The Applications and Impact of the Blockchain Technology: A Focus on the Financial Sector

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School of Business | Bachelor's thesis
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Date

2018

Major/Subject

Mcode

Degree programme

Tieto- ja palvelujohtaminen

Language

en

Pages

5+34

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Abstract

The blockchain technology is understood to be the next most disruptive technology after the Internet. Initially, it was introduced in 2009 together with the idea of Bitcoin, a peer-to-peer online cryptocurrency obviating any backing or third parties. While attention is shifting from Bitcoin to the blockchain technology’s concept and its many purposes aside from online currencies, it now has the possibility to disrupt industries and companies of all sizes. However, the research on this topic is in its early stages. This is taken into account as the thesis examines cryptocurrencies in a more detailed manner. The aim of this thesis is to first explain the blockchain technology, the way it functions and the principal commands it uses. This will then allow more profoundly to explore and perceive the main applications of the technology. To comprehensively study the topic, this thesis will provide knowledge of the blockchain technology’s current challenges. Based on this information, the conclusion can be derived to answer what is the impact of the blockchain technology. The main findings from this literature review prove that the blockchain technology can provide trust between unidentified parties and eliminate the third parties in their entirety as the manual work needed to perform basic functions seems to decrease, as some of the work is automated. The distributed nature of the ledger technology allows data and record history storage, disabling the possible retroactive tampering and creates possibilities for companies, governments and individuals to secure their data in a more effortless manner. As my contribution, the content of this thesis has inductively been classified into four main categories to provide enough understanding and an answer for this research.

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Thesis advisor

Ali Yawar, Sadaat

Keywords

blockchain technology, distributed ledger technology, cryptocurrency, mining, token, initial coin offering

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