ABSTRACT:
A blockchain is a distributed ledger that creates a secure and decentralized infrastructure that enables the recording of resources in an immutable manner. Blockchain networks are peer-to-peer networks where a consensus algorithm enables decisions to be made without the need of a centralized authority. Through the network, two parties can exchange messages and resources in a secure way that is both verified and traceable. The resources that are exchanged can be anything that has value, be it tangible or intangible. Bitcoin, the project that introduced the world to the concept of Blockchain, was created by Satoshi Nakamoto [2]. A once novel phenomena now has become an integrated part of technology solutions around the world. In 2019, Gartner estimated that blockchains will undergo more mainstream adoption in 2023, thus leading to a generation of $3.1 trillion in new business value by 2030. The reason for this growth is due to multinational corporations and technology industry giants using blockchain to capture larger market shares [1]. There are currently several applications of blockchain that span a vast range of industries: healthcare [3], IoT [4], cyber security [5] and more. Due to the decentralization and transparency that blockchain provides, many companies that are interested in ensuring that their transaction are fast, secure, and traceable have turned to blockchain implementation to enable these qualities.
Among the various industries that want to implement blockchains for its many great properties, one industry that seems to have the ability to benefit greatly from a blockchain network is the Fintech sector. Currently, many Fintech companies employ a centralized, time-intensive, cost-intensive system to exercise many of the functions that they provide to their consumers. Traditional financial institutions are pouring money into Fintech companies and startups in order to leverage the innovation Fintech companies provide and thereby gain a competitive advantage over their peers. However, the primary source of income for these Fintech companies are individual customers as well as small to medium enterprises [6]. These traditional banking services are looking towards blockchain technology to improve the services they provide their clients. This incentivized the Fintech industry to begin to invest and attempt to rapidly adopt or develop their own blockchain infrastructure to capitalize on the desire of traditional financial institutions and increase their revenue handsomely.
This survey focuses on the use of blockchain to enhance the way services are offered to individuals and businesses by Fintech companies. This paper will discuss companies that are involved in the various sectors and how they leverage blockchain to realize their goal. It will also provide some critique on the issues that these companies face when trying to solve existing problems using blockchain.
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