| dc.description.abstract | A blockchain is an open, decentralized ledger that provides a cryptographically secure way of
transacting without the need of trusted third parties. The technology has garnered a variety
of claims and perceptions regarding the future of financial institutions. Originally introduced
to circumvent the incumbent financial intermediaries, blockchain technology has increasingly
attracted interest from the very institutions that it was meant to replace.
In this exploratory study, we seek to analyze the impact of blockchain technology on the
current market infrastructure by conducting a literature review and in-depth interviews with
experts and stakeholders from the financial industry. Our findings suggest that smart contracts
can automate and potentially decentralize a variety of transactions. Moreover, the
introduction of initial coin offerings has brought about a new means of peer-to-peer fundraising
in a space previously dominated by venture capital firms, but financial intermediation
will likely remain to support the effective functioning of financial markets by resolving information
asymmetry.
Furthermore, we find that the distributed and immutable nature of blockchain technology
provides a robust and secure infrastructure by increasing the integrity of data. This will interconnect
institutions across financial markets by streamlining settlement- and verification
processes and potentially expanding global financial services in ways previously neglected.
The foundation of the financial system will, however, remain. We have considered various
aspects such as regulatory concerns and market designs to unfold the extent of potential
gains and limitations provided by blockchain technology.
We conclude that there are yet many unknowns with respect to the extent and speed with
which blockchain technology will impact financial services and intermediation. However,
the technology will improve efficiency in current infrastructures, as well as facilitate new
decentralized ways of transacting. | nb_NO |
