Prospects of Blockchain Technology in Finance Sustainability

Introduction

A blockchain is a kind of dispersed record innovation that consists of developing arrangements of records that are safely connected together utilizing cryptography. A blockchain was designed by an individual using the name Satoshi Nakamoto in 2008 to act as the public dispersed for bitcoin cryptographic money exchanges (Xu et al., 2019). The implementation of the blockchain in bitcoin made it the first digital currency to address the problem of double spending without the aid of a trusted source of power or central server.

The design of bitcoin has inspired other, transparent to the public, widely used blockchains and applications for digital money. One may think of the blockchain as a type of installation train. The monetary business is perceiving the ground breaking effect of blockchain innovation to create new income, convey process proficiency, further develop end-client experience and diminish risk in business tasks. The acceptance of blockchain into different exchange financing instruments gives an upper hand to banks also, their clients and also improves blockchain transactions in trade finance.

Blockchain with an increased degree of usefulness in exchange finance processes decreases handling time for reports, exchange expenses and expands level of transparency (Bogucharskov et al., 2018). Several financial institutions, ranging from banks and safety net suppliers to review and expert support businesses, are investing in blockchain-based agreements.

Finance is the backbone for the entire economy. Blockchain initially emerged as the technology that underpins virtual currencies like Bitcoin. In view of the fact that trust is established not by powerful delegates like banks and states but rather by network consensus, cryptography, coordinated effort, and clever programming, any remaining types of resources can be moved and kept safely, anonymously, and from one peer to another. (Tapscott & Tapscott, 2017). The present paper provides comprehensive review of past studies on role of blockchain technologies in financial services and in enhancing financial performances. The study will provide better insights to the managers of the financial institutions regarding the pros & cons of blockchain technology.