Innovative Applications and Implementation Challenges of Blockchain Technology in the Financial Sector

Abstract

Blockchain use in various industries improves the standard of services provided to end users and benefits society as a whole. The chapter discusses the innovative use of blockchain technology in the financial sector, including know your customer, cross-border payments, clearing and settlements in the insurance sector, trade finance platforms, and digital identity verification. On the other hand, while blockchain technology has the potential to be a very competitive and “imaginative” technology, it is important to address concerns with its implementation, such as the cost of adoption, energy consumption, cybersecurity, interoperability, scalability, latency, and so on. The findings of this study will give the required information to the government, decision-makers, and consumers to help them understand the applications and difficulties of implementing blockchain technology in the financial sector.