Current State and Development Trends of blockchain Technology in the Financial Sector
The article analyzes the main reasons for the slow adoption of blockchain technology, in particular, in the financial sector. The authors critically analyzed the main declared properties of blockchain technologies: trust, security, decentralization, immutable data storage, lack of intermediaries, ha...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | Russian |
| Published: |
Government of the Russian Federation, Financial University
2019-12-01
|
| Series: | Финансы: теория и практика |
| Subjects: | |
| Online Access: | https://financetp.fa.ru/jour/article/view/925 |
| _version_ | 1797878708989591552 |
|---|---|
| author | G. O. Krylov V. M. Seleznev |
| author_facet | G. O. Krylov V. M. Seleznev |
| author_sort | G. O. Krylov |
| collection | DOAJ |
| description | The article analyzes the main reasons for the slow adoption of blockchain technology, in particular, in the financial sector. The authors critically analyzed the main declared properties of blockchain technologies: trust, security, decentralization, immutable data storage, lack of intermediaries, hardware protection against attacks, and openness. The aim of the study are to show that these blockchain properties are overestimated, the expectations of its adoption are inflated, and the delays in its adaptation outside of cryptocurrencies, in particular, in the financial sector, are natural. The article is based on a methodology for the qualitative and quantitative analysis of scientific publications and statistical sources on the blockchain adaptation from the perspective of the theory of diffusion of innovations, the conditions and the specifics of economic and sociological approaches for consensus-building. The study resulted in the following new systemic findings. Blockchain and distributed ledgers are not fundamentally new technologies. In general, they do not have the properties of the immutable data storage, trust, anonymity, low transaction and adoption costs. All current consensus technologies have fundamental faults. Cryptocurrency technology is original, but it was a private experimental solution to a specific ideological problem of the libertarian political agenda. Consensus does not provide trust. Delayed blockchain adoption, in particular in traditional financial institutions, is natural, since the technology does not show better results than current digital solutions, and traditional economic institutions have greater public trust. The practical implications of the findings are that they may be used by investors. |
| first_indexed | 2024-04-10T02:37:30Z |
| format | Article |
| id | doaj.art-08f1343dbf9c428fb644a314af4b5776 |
| institution | Directory Open Access Journal |
| issn | 2587-5671 2587-7089 |
| language | Russian |
| last_indexed | 2024-04-10T02:37:30Z |
| publishDate | 2019-12-01 |
| publisher | Government of the Russian Federation, Financial University |
| record_format | Article |
| series | Финансы: теория и практика |
| spelling | doaj.art-08f1343dbf9c428fb644a314af4b57762023-03-13T07:49:29ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892019-12-01236263510.26794/2587-5671-2019-23-6-26-35746Current State and Development Trends of blockchain Technology in the Financial SectorG. O. Krylov0V. M. Seleznev1Финансовый университет; НИЯУ МИФИАО «Латкард»The article analyzes the main reasons for the slow adoption of blockchain technology, in particular, in the financial sector. The authors critically analyzed the main declared properties of blockchain technologies: trust, security, decentralization, immutable data storage, lack of intermediaries, hardware protection against attacks, and openness. The aim of the study are to show that these blockchain properties are overestimated, the expectations of its adoption are inflated, and the delays in its adaptation outside of cryptocurrencies, in particular, in the financial sector, are natural. The article is based on a methodology for the qualitative and quantitative analysis of scientific publications and statistical sources on the blockchain adaptation from the perspective of the theory of diffusion of innovations, the conditions and the specifics of economic and sociological approaches for consensus-building. The study resulted in the following new systemic findings. Blockchain and distributed ledgers are not fundamentally new technologies. In general, they do not have the properties of the immutable data storage, trust, anonymity, low transaction and adoption costs. All current consensus technologies have fundamental faults. Cryptocurrency technology is original, but it was a private experimental solution to a specific ideological problem of the libertarian political agenda. Consensus does not provide trust. Delayed blockchain adoption, in particular in traditional financial institutions, is natural, since the technology does not show better results than current digital solutions, and traditional economic institutions have greater public trust. The practical implications of the findings are that they may be used by investors.https://financetp.fa.ru/jour/article/view/925цифровая экономикаблокчейнбазовая технологияконсенсусвизантийская проблемадоказательство работыкриптовалютадовериесмарт-контракт |
| spellingShingle | G. O. Krylov V. M. Seleznev Current State and Development Trends of blockchain Technology in the Financial Sector Финансы: теория и практика цифровая экономика блокчейн базовая технология консенсус византийская проблема доказательство работы криптовалюта доверие смарт-контракт |
| title | Current State and Development Trends of blockchain Technology in the Financial Sector |
| title_full | Current State and Development Trends of blockchain Technology in the Financial Sector |
| title_fullStr | Current State and Development Trends of blockchain Technology in the Financial Sector |
| title_full_unstemmed | Current State and Development Trends of blockchain Technology in the Financial Sector |
| title_short | Current State and Development Trends of blockchain Technology in the Financial Sector |
| title_sort | current state and development trends of blockchain technology in the financial sector |
| topic | цифровая экономика блокчейн базовая технология консенсус византийская проблема доказательство работы криптовалюта доверие смарт-контракт |
| url | https://financetp.fa.ru/jour/article/view/925 |
| work_keys_str_mv | AT gokrylov currentstateanddevelopmenttrendsofblockchaintechnologyinthefinancialsector AT vmseleznev currentstateanddevelopmenttrendsofblockchaintechnologyinthefinancialsector |