Blockchain Technology in Finance Industry
Seongwook Youn, Hyun‐chong Cho · The Transactions of The Korean Institute of Electrical Engineers · 2019
Blockchain is a peer-to-peer public ledger which guarantees the reliability of all the transactional record without a trusted third party. Basically, all the participants in the network create transactional record, examine the validity of the transaction, and keep the valid transactional record. The whole finance industry including banks and fintechs recognizes the value of the blockchain because of its efficiency and secure mechanism. In this paper, we explained the blockchain mechanism by providing its basic principles, strengths and weaknesses. Then, we provided what comes with it in the finance industry. Though there are still a few disadvantages such as persistence, and lack of the standard improvements and modifications in blockchain technology could overcome them and lead to the broader acceptance. Blockchain is definitely a disruptive technology in the financial system.