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- Title
Blockchain Ecosystem in the Financial Services Industry.
- Authors
Petrov, Dancho
- Abstract
The emergence of disruptive technologies such as blockchain in the financial services industry is causing „high tension" among systemic market players. Leading financial institutions are experiencing increasing discomfort with the entry of new high-tech competitors into niches that they have traditionally dominated for centuries. The advent of blockchain as a new high-tech ecosystem could not only change the institutional profile of the financial industry but also alter the nature of financial deals, reshape the trading patterns and relationships between counterparties. The research focus of this paper includes questions such as: is the blockchain ecosystem capable of dramatically disrupting the financial services industry, which segments are likely to be affected, and what is the expected nature of the changes. The methodological toolkit used is based on literature review and use cases analysis that examines the expected positioning of blockchain in selected segments of the financial industry. The interaction between the distributed ledger and smart contracts as components of the blockchain ecosystem provides good opportunities for optimizing financial market trading. The results of the study show that blockchain technology application is expected to lead to automation of key processes, increased security, transparency, speed in transaction execution and elimination of unnecessary financial intermediation. The analysis also shows that blockchain's application is facing technological, legal, regulatory and ethical challenges and barriers.
- Subjects
FINANCIAL services industry; BLOCKCHAINS; ECOSYSTEM services; SMART cities; INTERMEDIATION (Finance); DISRUPTIVE innovations
- Publication
FAIMA Business & Management Journal, 2020, Vol 8, Issue 1, p19
- ISSN
2344-4088
- Publication type
Article