Daffodil International University

Name: Sadman Sakib

ID: 191-15-12481
Section: A
Department: BSc in CSE

Course teacher: Sumit Kumar Banshal

Senior Lecturer Department of CSE

Course Code: CSE 326

Introduction:
Blockchain is currently one of the most important topics in both the academia and
industry world, mainly due to the possible effects that the continuing application
of this new technology could have. The adoption of this technology by FinTech
companies constitutes the next step towards the expansion of blockchain and its
sustainability. The paper conducts a mapping study on the research topics,
limitations, gaps and future trends of blockchain in FinTech companies. A total of
49 papers from a scientific database (Web of Science Core Collection) have been
analyzed. The results show a deep focus in challenges such as security, scalability,
legal and regulatory, privacy or latency, with proposed solutions still to be far
from being effective. A vast majority of the research is focused into finance and
banking sector, obviating other industries that could play a crucial role in the
further expansion of blockchain. This study can contribute to researchers as a
starting point for their investigation, as well as a source for recommendations on
future investigation directions regarding blockchain in the FinTech sector.

Literature Review:
Reference [1] FinTech research is fragmented and our understanding of FinTech
applications is still very limited. With the rapid growth of FinTech, we are
currently witnessing the evolution of financial intermediation, with
traditional intermediaries adopting new techniques and new intermediaries
beginning to emerge. These traditional and emergent intermediaries are
either competing or cooperating. Industrial practices are moving much
faster than our academic understanding, with new phenomena that cannot
be fully explained by existing studies. We are blueprinting a new era for the
financial finical industry, but we have very limited research to support us in
doing so. There is a range of unsolved puzzles that urgently need to be
addressed. For instance, in the case of crowdfunding, existing studies fail to
address whether and to what extent peer-to-peer platforms can really
differentiate themselves from traditional funding channels. One of the main
issues that persist in peer-to-peer platforms is information asymmetry; it
would be very interesting to see how we might adopt the blockchain
 innovation in peer-to-peer platforms to mitigate this information
asymmetry problem.

Reference [2]
The banking system has adapted to clients’ requirements, setting short-term and
medium-term objectives for digitalization. Banks should be present in the
online environment to increase awareness of their brands and always be
available for their customers. 5G technology and voice banking will
increasingly contribute to a successful future for banks.Furthermore,
fintech companies rely on a whole new world. This world is defined by five
technological wonders: M2M, IoT, big data, artificial intelligence and
machine learning. Crowdfunding together with peer-to-peer lending are
modern alternatives for financing, obtaining money directly from
individuals or companies and allowing borrowers to easily connect with
investors. Likewise, Elrond is an outstanding example of digital currencies in
general, but also of cryptocurrencies in particular. Designed in Sibiu, Elrond
is now a worldwide success.Hence, it is advisable for the digital world to
continue to develop and increase its global reach. The more countries enter
into this technological revolution, the more benefits will be seen. Banks and
fintech companies should be up to date with the wide array of information
technology in order to make use of it properly.Concerning the
abovementioned subject, it is recommended to make an analysis of the
global environment and the developments in each country, discovering the
elements that fintech companies and also banks should apply in order to
achieve recognition and appreciation. Discussing the issue with specialists
can be of real help in understanding accurately the digital transformation.
Furthermore, it is imperative to keep an eye on the news of the moment as
it is a fast changing environment.
Reference [3]
The classification of articles on Bitcoin, Blockchain and Fintech by application
domain or context is presented in Table 7, 8, and 9. The search of databases
found 109 publications that address the concept of Bitcoin. Most publications on
the subject focused on financial digital-payment services and systems (21.10% of
publications), and others dealt with law, taxation, and legal regulation (18.35% of
publications); accounting and financial regulation (11.01%); and business and
economic concepts, models, and theories (10.09%). The remaining articles on
Bitcoin relate to financial markets (7.34%); cryptocurrency markets (4.59%);
technology and innovation (4.59%); e-commerce, online market places, supply
chains, transport, and logistics (4.59%); gambling and lottery (1.83%); mining
(1.83%); social phenomena (1.83%); and teaching pedagogy (0.92%). Blockchain
was the main topic of 43 articles. The applications of Blockchain in computing and
technology were the focus of most publications (27.91%), followed by its
applications in business, economics, and finance (25.58%). While a significant
portion of articles covered blockchain applications in industry processes (13.95%)
and contractual agreements (11.63%), other blockchain application areas were
governance and regulation (6.98%), registry and records management (6.98%),
digital identification and authentication (4.65%), and environmental sustainability
(2.33%).
Finally, only 10 articles dealt with Fintech, 40% of them concerned with the
applications of Fintech in banking and financial services, 40% covering
technological development and computing, and the remaining 20% addressing
the applications of Fintech in the business ecosystem.
Reference [4]
Since, 2011 the volume of FinTech deals in London region has increased by three
times and As per Lawrence (2017), the use of smart contracts as replacement of
the financial contracts and services cost can be minimized by up to 95% and
Islamic Banking can be revolutionized
Saadiqin is a Shariah compliant industrial financial solution and claims 80%
reduction in outstanding issues, 50% reduction of your close-of-business times
and 99% efficiency in operation (Saadiqin, 2020)
Financial contracts and services cost can be minimized by up to 95%is more than
50% of the all European activity (Skan, 2014)

Reference [5]
The results of the search performed show that banking and finance are the main
topics of the current research in blockchain applied to FinTech, being in 24.5% the
main topic (12 papers). It is not surprising that a wide spectrum of academic
research has focused on the banking and finance sector, as blockchain started
precisely in these areas. The second most talked-about subject is blockchain and
its applications in a wide manner, from the introduction of the technology to the
application of the ledger technology to FinTech companies, with 16.3% (8 papers).
The third and fourth topics with the highest amount of interest are
cryptocurrencies with 10.2% (5 papers) and blockchain software development,
with 8.2% (4 papers).
Blockchain is a decentralized network environment with a shared ledger, in which
all transactions are publicly available to its users. Throughout a set of protocols
and cryptographic techniques, it provides privacy, security, transparency, and
anonymity. Nevertheless, these benefits also set up a list of challenges and
limitations that need to be explored. In order to comprehend the academic
literature available on blockchain, a systematic mapping study was carried out.
The objective of this mapping study was to scrutinize the current status, topics
and challenges and limitation of blockchain technology in FinTech companies. A
total of 49 papers from the Web of Science Core Collection database were
examined. The results show a deep focus in challenges such as security,
scalability, legal and regulatory, privacy, latency, cyber-risks, or technology
development. Although these issues are identified, the proposed solutions are still
far from being effective.
Reference [6]
FinTech research is fragmented and our understanding of FinTech applications is
still very limited. With the rapid growth of FinTech, we are currently witnessing
the evolution of financial intermediation, with traditional intermediaries adopting
new techniques and new intermediaries beginning to emerge. These traditional
and emergent intermediaries are either competing or cooperating. Industrial
practices are moving much faster than our academic understanding, with new
phenomena that cannot be fully explained by existing studies. We are
blueprinting a new era for the financial finical industry, but we have very limited
research to support us in doing so. There is a range of unsolved puzzles that
urgently need to be addressed. For instance, in the case of crowdfunding, existing
studies fail to address whether and to what extent peer-to-peer platforms can
really differentiate themselves from traditional funding channels. One of the main
issues that persist in peer-to-peer platforms is information asymmetry; it would
be very interesting to see how we might adopt the blockchain innovation in peer-
to-peer platforms to mitigate this information asymmetry problem.

Conclusion & Future work:

Blockchain is arguably the most significant innovation since the internet with
individuals, companies and even governments embracing the technology. An
appealing feature of blockchain technology is smart contracts. Today, smart
contracts are available to optimise many financial and business processes. On
blockchain, smart contracts can streamline complex processes that involve
several intermediaries and this has led to them becoming one of the most popular
and talked about subjects in the blockchain industry.
Key features of smart contracts
This code defines the mechanisms of the transaction and is the final arbiter of the
terms. The readable terms of a contract are compiled into computer code that
can run on a network. A network of computers executes the actions once
predetermined conditions have been met and verified. The blockchain is then
updated when the transaction is completed.
Once the transaction is included in a block, the smart contract is initiated and
irrevocable. Transactions between parties in current systems occur in acentralised
form, however, this involves high transaction fees and security concerns.
Introducing a transparent way to do business
With blockchain, the goal of a smart contract is to carry out a set of instructions
that end up simplifying business and trade between anonymous parties.
Blockchain is a distributed database that records all transactions that have ever
occurred in a network. By scaling down the formality and costs associated with
traditional methods, smart contracts have become a foundational technology in
blockchain and a key element of the Ethereum network. Ethereum is the most
common blockchain platform used for coding and proceeding smart contracts
since its language supports the Turing-completeness feature which facilitates the
creation of more advanced and customised contracts.
Blockchain is the perfect environment for smart contracts as the data can never
be lost, modified or deleted.
A disruptive financial technology innovation
The validity of smart contracts in financial technology is becoming more and more
apparent. This new form of agreement improves the accuracy and verification of
worldwide transactions by combining two simple concepts into one powerful
idea. The most widespread use of smart contracts remains in the financial
industry since they solve the issue of trust in conditional transactions. Payment
processing, clearing/settlement of financial instruments, trade finance, as well as
regulatory technology all benefit greatly from smart contracts.
Already, with fintech giants like PayPal already tapping into cryptocurrencies, we
may see digital finance companies transform into something new. Without
compromising on credibility, smart contracts offer transparency within FinTech.
Smart contracts automatically execute transactions following predetermined rules
thus transactions are encrypted and stored on a distributed ledger intended to be
immutable. This has clear potential for remaking the world of financial contracts.

Automating the flow of digital assets and payments can foster new products and
business models within FinTech. Blockchain smart contracts decrease monitoring
and enforcement costs, meaning that financial institutions do not need to rely so
heavily on post-trade financial market infrastructures. Overall, blockchain smart
contracts certainly have the power to transform the way agreements are made
across various industries, particularly within FinTech.
Reference

1
Bitcoin, Blockchain, and FinTech: A Systematic Review and Case Studies in
the Supply Chain
Samuel Fosso Wambaa*, Jean Robert Kala Kamdjougb, Ransome Epie
Bawackc, John G. Keoghd
a*Department of Information, Operations and Management Sciences,
Toulouse Business School, Toulouse, France, s.fosso-wamba@tbs-
education.fr;
GRIAGES, Department of Management and Information Systems, Catholic
University of Central Africa, Yaoundé, Cameroon, jrkala@gmail.com;
jrkala@ucac-icy-fssg.net;
GRIAGES, Department of Management and Information Systems, Catholic
University of Central Africa, Yaoundé, Cameroon,
ransome.bawack@gmail.com;
dHenley Business School, University of Reading, UK, john@shantalla.org.

2
Blockchain Disrupting Fintech and the Banking System
Eduard Alexandru Stoica * and Daria Maria Sitea
Faculty of Economic Sciences, Lucian Blaga University of Sibiu, 550324 Sibiu,
Romania; daria.sitea@ulbsibiu.ro

3
Disruption of financial intermediation by FinTech: a
review on crowdfunding and blockchain
Cynthia Weiyi Cai
Charles Sturt University Melbourne Study Group Centre, Melbourne, VIC,
Australia
4
FinTech, Blockchain and Islamic Finance:
Mustafa Raza Rabbani
Shahnawaz Khan
Eleftherios I. Thalassinos
5
Blockchain in FinTech: A Mapping Study
Simon Fernandez-Vazquez , Rafael Rosillo
, David De La Fuente and Paolo Priore
6.
Blockchain The Future of Fintech
A. Can Inci