers, regulators, and institutions. Furthermore, blockchain streamlines operations by automating processes, reducing intermediaries, and expediting transactions, resulting in substantial cost reductions and improved efficiency. Despite these advantages, challenges such as scalability, interoperability, regulatory uncertainty, and environmental impact must be addressed for widespread adoption. The prospects of blockchain in financial services are promising, with potential applications in decentralized finance, digital identity verification, and central bank digital currencies. This paper underscores the transformative potential of blockchain technology in creating a more secure, transparent, and efficient financial ecosystem.
Keywords:
Blockchain; Financial Services; Security; Transparency; Efficiency
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0