A STUDY ON BLOCKCHAIN AND CRYPTOCURRENCY IN FINANCE

Abstract

Blockchain technology and cryptocurrency have emerged as disruptive forces reshaping the global financial landscape. Since the inception of Bitcoin in 2009 by the pseudonymous Satoshi Nakamoto, distributed ledger technology has evolved from a niche cryptographic experiment into a foundational infrastructure layer for decentralized finance (DeFi), cross-border payments, smart contracts, asset tokenization, and regulatory compliance automation. This paper presents a comprehensive study of blockchain and cryptocurrency applications in finance, examining their underlying architecture, financial use cases, adoption trends, risk dimensions, and regulatory environment. Primary data was collected through structured questionnaires from 100 respondents comprising finance professionals, investors, and students, while secondary data was sourced from academic literature, IMF and World Bank publications, RBI circulars, and CoinMarketCap analytics. Findings reveal that 68% of respondents recognize blockchain’s transformative potential in financial services, while cryptocurrency adoption is driven primarily by investment returns and portfolio diversification motives. Key challenges include regulatory ambiguity, price volatility, cybersecurity vulnerabilities, and energy consumption concerns. The study concludes with a strategic roadmap for responsible blockchain integration in mainstream financial systems, balancing innovation with systemic risk management.