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How Blockchain Is Changing Finance.edited

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Computer Science
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Auburn University Main Campus
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Running head: HOW BLOCKCHAIN IS CHANGING FINANCE 1
How Blockchain Is Changing Finance
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HOW BLOCKCHAIN IS CHANGING FINANCE 2
Introduction
In the globe every day, there are trillions of dollars transacted. The finance system is faced
with many challenges that include huge transaction costs and related delays. The blockchain has
greatly helped the finance sector by reducing the paperwork in transactions and also reduced
transaction costs. Blockchain is seen as the solution to finance-related problems soon with it
expected to have a greater impact on our lives. Blockchain was developed as a technology
behind the cryptocurrency such as Bitcoin. It can be described as a new modern way of record-
keeping, with many people moving from the ledgers to blockchain digital recording.
How Blockchain Is Changing Finance
Blockchain has brought about the distribution of the database, with each party having access
to the database. In this case, the data or information is not controlled by a single party, with each
party verifying the records of its transaction partners directly without the need of any
intermediary. The transmission in the blockchain is through peer to peer transmission. In
addition to that, every transaction is done in the blockchain, and its value has a unique numeric
address, which is used in the identification of the transaction; hence users of blockchain can
decide on transparency or pseudonymity of their transactions. Moreover, a transaction that has
taken place can not be changed in any way because they are linked to transaction records in the
database. These records are available on a permanent basis and to all networks. Blockchain also
uses computational logic and can be programmed to trigger transactions between nodes
automatically ( Alex & Don, 2017).
Before the invention of blockchain, People were not able to transact without verifying their
identities or addresses to the banking institution. However, the blockchain has made it possible

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Running head: HOW BLOCKCHAIN IS CHANGING FINANCE How Blockchain Is Changing Finance Student’s Name Institution Affiliation 1 HOW BLOCKCHAIN IS CHANGING FINANCE 2 Introduction In the globe every day, there are trillions of dollars transacted. The finance system is faced with many challenges that include huge transaction costs and related delays. The blockchain has greatly helped the finance sector by reducing the paperwork in transactions and also reduced transaction costs. Blockchain is seen as the solution to finance-related problems soon with it expected to have a greater impact on our lives. Blockchain was developed as a technology behind the cryptocurrency such as Bitcoin. It can be described as a new modern way of recordkeeping, with many people moving from the ledgers to blockchain digital recording. How Blockchain Is Changing Finance Blockchain has brought about the distribution of the database, with each party having access to the database. In this case, the data or information is not controlled by a single party, with each party verifying the records of its transaction partners directly without the need of any intermediary. The transmission in the blockchain is thr ...
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