IIARD International Institute of Academic Research and Development

IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH (IJBFR )

E-ISSN 2695-1886
P-ISSN 2672-4979
VOL. 10 NO. 7 2024
DOI: 10.56201/ijbfr.v10.no7.2024.pg48.60

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Blockchain Technology: Impacts in Financial Institutions in Nigeria

Udo Edemeka, Dr. Eno Ukpong, Dr. Uwem E. Uwah

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Abstract

The present study aims to explore the effects of blockchain technology on financial institutions by addressing three research objectives: the need for blockchain technology, the tools and applications, and the associated challenges. The study emphasises the need for greater transparency, lower transaction costs, and improved security, which drives the need for blockchain technology to be used in modernising financial systems. It looks at different blockchain tools and their applications within financial institutions, like real-time tracking and automated compliance through smart contracts. These tools provide significant benefits, like improved efficiency and integrity in financial transactions. However, the study also identifies important obstacles to the adoption of blockchain technology, including scalability and regulatory compliance issues. By examining these variables, the research offers a thorough picture of how blockchain technology is changing the financial industry and sheds light on both its potential for transformation and its limitations. The conclusions are intended to assist financial institutions in utilising blockchain technology to improve operational efficiency and security while navigating its drawbacks, and they suggest that they adopt advanced scaling technologies and investigate different consensus mechanisms to address limitations on transaction speed and throughput. They should also work with regulators to create clear, standardised guidelines that preserve the advantages of blockchain technology while facilitating compliance.

keywords:

Blockchain Technology, Revolutionized, Database, Crypto currencies

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