Finance Technology: Blockchain and its Potential in the Financial Sector

Running head: FINANCE TECHNOLOGY
FINANCE TECHNOLOGY
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2FINANCE TECHNOLOGY
Table of Contents
Introduction................................................................................................................................3
Service innovation......................................................................................................................3
Concept..................................................................................................................................3
Practices.................................................................................................................................4
Utilization...............................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

3FINANCE TECHNOLOGY
Introduction
Most of the parties, which are related to the financial sector, have a grasp of the
concept, which is, relate to the crypto currencies and bit coin. These aspects work on the
technology of block chain. The technology is digital and distributed ledger of transaction with
identical copies, which are maintained at both ends of the network members of the computer.
The process of reviewing of the previous entries and record of the new ones can be achieved
quite easily. The transaction are recorded one by one in a chain of blocks (the ‘block chain’)
Service innovation
The concept of service innovation directly means the way the customers are being
served to directly gain greater value and deliver more revenue relating to the organization.
Ones the concept of service innovation is taken into consideration it can be very much
beneficial and easy to implement and design own system. The prospective, which can apply
service innovation to the concept of blockchain, are stated below:
Concept
The key concept which can be applied to the concept if the Blockchain based ledger,
those which would enables efficiency future gain are distributed nature of the ledger, its
characteristics of immutability and the existence of an agreed upon mechanism of consensus.
The concept makes it possible to automate the transactions providing close to real time
settlement while the concept of control against fraud (Ølnes, Ubacht & Janssen, 2017). These
benefits do not directly depend on the exact technical implementation of any block chain. The
concept of the implementation would be working down in the near coming years. However, it
can be stated that the overview of how a blockchain works will be helping to inform about
the discussion about the potential relating to the application of the blockchain and the
challenges, which may arise in this case (Pilkington, 2016).