Revolutionizing the Banking Industry: The Impact of Blockchain Technology on Financial Services

Blockchain technology represents a significant innovation with far-reaching implications across multiple industries, having initially emerged as the backbone of Bitcoin to enable secure, decentralized digital transactions. Its decentralized structure, which replaces centralized databases with multiple shared copies across nodes, enhances security and reduces the risk of data breaches. Despite its growing use in banking, finance, supply chains, and other sectors, a gap exists in fully understanding its transformative potential in improving business processes. This research aims to analyze blockchain’s impact on the security, efficiency, and transparency of digital transactions. By employing a comparative analysis of blockchain applications across industries, we find that its decentralized, encrypted ledger system significantly reduces fraud risk and improves transactional efficiency. These results highlight blockchain’s role as a critical tool for future digital economies, with broader implications for enhancing trust and security in various sectors.

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Publication Details

Journal
American Journal of Economics and Business Management
Published
2024-09-26
DOI
https://doi.org/10.31150/ajebm.v7i9.2939
Primary Topic
FinTech, Crowdfunding, Digital Finance
Type
article
Field-Weighted Citation Impact
0.00
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article

Revolutionizing the Banking Industry: The Impact of Blockchain Technology on Financial Services

S. Suman Rajest, R. Regin
American Journal of Economics and Business Management
FinTech, Crowdfunding, Digital Finance
article

Revolutionizing the Banking Industry: The Impact of Blockchain Technology on Financial Services

S. Suman Rajest, R. Regin
article en

Abstract

Blockchain technology represents a significant innovation with far-reaching implications across multiple industries, having initially emerged as the backbone of Bitcoin to enable secure, decentralized digital transactions. Its decentralized structure, which replaces centralized databases with multiple shared copies across nodes, enhances security and reduces the risk of data breaches. Despite its growing use in banking, finance, supply chains, and other sectors, a gap exists in fully understanding its transformative potential in improving business processes. This research aims to analyze blockchain’s impact on the security, efficiency, and transparency of digital transactions. By employing a comparative analysis of blockchain applications across industries, we find that its decentralized, encrypted ledger system significantly reduces fraud risk and improves transactional efficiency. These results highlight blockchain’s role as a critical tool for future digital economies, with broader implications for enhancing trust and security in various sectors.

American Journal of Economics and Business ManagementVol. 7(9)
SRM Institute of Science and Technology (IN)
Openalex Percentile: Top 75%
FinTech, Crowdfunding, Digital Finance
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