Abstract
Blockchain is a shared ledger database, in a distributed network, which allows two parties to execute a transaction securely without any intermediary and records the transaction permanently. It maintains a list of chronologically ordered records called blocks. Each block is linked to a previous block, thus forming a Blockchain. Smart contracts can be made with Blockchain technology where the provisions implied by a contract are embedded in the Blockchain to be executed with the transaction. Blockchain could be applied in many areas in financial services like trade finance, payments, securities settlement, regulatory compliance, etc. The Blockchain technology can significantly bring down the costs and reduce in efficiencies in the financial sector. This paper seeks to investigate the potential of the Blockchain application by examining exactly what it is, the most likely areas within financial services where it could be applied, the current state of application of Blockchain in the industry, the implication of
the technology on the current financial market participants, the multiple uses to which it can be put, the challenges in implementing the technology in the financial markets, the future prospects of the Blockchain technology.
Keywords: Blockchain, Emerging Trends, Financial Services.
References
1) Swan, M (2015). Blockchain: Blueprint for a
New Economy
2) The Hutch Report – Insights, Ideas and Tools for
the New Economy
3) Top trends in Capital Markets 2017 – Capgemini