Sample Assignment on Blockchain

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Final Year Project1Blockchain and the Cross-Border PaymentsIndustryName:Sameer AhmedSupervisor:Dr Li Cunningham"I certify that I have complied with the guidelines on plagiarismoutlined in the Course Handbook in the production of this dissertation andthat it is my own, unaided work".Signature.................................................................................................Cass Business SchoolBSc(Hons) in Business ManagementStudent ID: 160016163
Final Year Project2AcknowledgmentFirstly, I would like to thank Almighty God for providing me the strength and guidance to partakeand complete such an endeavor.Next, I would like to acknowledge my supervisorDr. Li Cunninghamfor her constant help andsupport. This task would not have been possible without her guidance and efforts. Her constantguidance kept me on track and helped me produce a well-rounded and well researched academicpaper.I would also like to acknowledge my Parents. They have provided me constant support andencouragement throughout the time line of this research paper.Furthermore, I would like to thank my University, Cass Business School. The university hasprovided me with an invaluable set of skills and experience that has greatly helped me incompleting this research paper.Lastly, I would like to give credit to the banks and financial institutions that helped me in theresearch for this paper. These institutions provided invaluable data without which this researchpaper would not have been possible.
Final Year Project3AbstractThis research paper provides an insight into the concept of blockchain and how it is revolutionizingthe cross border payments industry. This research paper thus sets out to investigate whether adisruptive technology like blockchain proves to be a more viable and efficient solution to the evergrowing issues faced by the payments industry. Blockchain technology has the potential torevolutionize the payments industry. While people expect a lot from the technology, the real worldbenefits are still not clear. However, the technology is undergoing mass adoption by majorcompanies because of which its benefits are becoming clearer day by day.The research method used for this research paper is questionnaires. A number of people fromcompanies in the banking and finance industry that have adopted Blockchain were chosen to fillout the questionnaires. This gave the researcher a good overall view about whether Blockchain hashelped or made improvements in the Cross border payments and settlements category.After a thorough analysis of the authors research findings and an in-depth view of the existingliterature the author has concluded that blockchain technology is overall more efficient thanexisting technology in the cross border payments sector and is on track to mass adoption.
Final Year Project4Table of Contents1.0 Introduction ..................................................................................................................... 52.0 Literature Review ............................................................................................................. 82.1 The Cross Border Payments Industry .........................................................................................92.2 Problems with the current system .......................................................................................... 102.3 History of Blockchain .............................................................................................................. 112.4 Concept of Blockchain technology ........................................................................................... 122.5 Adoption of Blockchain in the Payments Industry .................................................................... 142.5a Adoption by Financial Bodies ............................................................................................. 162.5b Adoption in UK.................................................................................................................. 172.5c Adoption in China .............................................................................................................. 172.5d Adoption in America ......................................................................................................... 173.0 Methodology and Research Question ............................................................................. 183.1 Research Objectives ............................................................................................................... 193.2 Research Methodology ........................................................................................................... 193.3 Limitations ............................................................................................................................. 20.3.4 Deductive research vs Inductive Research .............................................................................. 213.5 Pilot Study.............................................................................................................................. 213.6 Alternative Methods .............................................................................................................. 213.7 Research ........................................................................................................................ 223.7a Limitations ........................................................................................................................... 223.8 Sample........................................................................................................................... 233.9 Ethical Considerations ............................................................................................................ 25
Final Year Project54.0 Introduction to Data Analysis ......................................................................................... 254.1 Data Analysis.......................................................................................................................... 264.2 Data Analysis- Questionnaires ................................................................................................ 265.0 General Discussion ......................................................................................................... 336.0 Conclusion ..................................................................................................................... 346.1 Summary of Results ................................................................................................................ 346.2 Initial Objectives: ................................................................................................................... 356.3 Future of Blockchain: .............................................................................................................. 356.4 Implications: .......................................................................................................................... 366.5 Recommendations for future researchers: .............................................................................. 37References .......................................................................................................................... 38Appendix ............................................................................................................................. 41
Final Year Project61.0 IntroductionEvery industry goes through technological advancements and innovation. One such industry thathas not experienced major innovation is the payments industry. In today’s world of digitization,cross border payments are still slow, costly and prone to security risks. Major companies havebeen investigating distributed ledger technology for quite some time now. When Bitcoin emergedin 2008, majority of people believed it would bring about a revolution in the financial world.However, as time passed by, its weakness as a currency became apparent because of which thefocus shifted to its underlying technology, Blockchain. Blockchain is a disruptive technology thatis slowly taking over. Blockchain is revolutionizing processes in a number of industries. Itstechnology can be applied to fields such as Data sharing, Digital IDs, Supply Chain, Paymentprocessing, etc. Also, Blockchain is viable for many industries such as auditing, gambling, andauthentication for events or luxury goods (Fanning & Centers, 2016).One of the most notable areas where Blockchain technology is becoming the standard is thegigantic payment’s industry.Experts predict that blockchain could save financial institutes at least$20 billion annually in costs (Fanning & Centers, 2016). This makes further exploration into thepotential of Blockchain crucial for companies and governments alike.This paper focuses on the application of blockchain in the cross border payments industry.Blockchain in simplified terms is a distributed ledger in which the members taking part in thenetwork share transaction information between the parties.The technology is a means of attaining a low cost way of sending payments that not only cutsdown the need for third party verification but also proves to be very secure. Thus, Blockchain is ameans of sending payments without the need for third party verification. Along with thisBlockchain technology results in only a fraction of the fees being charged as compared to the feescharged by existing institutions using other technology. Blockchain aims to shift the world to acashless system.Today, trillions of dollars’ exchanges hands around the world via an antiquatedand outdated system of slow payments and added fees. The current system used for cross borderpayments is ineffective, expensive and highly fragmented.If a person employed in New York wants to send money to his family in London. He might haveto pay a $35 flat wire transfer fee. Moreover, he will be required to pay additional fees amounting
Final Year Project7up to 7.4%. The bank chosen to transfer the money gets a cut, the person is also charged anexchange fee. It will take the recipient bank several days to register the transaction. This way thepayments business proves to be very profitable for banks leaving them with no incentive to reducetheir fees.In comparison to banks public blockchains cut down on the need for intermediaries to verifytransactions and allow people access to fast, cheap, and efficient payments.Blockchain technology is the underlying technology for cryptocurrencies. The cryptocurrencybitcoin takes anywhere from thirty-five min to sixteen to process transactions. Even though thisisn’t perfect, it is a big improvement as compared to the average 3-day processing time Banks take.Bitcoin transactions can take 40 minutes or up to 16 hoursin extreme casesto settle. That’sstill not perfect, but it represents a leg up from the average 3-day processing time for bank transfers.Transaction made through crypto currency are hard for government to monitor due to theirdecentralized nature. As a result of this it is very hard for governments or regulatory authorities toshut these transactions down. The diagram below provides a descriptiveimageintohowblockchain differs from existing systems.This research paper aims to explore the effects of blockchain in terms of cross border payments. Itaims to show a comparison of Blockchain Technology as compared to the technology being usedtoday (other than blockchain) for cross border payments. This paper also aims to shed light on
Final Year Project8adoption of blockchain in financial institutions for cross border payments around the world. Thefollowing points have been covered in this dissertation:-The current systems for cross border payments and its inherent issues-The role of blockchain in cross border payments-Wether or not Blockchain technology is helping revoloutionize the Cross BorderPayments Industry-An analysis based on findings collected through primary research from a hundredparticpants belonging to nine large scale financial institutions-A brief look into the future of blockchainThis dissertation has been sanctioned into four parts, mainly the ‘Introduction’, ‘LiteratureReview’, ‘Research methodology’ and ‘Data Analysis’. Recommendations and implications of theresearch has also been added after the conclusion. While introduction defines the concept ofBlockchain, the literature review gives a comprehensive look at the History, concept and adoptionof Blockchain technology. The research methodology explains a step by step approach taken bythe author to conduct primary research for this dissertation. The data anlysis provides an indepthresearch and discussion based on the findings of the primary research conducted. Lastly, theconclusion overall view of the findings and the results that have been achieved after analysing thefindings.2.0 Literature ReviewThis section provides an in-depth look into the available literature on blockchain and the paymentsindustry. This section will shed some light onto the existing literature found on the paymentsindustry and the current systems used for cross border payments. The section follows a step bystep procedure in explaining the cross border payment industry, issues with the current system, thehistory of blockchain, the concept of blockchain and adoption of blockchain technology.
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