The article entitled “Blockchain Technology in Finance” by Treleaven, Brown, & Yang (2017) explores more about the unlikely origins, impacts, implementation challenges, and potential of blockchain technology in the banking and financial services industry. The article’s authors recognize the disruptive nature of blockchain technology as well as its impacts in different fields and enormous potential. Based on this writing, blockchain technology is a system that provides users with an effective way of ordering transactions in a distributed ledger and offers a record of consensus with a cryptographic audit trail maintained and validated by multiple nodes (Treleaven, Brown, & Yang, 2017). There are two components of blockchain, which include distributed-ledger technology (DLT) and smart contracts. DLT is a decentralized, shared, replicated, and synchronized record of transactions that are secured by cryptographic sealing (Treleaven, Brown, & Yang, 2017). On the other hand, smart contract are the rules that participants have collectively agreed upon to govern the evolution of facts in the distributed ledger (Treleaven, Brown, & Yang, 2017).
Blockchain technology has important properties that makes it a very important discovery for banking and financial-services markets. In particular, the technology handles blocks of uniquely identified and linked financial transaction records in chains. Having such a system ensures that there is independent verification of transactions. Also, having such a system help in ensuring that financial records comply with relevant legal agreements. What is more, the system significantly boosts security of financial records by ensuring that each block is chained to the previous one and is sealed cryptographically. Such a system is ideal for banking and financial-services markets because it offers needed resilience, flexibility and with the ability to operate as a decentralized network, and reliable. ]The technology is ideal for banking and financial-services markets because of its enhanced integrity and way of eliminating third party in execution of transactions.
The article recognizes that various authors have identified blockchain technology as an important innovation in the banking and financial services domain. For instance, Tomaso Aste, Paolo Tasca, and Tiziana observed that blockchain technology decentralized control over currency, which shifted user trust from humans to machines (Treleaven, Brown, & Yang, 2017). Such a paradigm shifts totally changed how people view and use currencies through the support of technology. Also, the author of the article highlights opinions of Chris Khan and his colleagues. According to Chris Khan and his colleagues, blockchain technology provides a model for collaborative innovation, which allows it to adapt uniquely to changing needs of the banking and financial-services markets. The authors highlights “Validation and Verification of Smart Contracts: A Research Agenda” by Daniele Magazzeni, Peter McBurney, and William Nash, which maintains that blockchain is a disruptive technology in the banking and financial-services markets because of its ability to oversee execution of legal transactions automatically and in real time (Treleaven, Brown, & Yang, 2017). The article also highlights the potential of blockchain technology to evolve in order to meet the changing needs of different users and industries. Based on the article, there is high likelihood that blockchain technology will get better and more popular given that it is continuously being improved and widely used to improve integrity, safety, and processing of transactions through technology.
I chose this particular article because it has important information on how blockchain technology can be used to create major opportunities in the contemporary world. It puts attention to how blockchain technology has been effectively used to create a decentralized, safe, and efficient system for recording transactions in the banking and financial-services markets that promote data integrity. Today, cyber security is increasingly becoming a serious problem. Organizations grappling with cyber security issues can turn to blockchain technology as a way of ensuring that their data are safe and protected from third-party encroachment. This particular column provides important information on how blockchain technology can be adopted for the same. Also, it is interesting because it emphasizes the role of blockchain technology in the success of cryptocurrencies. There is high likelihood that continued evolution of blockchain technology will significantly improve recording, processing, safety, and integrity of transactions in the banking and financial-services markets.
References
Treleaven, P., Brown, R. J. C., & Yang, D. B. (2017). Blockchain Technology in Finance. IEEE Computer, 50(9), 14–17. https://doi.org/10.1109/mc.2017.3571047