Year: 2024
Type: article
Abstract: Blockchain technology has emerged as a pivotal solution for enhancing security in financial transactions through its decentralized architecture. Traditional financial systems are often vulnerable to fraud, data breaches, and single points of failure due to centralization. Blockchain, with its distributed ledger system, ensures transparency, immutability, and security by verifying transactions across a network of nodes without relying on a central authority. This decentralized approach mitigates the risks associated with centralized databases, such as hacking or unauthorized access. Blockchain’s cryptographic algorithms safeguard transaction integrity and protect sensitive financial information. Smart contracts automate processes, reducing human error and the need for intermediaries, thereby increasing efficiency while lowering operational costs. Despite its benefits, challenges remain, including scalability issues, regulatory hurdles, and energy consumption. As blockchain technology continues to evolve, it holds the potential to revolutionize financial transactions, offering a robust, secure, and transparent framework for future financial systems. This paper explores the mechanisms behind blockchain security and its impact on modern financial infrastructures.
Source: Computer Fraud & Security
DOI: 10.52710/cfs.71
Author: Bhalchandra M Hardas
Institution: MIT World Peace University
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: bronze
OpenAlex ID: W4406966134