Abstract:
Blockchain technology has been emerging an innovation restructuring financial
transaction cutting off costs making it important for the financial industry to estimate
the opportunities offered and challenges posed by this technology. Financial
transactions could be renovated by this innovation while paving the way for new
entrants and extending the horizon of established financial organizations. Before
realizing the benefits of this technology, startup as well as existing businesses should
find ways to address challenges in terms of technology, regulations and adoption.
Although this technology is a coffer of new possibilities, the impact of this on
transactions especially in financial domain is fragmented in literature having puny
empirical evidences and inadequate theoretical explanations. This phenomenon makes
it difficult for managers, due to less guidance available, in the financial industry to
design and formulate strategy to make use of the blockchain technology on the process
of financial transactions. In order to address this phenomenon, this study tried to find
out the proclaimed impacts on transactions in terms of finance having stress on
transaction cost, verification of assets, record keeping and privacy of data. To
investigate the theme this study adopted a pluralist approach including firstly analysis
of existing literature on blockchain technology in the financial transaction domain,
secondly perception analysis built on interviews with experts in the subject, financial
executives and researchers, and thirdly interpretation of theories making use of
transaction cost theory. Hence, this study synthesized insights from these three methods
in order to deliver guidance for financial organizations on the opportunities offered and
challenges posed by the blockchain technology.
