Blockchain Technology Assignment: Research Proposal On The Ways In Which Blockchain Is Transforming Finance Industry
Task: Prepare a blockchain technology assignment representing a research proposal on the ways in which blockchain is transforming finance industry.
The current report on Blockchain technology assignment is discussing about the ways in which blockchain is transforming finance industry. Blockchain technology invented in the year 2008 has shown tremendous capability to transform various industries. It has capability to change different areas of business. Even during infancy of the technology, it had shown capability to disrupt varied sectors and industries. Blockchain technology comes with various features such as immutability, decentralization and transparency making business sectors appealing all worlds over. A major industry that is leading the application and exploring potential of blockchain technology is the finance and banking industry. The current scope of business research proposal on Blockchain technology assignment includes evaluation of pertinent areas that blockchain technology has transformed the finance industry.
2. Scope of Research
2.1 Project Aim and Objectives
The aims and objectives of the project on Blockchain technology assignment are stated below:
Project Aim: To explore ways in which blockchain technology is transforming the finance industry
The following are some of research objectives which will be evaluated in this study;
- Research Objective 1: To understand the scope of blockchain technology
- Research Objective 2: To analyse the application of blockchain technology in the finance industry
- Research Objective 3:To understand the relevant transformation taking place in the finance industry with application of blockchain technology
2.2 Research Questions
The following research questions will be answered in the study developed in the Blockchain technology assignment.
- Research Question 1: What is the scope of blockchain technology?
- Research Question 2: What are the application of blockchain technology in the finance industry?
- Research Question 3: How blockchain technology is transforming the finance industry?
2.3 Justification for the research
While there has been a number of applications of blockchain technology in varied industry, their implications in the finance industry has been most pertinent in nature. While the capability of blockchain technology has been understood to be primarily to reduce costs and labour savings, there have been several other minor transformations in finance as well as banking industries. The justification of research is to understand the relevant areas of blockchain technology which have been already been explored and applied and areas which needs to be explored further. Basically, this study will have the capability of transferability implying that this study will form as the basis for further studies. Scholars can refer to this study for deciding the scope of their research, implying they will not need to conduct literature search to understand which areas of blockchain technology applications have already been undertaken.
3. Literature Review
A brief literature search is conducted for this case scenario of Blockchain technology assignment to reveal the potential areas of applications of blockchain technology in the finance sector. According to article by Yoo (2017) blockchain is considered as a revolutionary technology that contributed for the growth and development of the financial market or the finance industry. According to the World Economic Forum of 2016, blockchain has developed the effective connection between different consumers and producers (Yoo, 2017). This has played a vital role in maintaining proper record of all circulation or monetary transaction from both the side of client and different banks (Yoo, 2017). Besides developing the good connectivity, blockchain has implemented “ten complete new technologies” mentioned in the UN Future Report for expanding the financial market in different parts of the world (Yoo, 2017). Different foreign as well as domestic companies have started investing huge amount of fund or capital in blockchain to expand their business in both national and international markets. This has helped in conducting different researches for inventing new techniques for the development of both national and international financial sectors (Yoo, 2017). According to the author of the journal analysed to prepare this Blockchain technology assignment, blockchain has helped in developing the economic conditions of different countries including Asia, Korea, North America and others by generating workers remittance or maintaining the proper flow of capital from international market to the domestic markets (Yoo, 2017). During monetary transactions this blockchain comprises a block of 5 to 10 min for verifying all the details and data or the accounts in which the money is going to deposit or transfer. From this process of conducting a block the term “Blockchain” is derived. Implementation of Bitcoin is also considered as the major change that helped in increasing the share or the investment of different shareholders present in the market (Yoo, 2017). Thus, as per the view of this article, it is seen in this section of Blockchain technology assignment that Blockchain has helped in securing customer’s fund and increasing their amount of money or share by rotating or maintain its proper flow in the market. Lastly this has helped in developing the financial industry by implementing all the above-mentioned changes.
Nguyen (2016) observed that blockchain has played a vital role in developing the sustainable position of different financial sectors of both national and international business market (Nguyen,2016). This article illustrated in this segment of Blockchain technology assignment provides the view of the global economic crisis that occurred in the year 2008. According to this article, after this crisis the government has implemented different strict rules and laws to ensure the safety and security of both the fund of government and general public. For accumulating proper data and records of different consumers, producers, bank owners and every member who invested their share in any bank or funds that deals with different monetary transactions, government has implemented the blockchain system to keep the records of all updated information of every transaction. To gather proper information about the range of different shares invested buy different clients (Nguyen, 2016). By the implementation of the blockchain the government has developed or implemented new policies that provide different opportunities to different clients to supervise or interfere in all the changes that occur during any kind of transactions and provide proper knowledge about different data or updates about the increase or the decrease of their capital or share invested in the share market (Nguyen, 2016). This has helped in determining different benefits and facilities to different customers by providing specific amount over the net amount of money invested by that customer (Nguyen, 2016). This flow of money has helped in developing the global economy as well as ensured the generation of the transparent communication between the clients and different banks. Thus, this article concludes that implementation of the blockchain system has helped in developing the financial industry by ensuring safe and secure monetary transactions.
The Blockchain technology assignment considers the words of Xu, Chen and Kou (2019) that mentions “Blockchain” system was established by Satoshi Nakamoto in the year 2008. Satoshi Nakamoto has stated that cryptology and open distributed ledger helped in determining the digital currency application that helped in developing clear transaction and communication between international and national financial sectors (Xu, Chen, & Kou, 2019). As per the opinion of the author, there are numerous advantages that blockchain offers like introducing bitcoin to seek the attention of different clients or shareholders present in the market (Xu, Chen, & Kou, 2019). Introducing tamper proof construction and openness in different monetary has helped in generating the faith in the mind of different investors and helped to invest more amount that may help the government to ensure the proper flow of capital in different international and national market (Xu, Chen, & Kou, 2019). This has helped in maintaining a sustainable growth or development in the economic conditions of different countries (Xu, Chen, & Kou, 2019). The implementation or the formulation of this system has helped in reducing the adverse effect of fraudulent activities and corruption like misplaced of big amount of money without any proper information or data. With the implantation of different new technologies helped in undertaking proper verification of every action performed by any member associated with that financial industry or any bank (Xu, Chen, & Kou, 2019). Thus, after analysing the mentioned article it has observed herein Blockchain technology assignment that blockchain system has helped in transforming the financial industry by ensuring safe and secures monetary transactions. Beside this the blockchain is considered as the cost effective or pocket friendly system to generate the flow of capital.
Treiblmaier and Umlauff (2019) observed that besides having several advantages, Blockchain system also affect the society and the work force badly. As per the view of the author of this article, with the implementation of the blockchain or bitcoin system, there was the reduction of the manpower in different financial sectors (Treiblmaier, & Umlauff, 2019). The installation of this system has raised good opportunities for different skilled employees who posses’ good knowledge about the different technologies likes handling different software, maintain data and monitoring or updating the system to add different changes in the share market. For this reason, it has generated serious difficulties for previous or old employees to adopt with the new technology to perform their regular duty and secure their position in the company (Treiblmaier, & Umlauff, 2019). It has observed in the context of Blockchain technology assignment that unable to adopt with new technologies maximum number of employees were thrown out of their organization. This had generated a negative impact on the society as well as affects the economic standard or status of a particular section. Beside this, blockchain system has also affected different clients who faced serious trouble in generating proper transaction. According to this article, the implementation of this system has raised the completion and among different employees or staffs associated with the firm and also affect the unity among them (Treiblmaier, & Umlauff, 2019). Considering these facts observed in the article of Blockchain technology assignment, it is seen that the author declared that “blockchain” system as the double-edged sword that put both negative and positive impact on the society. The author also states that this system has affected the future of different employees in an adverse manner.
Barima (2017) states that though blockchain has helped in determining easy transaction or the easy flow of capital has raised serious challenges that may affect the fund or the capital of the government. With the implementation of different new innovative techniques, it has observed that it become difficult for the government to supervise each and every aspect of the same (Barima, 2017). Without the proper government control or the supervision this system has affected the existing business model and simultaneously, generates negative impact on the organizational profit. Different criminal activities like money laundering, data stealing or data piracy and other similar criminal activities have increased (Barima, 2017). Beside this the authenticity of different data has reduced this may affect the verification procedure badly (Barima, 2017). The critical analysis on the article presented in the Blockchain technology assignment states that the implementation of the algorithm has raised or increases the possibilities of generating confusion and doubts in handling systems. Thus, this creates a serious threat on different financial sectors by decreasing or disrupting their flow of capital. In other words, it can state that though blockchain has helped in generating easy transaction of money may raise serious difficulties if there is a minor fault in any part of the entire system and affect the entire economy badly (Barima, 2017). Thus, this article concludes that blockchain system has possessed both positive and negative sides that it may affect the economic condition of any financial sector both in good and bad way.
4. Research Design
4.1 Primary Research Approach (methodology) and strategy
In order to conduct a research on Blockchain technology assignment, it becomes pertinent to ascertain a research methodology and research strategy for the same. A research strategy encompasses a step-by-step plan of action which can provide direction to conduct the study. In the current study, as per the aims and objectives stated in the research qualitative research procedure will be adopted. As the study aims at exploring the various ways by which blockchain technology is bringing about transformation in the area of finance, qualitative exploration of the domain will match the expectations for outcomes of the study. Undertaking qualitative methodologies will enable identifying categorization, describing, interpreting, contextualizing and providing an in-depth insight and then arriving at the outcomes for the study (Kumar, 2019).
This qualitative methodology will be applied in the study developed in the Blockchain technology assignment by undertaking a thorough qualitative research. This implies qualitative data will be collected for the purpose the study and thereafter interpreted for the purpose of analysis and arriving at suitable findings.
4.2 Sampling Strategy
The study will conduct primary research meaning first-hand data search for the purpose of collecting data. The scholar will collect qualitative data from various personnel working in the finance sector (Mitchell and Jolley, 2012). The scholar preparing the Blockchain technology assignment will conduct interview by which the application and area of transformation the personnel has witnessed during his/her professional life working in the finance sector will be explored. The finance sector from which the scholar will collect data relevant to the study includes banking, investment broking companies, insurance companies, credit unions, credit card companies, accountancy companies, investment funds and consumer-finance companies. The scholar will collect data from approximately 1000 personnel from across 50 companies. The sampling strategy used for collecting data will be simple stratified random sampling strategy.
The participants of the study will be briefed regarding the aims and objectives of the study and their consent will be obtained prior their participation in the study. A consent form will be made to sign by them before they attempt the interview. The consent form and invitation to take part in the study will be conducted over email and some interviews will be conducted over telephone as well. After sufficient data has been collected for the research on Blockchain technology assignment, exclusion criteria will be applied. The inclusion criteria for the study, will consider participants who indicate their gender as either male or female. The participants should be minimum 25 years and lower than 55 years of age. The participants need to be working for a minimum period of 3 years to be answering the questions of the interview. Moreover, the participants needs to be connected to technical working at the institution to be indicating their answer for the interview. All other participants will be excluded from the study.
4.3 Data Analysis
The qualitative data collected for the study from varied participants will be analysed using transcript analysis technique (Creswell and Poth, 2016). This will be done by the software NVivo. The scholar will collect transcripts of the participants and then feed it into NVivo software using word coding techniques such as “Security”, “Safety”, “better” and so on. These words pattern will be studied in an extensive manner through word cloud and other available pattern techniques to arrive at the findings of the data.
4.4 What are the issues concerning validity, reliability and generalizability in regards with the case scenario of Blockchain technology assignment?
The study might suffer from the issues regarding validity, reliability and generalizability of data. Hence the scholar will ascertain to cross-check the validity and reliability of each response received from participant online, to understand the reality of the data supplied. Each data will then be further cross-checked and re-validated to ascertain genuineness and transferability of the study. In case any data is found to be anonymous or otherwise in nature then the scholar will contact the participant again to ascertain their point of view.
Neither the data nor the data analysis will be generalized. The scholar will ascertain to collect data from each distinct participant and will prevent duplication of data as well. This will ensure that the study is conducted in a genuine manner and there is no repetition or generalization of data or data analysis in the study undertaken.
Though the scholar will ascertain conducting the study appropriately and overcoming all possible barriers, there might be some limitations faced in the study. Following are some of the limitations faced in the study;
- Though the study will try and ascertain all possible transformations brought about in the finance industry through qualitative data collection and analysis, there might still be present some transformations missed out. Research and development in blockchain technology is taking place on a global scale, hence it might be impossible to ascertain all the possible avenues where transformations has been adopted.
- The study examined in the Blockchain technology assignment might not be able to collect authentic data from few participants. Though the scholar will select participants on a random basis, with no relationship or whatsoever present with the scholar. Some participants might want not want to provide correct or true information. There is no way in which the scholar can re-ascertain in case a participant is speaking true or false. This might lead to incorrect findings for the case scenario of Blockchain technology assignment.
- There might be limitation related to time. The study evaluated in the context of this Blockchain technology assignment is extensive in nature, hence there might arise time constraint while collecting data from varied participants and collecting their responses within stipulated time period. This study will be given a certain time period within which it will need to be concluded and submitted, in case all participants responses does not arrive till such time, it might change overall findings for this research.
- There might arise cost-related limitations. The scholar will need to contact people and gather data in an extensive manner. Making large number of phone calls might be necessary also the study might incur travelling expenses. Though the scholar has ascertained a specific budget for the study, but due to the extensive nature of it, the budget might over-exceed. This might alone lead to the study becoming ineffective due to financial constraints.
The research on Blockchain technology assignment will be developed and will be completed as per the timeline indicated in the below mentioned Gantt chart. The key elements of the research have been identified as below and will be implemented in this manner as shown in figure below.
Table 1: Project Timeline
Barima, O. 2017. Blockchain technology assignment Leveraging the blockchain technology to improve construction value delivery: the opportunities, benefits and challenges. Construction Projects, pp. 93-112.
Creswell, J.W. and Poth, C.N., 2016. Qualitative inquiry and research design: Choosing among five approaches. Blockchain technology assignment Sage publications.
Kumar, R., 2019. Research methodology: A step-by-step guide for beginners. Sage Publications Limited.
Mitchell, M.L. and Jolley, J.M., 2012. Research design explained. Cengage Learning.
Nguyen, Q. K., 2016, November. Blockchain-a financial technology for future sustainable development. In 2016 3rd International Conference on Green Technology and Sustainable Development (GTSD) (pp. 51-54). Blockchain technology assignment IEEE.
Treiblmaier, H. and Umlauff, U.J., 2019. Blockchain and the future of work: a self-determination theory approach. Blockchain technology assignment Blockchain Economics: Implications of Distributed Ledger Technology, pp.105-124.
Xu, M., Chen, X. and Kou, G., 2019. A systematic review of blockchain. Financial Innovation, 5(1), p. 27.
Yoo, S., 2017. Blockchain based financial case analysis and its implications. Asia Pacific Journal of Innovation and Entrepreneurship, Blockchain technology assignment 11(3), pp. 312-321.