Opportunities and Risks of Blockchain and Smart Contracts in Finance










1.0. Introduction
1.1. Definitions/Functioning
Blockchain technology can be defined as structured data that acts as store for transactional records while also providing security, a decentralized system and transparency in how it functions. It can also be conceived as a chain which is stored as blocks which are functioning without any sole authority. This blockchain is accessible to everyone on the network and acts as a common ledger to everyone. Altering information that is stored on this ledger is difficult, which is why it is also considered secure and credible. The best way to assert the authenticity of the blockchain is through use of digital signatures which secure it. It is because of the use of digital signatures and encryption patterns that the data stored on it is free of being tampered and cannot be changed. The credibility of blockchain is reliant on these features[1].
The smart contract can be defined as a computer code that is superimposed on top of a blockchain and running effectively. When the defined rules are agreed upon, then they’re automatically enforced. Smart contracts make certain that these pre-defined rules are met when facilitating a transaction. [NA1] They help verify and enforce these rules during a negotiation and allow for efficient agreement between all people involved. It is an easy way of using a decentralized automated system[2]. Digital assets are used which are deposited by few parties and these are automatically distributed among the remaining members through a formula which is based off specific data, this is kept concealed during the phase of contract initiation. It’s important that this should not be confused with a legal contract. It’s vital that smart contracts be coded by people who have a command on how to code for it by using all available information.
1.2. Problem Statement
Blockchain and smart contracts allow scope for modifying the financial sector as well as pose risks that must be dealt with instantaneously. Tackling and identifying the opportunities as well as setbacks is integral to deciphering the value of this technology and how soon it can become a mainstream feature of financing.
1.2. Objectives
1.     First objective of the study is to describe the application areas of blockchain and smart contracts in banking.
2.     Another objective of the paper is to define the advantages and disadvantages of blockchain technology in finance.
3.     Moreover, the study will also focus on identifying the opportunities, threats, strengths and weaknesses associated with blockchain technology in terms of finance.
4.     Another objective of the study is to define the influence of blockchain and smart contracts on the business models of the banks.  [NA2] 
2.0. Application Areas or Possibilities in Banking
The financial services sector is the best place to start when discussing the application of smart contracts. Using smart contracts to regulate transactions being made for commercial reasons would help quicken the process as well as simplify it. Assurance of accurate transfers being taken place would also be a bonus and all parties would have to oblige to the pre-defined rules. The brilliance of smart contracts lies in how it regulates financial transactions. As all the terms are visible to each member involved in the network, smart contracts are designed to meet those terms and hence, diminish the room for errors and ensure efficiency in how the function.
Banks are already implementing blockchain projects with the mission to simplify how their payments across borders are made; hence, ensuring transparency is obvious in their transactions. Smart contracts and blockchain technology will be integrated into the system of banking, healthcare, real estate and internet of things [NA3] in the foreseeable future[3]. Smart contracts will help shape the future of the customers through new experiences in banking. Smart contracts can help make payments along with loans automated.[NA4]  There will be less complexity involved when acquiring the personal data of the buyer, verifying their information, their behavior of spending and subsequent information will be processed in a much quicker and efficient manner. Sourcing data will be easier if smart contracts will be enabled to gain access to the customer’s information regarding their ownership of deeds on their name and the land records that are associated with their name. Extracting data will be easier as all the customer data will be available on a shared platform[4].[NA5] 
Third party verification won’t be needed for acquiring and assembling personal data of the customers; the customer could avail benefits such as a quicker response from clients and reductions in transaction costs. [NA6] Blockchain allows their users to link their digital assets to smart contracts; this will help construct the path for end – to – clearance and will help ensure control of different products that the bank will offer[5].
The best application that smart contracts offer will be that the user who decides to tether their personal information regarding mortgages, assets, or any commodity will be able to track their progress. When explaining how transactions are made through smart contracts, let’s assume there are two people, John and Mike, who wish to transfer a commodity between themselves, such as a house. The agreement is made between the two on the Ethereum blockchain using a smart contract. The agreement between John and Mike is now contained on the smart contract. Simply put, this is what the agreement will look like: “When John makes a payment of 300 Ether to Mike, then John will acquire ownership of the house”. These are the conditions that have to be met, and once they’re set in the smart contract they can’t be altered. This allows John to safely make the payment when he can. This scenario helps us understand how a third party, such as a broker or a lawyer was not involved, thereby saving fees to third-party companies. [NA7] The best part is that no intermediary dealer who usually acquires a personal fee for delivering a commodity will be needed in such an exchange.
2.1. Other Application Areas
Innovation that blockchain technology offers to innovators and entrepreneurs has given them the boost to try and implement this technology across more facets of the government and industry[6]. The following examples will let us see the many ways that blockchain technology is being used across a wide range of areas, apart from crypto currency.
Initial Coin Offering (ICO): Small businesses can use Initial Coin Offerings to garner funds through crowd-funding. It’s a simple way of acquiring funds through the public rather than persisting after venture capitals to provide funds and convince them on making investments. It also helps avoid the multiple regulations that are to be met when dealing with finance authorities[7]. This method will also allow the sale of stakes within the same company to all the people who are interested in joining a new venture.
Clearance and Payment: One of the best benefits of blockchain technology is the ability to make payments in a streamline process without having to endure risks that can be met through third parties.
International payments: Blockchain basically has an encrypted databased which can result in consistency and transparency while doing banking transactions. Encryption will ensure that data is secure and verification further adds on the safety of transactions. This can be used to handle payments internationally without having any bank in between and also reduced costs.
Peer-to-Peer (P2P) Transactions: Different providers offer direct transactions including Paypal and Twint aiming at transfer of virtual money. However, there are different weak points of these systems including spatial restrictions etc. Blockchain can be used to avoid the risk of hacking or international restrictions.
Capital Markets: Blockchain technology can also be used to handle capital markets and big banks such as Credit Suisse are interested in it. But the process of handling capital market transaction is complex and it needs more time for development.
Trade Finance: Blockchain technology can be used for the purpose of trade finance and its first live test has already been carried out in 2016 in Israel. Normally contracts which are very time-consuming, blockchain technology was used to make a transaction within 4 hours that would otherwise take weeks. Additionally, reduced liquidity and high bureaucratic costs important reasons that will boost blockchain technology in this area.
Protection Against Money Laundering: Encryption makes blockchain technology a very good tool to protect against money laundering. Contracts are completely transparent and technology allows recording the records of transactions and the persons involved. Hence, the verification and identification of customers, it is possible to prevent money laundering.
Insurance: Blockchain and smart contracts can also be used for the purpose of insurance. Contracts and claims can be settled in a transparent manner. All damages could be managed by network by filtering out wrong claim of damages[8]. [NA8] [NA9] 
3.0. Opportunities and Advantages/Disadvantages of Blockchain and Smart Contracts in Finance
There are certain advantages and disadvantages to such nascent technology but nonetheless they are worthy of being assessed and analyzed to help businesses understand how to integrate them into their systems to make the most of them[9].
3.1. Advantages of Blockchain
Bitcoin was an initial product of blockchain technology. Its purpose was to establish a new form of digital currency that would allow anonymity and allow transactions free from the supervision of the government[10]. While this eludes Bitcoin analysis startup companies like Elliptic and the Center on Sanctions and Illicit Finance to the number of illicit activities taking place,[NA10]  simultaneously, regulators have also realized that it isn’t impossible to try and control this system.  If we look into the structure of bitcoin then we come to realize that absolute anonymity isn’t there, instead every transaction that is made is recorded on the distributed ledger publicly. They even show links to specific entities, it in turn is quite similar to how e-mail addresses work. Legally, tracking down perpetrators who are responsible for illegal activities has been possible. There are also relevant regulations regarding the exchange of Bitcoin currency to real world currency and is subject to scrutiny regarding verification of identity, terrorism financing and tracking down money laundering schemes.
Regardless of the supposed problems that bitcoin has been discovered to present, private and public sector companies and agencies are intent on using it for their benefit[11].  Decentralization is the essence of blockchain and it can help numerous problems that present now by capitalizing on these benefits, which are:
Absolute Transparency: Every participant within the network has the same accessibility of data and history of transactions made[12].
Constancy: There is consensus taken from all members before changes or modifications are made to the data because changing one record will set in motion changes in subsequent records as well.
Safety and Security: Compromising and jeopardizing the transaction data becomes difficult for hackers, as modifying data that has been distributed throughout the network is difficult. The best method to prevent fraud and illegal transactions would be by encrypting data and sensitive information, thereby protecting every dataset on the network[13].
The Ability of Tracing Data: The benefit of the history of transactions being auditable allow for blockchain to provide a path that helps assess and verify the authenticity of the information at hand.
The attributes that blockchain offers can all be present together based on the different degrees of centralization and permission that the blockchain allows. Currently, blockchain technology allows for data to be kept private and is accessible to certain trusted partners on the network[14]. There are debates regarding such a permissioned system of blockchain (as described in figure 1). There are restrictions regarding who can make transactions, thereby defeating the purpose of Bitcoin allowing everyone the chance to use this technology with freedom and innovation. There are concerns regarding collusion of small groups of many participants who can alter the ledger and the system in permission blockchains. However, in open and permission-less blockchains like Bitcoin, collaboration between numerous users on the network would be necessary. 
Figure 1: Permissioned system of blockchain[15]
3.2. Disadvantages and Limitations of Blockchain
Scalability: The design of blockchain technology actually requires a massive amount of computational power as well as energy. When these are available, only then can confirmation and verification of each block be permissible. An annual estimate of the electricity that Bitcoin uses is estimated to be TWh, which is equivalent to the electricity that is being consumed in Czech Republic[16].
Speed: Per second, the estimated numbers of transactions that can take place are seven on Bitcoin. And in order to confirm each block, there ends up being a delay of 10 minutes per block confirmation. As of the year 2018, the fastest mode of cryptocurrency is Ripple. It allows 1500 transactions to take place in one second. However, this too falls short of the transactions that Visa alone can handle which are 24,000 credit card transactions per second. Wherever speed is a concern, blockchain technology has the potential to disappoint[17].
Confidentiality: When speaking of public permission-less blockchains, it is necessary to note that transaction history is open and accessible. This is not an ideal situation in cases where information needs to be kept confidential. A permissioned blockchain can be requested by user though, but might have to face a problem of not being able to access all benefits of blockchain technology as only select participants will be privy to its services.[18]
Jurisdiction: This is one such area that must be considered when dealing with blockchain technology. One thing is certain that blockchains don’t have a parameter they function within; instead they can very easily surpass jurisdictional boundaries. This can complicate a relationship between two parties where differences in the contract are based off of their differences in jurisdiction, rendering their contractual demands very difficult to meet. It is very difficult to determine the location of single node in a network, that too within a decentralized environment.
Liability: A vendor who offers a blockchain that is trading related; his customers may face the issues of material risks that can affect the settlement of the trade between them and the vendor. There should be careful consideration of the distribution and acknowledgment of the risk that might be endured, and this should be agreed upon by all participants[19].
Platform Software: The credibility of the distributed ledger is always determined by the software which they use to run and function. So, if jeopardized, the entire software is subjected to harm.
Targeted Malware: Targeting malware is a very fatal problem. The malware is part of the infrastructure of the distributed ledger and provides support to it. It is undoubtedly subject to threats and vulnerabilities now with the introduction of crypto-jacking.
Abuse of Privilege: A problem that is on the rise is individuals willing to monopolize and take advantage of the blockchain system. This results in people abusing the privilege of being the controller or administrator of the network and making unauthorized modifications to the infrastructure without consensus.
Figure 2: Blockchain risk overview suggesting impact of cryptocurrency compromise[20]
3.3. Advantages of Smart Contracts
The brilliance of smart contracts is that they can help streamline the process for all small businesses in an articulate and effective manner[21]. The benefit of this contract is that is that it provides a company with the assurance that it has the adequate resources to fill orders or that it has the necessary data to deliver a certain product at a specific location. Certain applications that smart contracts offer are: 
Automated Payments: Many small businesses offer their clients the chance to request the personal choice of keeping their personal information on a file so that it’s accessible when online and automated payments are needed. Smart contracts don’t just offer these essentials but also offer better protection of data[22].  The use of blockchain technology that is the foundation of smart contracts makes the information of clients more protected. There is a bonus of building trust between the client and the business, also giving a competitive edge. There are automatic updates of payments being made so everything is relevant and current.
Engagement contracts. Smart contracts are able to help deliver promises or expectations that are due, whether it is regarding an event that has to be planned or meeting that requires consultation. The smart contract helps keep tabs on when, what, and how things will be delivered. The smart contract will alert you when goals or payments have been met. Both cash flow and the trust between clients and partners are strengthened.
Real Estate: For a realtor, opting for the use of smart contracts can help streamline his processing of data and minimize costs as well. The best benefit of this would be that the entire process from selection of a house to sale of a house can all be done regardless of how far apart the parties transacting with each other live. Every step will be managed by smart contracts, from the clearance of a house and payment, to closing costs. The buyer is notified of the deed once payments are made either through full payment or through mortgage payment. Mortgage companies are using smart contracts to help modify and navigate their payments, finances and rental companies that are in touch with them to generate digital leases that are to be used eventually[23].
Employment Contracts: A smart employment contract ensures that the employee is very well informed of their pay and what work is expected of them. The transparency that is present keeps both the staff and the clients on the same track; this helps them work on their relation[24]. The contract can be used to pay off wages only when requirements such as certain working hours are met, after which the system determines for the wages to be paid. The smart contract is liable to modification in the event that promotions are made or changed are made in the responsibilities of the employees, this allows proper tracking of the performance of the employees’ growth in the business.
3.4. Disadvantages and Limitations of Smart Contracts
There are limitations to smart contracts. The consumers are usually quite suspicious because of it being a new technology[25]. While there is immense potential in them, organizations have to be considerate when implementing them. A blatant fact is that coding is difficult and can at times result in loopholes. Ethereum has been deemed as the second most valuable cryptocurrency following Bitcoin, and its code has been lauded as being better than that of Bitcoin. Immense trust was pooled into this form of coding, such that a bunch of investors put together millions of dollars to launch a decentralized form of investments, which would allow everyone the chance of having an opinion on how the funds would be managed. However, a massive hack in 2016 left this smart contract code crippled and destroyed. The advent of blockchain technology into the finance sector has yet to find a secure footing because small companies are being subjected to potential threats by incorporating smart contracts. Smart contracts should only be used if they legally bind all individuals involved and hold each member accountable in the event of unforeseen damage.
A get-out/cessation clause is one such solution that smart contract developers believe is the answer. But its undeniable that these clauses have the chance of projecting the individuals to more exploitation and vulnerability than previously anticipated. Cessation clauses are challenging to begin with because the smart contracts are not always perfectly coded. There are numerous challenges that have already impacted the security and assurance that smart contracts offer. The addition of platform that hasn’t been tested out completely is a risky attempt on part of any business willing to risk their standing at this stage of using technology.
3.5. SWOT Analysis
Strengths: There’s an added benefit of quick and low cost money transfers to be made between parties. There is no need for intervention from a third party, thereby saving on costs that would otherwise have been expended on their use. The system is upgraded to an automated one through use of smart contracts. It is accessible globally and is very convenient. It is transparent and helps prevent and form of fraud to surpass clients and customers. It provides a good platform to assess and analyze all data on the network. Modification of the data on the network is improbable.
Weaknesses: There is the off chance that scalability might limit how this technology will be used in the future if it doesn’t match new innovations in the system. Low performance can be an issue if all parties become overly reliant and inefficient. There is a lot of energy consumption when using and regulating a large network with numerous parties logged into the system. As the system is highly transparent, user privacy might be compromised and that might be concerning for some people. While it has been established that the lack of data modification means that fraudulent behavior is prevented, there’s always the fear that one single code that controls a whole system can be hacked by coding experts. There is also the need that external oracles will be relied heavily upon. If there is the unfortunate loss of credentials of users, then the lack of an intermediary will mean that data recovery might be limited. Due to the unreliability of the market, the fear that cryptocurrency might lose their value is a major concern. There’s also the problem of blockchain still being in its early stages, which means that mastering blockchain will take time, and gaining proper understanding of its concepts will mean more people will have to work hard in grasping how it functions. Many existing technologies are still delivering the same results those blockchains offers, only in longer durations, so convincing businesses to shift to a modern way of operating may take time.
Opportunities: Companies that will integrate blockchain and smart contracts will gain a competitive advantage because the complexity involved in how the regulate data and interact with customers will become easy. New markets will be an easier target and it will help companies get acquainted with them far more quickly. The best thing about blockchain will be that large amounts of data will be coming from different parties and at the same time they’ll be accessible and present in one huge platform to be used.
Threats: It can be perceived as an unreliable form of networking to people who don’t want to modernize their system. If external parties hesitate to contribute to this system then limited information will be available for accessing. Convincing the government about the security blockchain might offer will be difficult. At the same time convincing customers about how online interaction is better and easier than personal interaction might not suit them.
4.0. Influences of technology trends (Blockchain & Smart Contracts) on the business models of banks[NA11] 
Changes that blockchain technology offers will help shape and structure new business models. Blockchain technology has been known to exemplify the complicated and disruptive capabilities of the market, it provides the opportunity of offering features which although uncommon will help impact how the industry is functioning in the long run. Business models of banks will have to restructure how their payments are made as implementation of blockchain technology would mean faster payments, as well as reduction in fees when making international transactions. This is particularly attractive for banks when dealing with cross border transactions.
The digitally distributed ledgers will provide banks with the potential to manage and operate their business at lesser costs and make real time transactions more accessible to customers. Transparency and public transactions will mean that banks business models will have to incorporate this technology knowing that all how they choose to operate will be open knowledge to everyone[26]. This also means that banks which integrate blockchain technology in the business models will be able to have quicker access to liquidity that is made through coin offerings. A crypto-economic model is what banks will rely upon. There will be access to different streams of capital and delineates away from traditional financing. Conventional methods can be skipped and in turn a modern method of selling tokens to customers can be employed. This would also mean that banks with such a business model would be disrupting the very structure of current capital markets by how the tokenize stocks and bonds. Banks would now be able to borrow and secure the money that is being exchanged with much more security and also at lower interest rates which is vital to how banks can save on costs.
Simply put, blockchain would be improving business models by making direct transactions possible. The concept of trust agents will soon be eliminated. Peer-to-peer execution of transactions is a concept that might be very promising to the clients and customers. Not only will identified parties be comfortable with its use but also unidentified parties will find it relatively easy to use. The emergence of a decentralized trading market is on the brink. Globalized trading will become quicker and efficient as cross border payments will be made easily. The current inefficiencies that clients and customers have to suffer will be minimized. It is undeniable that cross border transactions are quite time consuming, very elaborate and are expensive too. The best benefit will be the cheap and effective means of transacting. Expensive currency exchange offices will become obsolete or run down and that would be gladly accepted by customers who have to make additional payments. Current business models which require additional money paid to acquire remittances will be eliminated. A connection between the contract and the transaction will be established. The contracts of payments will be linked to transactions made, and this is where smart contracts come into play and help contribute to the efficiency this system promises[27].
5.0. Summary and Outlook
The technology of Blockchain is still being developed and is undergoing numerous prototypes to make it a system that is impossible to breach while at the same time effective and quick. This technology has acquired a lot of attention and at the same time has raised numerous expectations. Blockchain is an innovative and new technology that has disruptive powers and can change the current way businesses are functioning. Financial services first witnessed changes in the form of Bitcoin. New services are being introduced which encourage peer to peer interaction and improve how cross currency and cross-country interactions take place, rendering current exchange offices obsolete. Coding experts are given a leverage to enter the market and showcase their knowledge of how to integrate blockchain into current business models. It’s important that the need of implementing a fundamental change be recognized by all companies so that in order to thrive in modern times, all parties recognize how necessary it is to modify their current methods and use blockchain to improve inaccuracies and outdate methods of working.
The value of blockchain technology is uncontestable, and its contributions in the form of smart contracts allow us to see how far and wide technology can help in accelerating work in the finance sector. The prospect of it being adopted as a mainstream aspect in larger business has been postulated to come into force by the year 2020 (Figure 3).
Figure 3: Prospect of blockchain technology to be adopted as a mainstream aspect in businesses[28]
Smart contracts have the potential of providing businesses with the exciting opportunity of personal growth, which allows them a chance to transform and make a mark in the financial services industry.  It is vital that whenever breakthroughs and innovative ideas are introduced into the field, then regulators identify whether is the current technology juts a trend or is there some actual potential. Smart contracts should be identified about the potential it’s been supposed to provide to business and banks. By giving time and attention on understanding the scope of smart contracts, postulating its long-term benefits, and establishing a strategy with which its impact and effects in the long term can be envisioned.  This will allow for organizations to understand its importance in the digital age. For expanding it is necessary that the financial services sector should make educated and informed decisions about how to incorporate smart contracts setup an ecosystem where it plays an important role. It is vital that proper evaluation and assessment of their need to replace traditional contracts be assessed, and that the hype for this technology not shroud the thought processing of people and whether its need is needed in the first place or not.
References
A report by the UK Government Chief Scientific Adviser. Distributed Ledger       Technology: Beyond   Blockchain. 2016. p. 35.
Alharby, Maher. "Blockchain Based Smart Contracts : A Systematic Mapping       Study." 3rd       International Conference on Artificial Intelligence and Soft   Computing. Computer Science & Information Technology (CS & IT) , 2017.          125-140.
Amondarain, Bilabo Jon. Blockchain Risks. 2017.
Atiken, Roger. Smart Contracts On The Blockchain: Can Businesses Reap The     Benefits? 2017.
BRADBURY, DANNY. How Much Power It Takes to Create a Bitcoin. 2018.
Chavez-Dreyfuss, Gertrude. Coca-Cola, U.S. State Dept to use blockchain to combat forced labor. 2018.
Coumaros, Jean. "Smart Contracts in Financial Services: Getting from Hype to      Reality." 2018. p. 16.
Gatteschi, Valentina. "Blockchain and Smart Contracts for Insurance: Is the           Technology Mature Enough?" Future of Internet, 2018: 1-16.
Grybniak, Sergey. Advantages and disadvantages of smart contracts in financial   blockchain       systems. 2017.
Hern, Alex. MtGox files for bankruptcy in Japan after collapse of bitcoin exchange.          2014.
Hub, Lisk. Blockchain Transparency Explained. 2019.
Hughes, Brian. Smart Contracts: Here Are the Practical Applications of This Exciting Blockchain Technology. 2018.
Iyer, Subramanian. The Benefits of Blockchain Across Industries. 2016.
Myler, Larry. Transparent Transactions: How Blockchain Payments Can Make Life          Easier  For B2B Companies. 2017.
Oh, JaeShup. "A case study on business model innovations using Blockchain:        focusing on financial institutions." Asia Pacific Journal of Innovation and            Entrepreneurship, 2017: 335-344.
Pratap, Mayank. Blockchain Technology Explained: Introduction, Meaning, and   Applications, 2018.
Small, Mike. Blockchain and Risk. Kuppinger Coin Analysis, 2016.
Talin, Benjamin. Blockchain – Possibilities, Applications And Use Cases For The           Distributed Ledger Technology. More than digital. 2019.
Violino, Bob. Blockchain voting: Can it help secure our elections? 2018.
VlasteLICA, Ryan. Why bitcoin won’t displace Visa or Mastercard soon? 2017.
Yew, Lee. Technology brief: Blockchain—Risks and Opportunities. Singapore:      National Univeristy of Singapore, 2017



[1] Pratap, Mayank. Blockchain Technology Explained: Introduction, Meaning, and Applications, 2018.
[2] What is blockchain technology? Research Briefs. 2018
[3] Step, Ani. Top 5 Ways Blockchain is Changing the Banking Industry, 2017.
[4] Sandle, Tim. How Blockchain Is Transforming Banking. 2018.
[5] Etherparty. Beyond Crypto: The Benefits of Smart Contracts for Banking, Healthcare and Real Estate, 2018.
[6] Yew, Lee. Technology brief: Blockchain—Risks and Opportunities. Singapore: National Univeristy of Singapore, 2017.
[7] Alharby, Maher. "Blockchain Based Smart Contracts : A Systematic Mapping Study." 3rd International Conference on Artificial Intelligence and Soft Computing. Computer Science & Information Technology (CS & IT) , 2017. 125-140.
[8] Talin, Benjamin. Blockchain – Possibilities, Applications And Use Cases For The Distributed     Ledger Technology. More than digital. 2019.
[9] Gatteschi, Valentina. "Blockchain and Smart Contracts for Insurance: Is the Technology Mature Enough?" Future of Internet, 2018: 1-16.
[10] Hub, Lisk. Blockchain Transparency Explained. 2019.
[11] Iyer, Subramanian. The Benefits of Blockchain Across Industries. 2016.
[12] Myler, Larry. Transparent Transactions: How Blockchain Payments Can Make Life Easier For B2B Companies. 2017.
[13] Myler, Larry. Transparent Transactions: How Blockchain Payments Can Make Life Easier       For B2B Companies. 2017.
[14] Myler, Larry. Transparent Transactions: How Blockchain Payments Can Make Life Easier For B2B Companies. 2017.
[15] A report by the UK Government Chief Scientific Adviser. Distributed Ledger Technology: Beyond         Blockchain. 2016. p. 35.
[16] Chavez-Dreyfuss, Gertrude. Coca-Cola, U.S. State Dept to use blockchain to combat forced labor. 2018.
[17] Violino, Bob. Blockchain voting: Can it help secure our elections? 2018.
[18] BRADBURY, DANNY. How Much Power It Takes to Create a Bitcoin. 2018.
[19] VlasteLICA, Ryan. Why bitcoin won’t displace Visa or Mastercard soon? 2017.
[20] Amondarain, Bilabo Jon. Blockchain Risks. 2017.
[21] Hern, Alex. MtGox files for bankruptcy in Japan after collapse of bitcoin exchange. 2014.
[22] Small, Mike. Blockchain and Risk. Kuppinger Coin Analysis, 2016.
[23] Hughes, Brian. Smart Contracts: Here Are the Practical Applications of This Exciting Blockchain Technology. 2018.
[24] Atiken, Roger. Smart Contracts On The Blockchain: Can Businesses Reap The Benefits? 2017.
[25] Grybniak, Sergey. Advantages and disadvantages of smart contracts in financial blockchain      systems. 2017.
[26] Oh, JaeShup. "A case study on business model innovations using Blockchain: focusing on financial institutions." Asia Pacific Journal of Innovation and Entrepreneurship, 2017: 335-344.
[27] Holotiuk, Friedrich. "The Impact of Blockchain Technology on Business Models in the Payments Industry." Proceedings of the 13th International Conference Business Information Systems. Frankfurt: WI 2017, 2017. 912-92.
[28] Coumaros, Jean. "Smart Contracts in Financial Services: Getting from Hype to Reality." 2018. p.16.

 [NA1]Pre defined rules for making transactions.
Comment addressed.
 [NA2]Have been modified according to the comment “linked to finance”
 [NA3]Fixed.
System of banking, healthcare and so.
 [NA4]Reshaped and fixed as per comment
 [NA5]Fixed. Restructured the sentence.
 [NA6]Simplified
 [NA7]Explained and made easier as per comment
 [NA8]A
 [NA9]Added the suggested areas.
 [NA10]Fixed and specifically mentioned
 [NA11]Changed

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