Impact of Blockchain on FinTech and Payment Systems

Abstract

Purpose: FinTech, which is all about using technology in finance, has been changing a lot lately because of something called blockchain. Blockchain was first used for Bitcoin but has become important in finance and other areas. This paper argues that block chain technology addresses these concerns by enhancing the safety and speed of transactions. Through blockchain and tokenization, financial services are becoming more efficient and user-friendly. Methodology: This paper talks about theories and uses different kinds of sources like books, articles, and online materials. It focuses on Blockchain Technology, looking at its features, functions, and types. Different websites of different companies working on blockchain have been checked to see the impact of blockchain in today’s world. Findings: Blockchain technology is changing financial technology (FinTech) by making payments and transactions more secure and transparent. Its decentralized design improves security and benefits both consumers and financial institutions. Unique Contribution to theory, practice and policy(recommendations): The potential of blockchain interoperability protocols to securely transfer data and value between legacy systems and a myriad of blockchains, driving innovation and efficiency in the financial industry. The partnership between Swift, major financial institutions, and Chain link highlights the importance of making different blockchain networks work together smoothly. This is crucial for the next stage of digital asset adoption in the global financial system. It shows that even the largest banks and financial infrastructures can achieve interoperability between various blockchains with minimal resources.