I need a research Proposal for the topic “Use of Blockchain Technology in Finance”.
The Research Proposal should be in the below format.
Table of Contents
Background (1-2 Page)
Problem Statement And Related works (2-3 Pages)
Research Questions (1/2 Page)
Aim and Objectives (1/2 Page)
Significance of the Study (1/2 Page)
Scope of the Study (1/2 Page)
Research Methodology (2 – 3 Pages
Required Resources (1/2 Page)
Research Plan (1/2 Page)
Below is the initial proposal. You will have to base the research proposal on the below. Please let me know if there are any questions.
Use of Blockchain Technology in Finance
The emergence of new technologies like blockchain and advanced machine learning is putting pressure on the financial industry right now. Contracts in the financial sector are now written in formal contract languages rather than plain English, as was the case in the past (Rijanto, 2021). In Automated Execution of Financial Contracts on Blockchains, I intend to analyze several methods for financial contracts and provide a domain-specific modeling language-based solution for the contracts (Ozili, 2019). With the suggested language, complicated rule definitions may be specified, executed, and checked automatically. The Ethereum blockchain may be used to show this. The study’s specific goal is to demonstrate how a generic blockchain-based financial contract management system can automate the execution of financial contracts. Blockchain applications in financial management, in particular, will be the focus of this investigation, as will the ramifications of such applications. An architecture for separating contract terms from contract execution is presented in this article (Rijanto, 2021). The contracted evaluator captures the syntax and semantics of the financial contract, but the contracted evaluator does not conduct any contractual activity (Ozili, 2019). The user-identifiable contract managers carry out or handle these actions, whose task is to administrate methods to accomplish financial agreements. Contract managers can link abstract names for contracts they handle with real parties. This study aims to examine how blockchain may be used in the financial industry, as well as the security concerns it raises. In addition to secondary sources, the research will use exploratory and descriptive research designs.
1. How are blockchain/distributed ledger technology used in financial management?
2. What are the security-related issues with blockchain technology?
3. How does Ethereum utilize blockchain technology in financial management?
Work leading up to the research project
In the future, blockchain technology will be used for a wide range of purposes. Bitcoin is one of these technologies and is now the most widely used implementation. It is the first time blockchain technology has been used in a real-world context. It’s created using standards for distributed ledger technology to help anyone produce, store, and trade currency. Bitcoin’s architecture ensures that only authorized or verified users/owners with a positive balance may send money using the digital currency (Nor et al., 2021). A maximum amount may be sent, but it has not yet been spent. An open-ended number of individuals are involved in this unique contract, implemented via the Bitcoin network. Certain rules govern how blockchain operates. The distributed nature of the ledger, the availability of an agreed-upon agreement process, and its immutability are three of its most important features, all of which will aid in future efficiency increases. It is feasible to automate transactions, allowing for near-real-time settlements while ensuring security and control against fraud simultaneously.
Along with money transfers, distributed ledger technology enables other uses such as internet-based recording and transmission of digital assets that ensure their inviolability. A greater level of automation, certainty, speed, and trackability is achieved after the items have been digitized as smart assets. They are searched for, acquired, sold, monitored, and logged. Given its ability to record, transfer, and verify the ownership of assets, distributed ledger technology makes an excellent digital registry (Bogucharskov et al., 2018). This domain-specific language is used to carry out a financial contract on the blockchain. Formal contract languages are increasingly used in the financial industry to represent financial contracts. Using the language, the parties to financial transactions can convey their agreed-upon concepts. Valid agreements in these languages are specified by their exact syntax and semantics. Adding a contract language and semantics to a blockchain has the added benefit of expanding the concept of a single, verifiable truth to include both ex-post and ex-ante occurrences, say the authors (Bogucharskov et al., 2018). Therefore, it may be concluded that blockchain technology can be trusted in the financial industry. Because of its increased security and openness, Harvard Business Review believes this technology can alleviate financial sector challenges. Financial institutions typically employ closed ledgers because of their nature and the importance of dependability, stability, and efficiency in this industry. Despite the system’s merits, several authors have raised concerns about it. The technology’s scalability is the first problem. Blockchain applications like bitcoin can only handle about 0.4 percent of all transactions. Similar scaling difficulties may be seen on the Ethereum network. Because of this, the technology’s price is volatile, similar to cryptocurrency. As a result, they are an inadequate medium of exchange (Nor et al., 2021). Another issue with blockchain is that, despite its added protection, it is still vulnerable to hacking and counterfeiting.
Bogucharskov, A. V., Pokamestov, I. E., Adamova, K. R., & Tropina, Z. N. (2018). Adoption of blockchain technology in trade finance process. Journal of Reviews on Global Economics, 7, 510-515.
Nor, S. M., Abdul-Majid, M., & Esrati, S. N. (2021). The role of blockchain technology in enhancing Islamic social finance: the case of Zakah management in Malaysia. foresight.
Ozili, P. K. (2019). Blockchain finance: Questions regulators ask. In Disruptive innovation in business and finance in the digital world. Emerald Publishing Limited.
Rijanto, A. (2021). Blockchain technology adoption in supply chain finance. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3078-3098.
Wang, R. (2021, June). Application of blockchain technology in supply chain finance in beibu gulf region. In 2021 International Wireless Communications and Mobile Computing (IWCMC) (pp. 1860-1864). IEEE.