Journal of Research in Information Technology and Its Applications ISSN: 3139-504X (Online)

Authors: Neha Kulshrestha, Arvind Kumar Sharma, Meenal Bansal, Sanjay Sekhawat

Abstract: Blockchain technology has emerged as a transformative innovation in financial transactions by enabling decentralized, transparent, and tamper-resistant record keeping. Traditional financial systems depend heavily on intermediaries such as banks, payment gateways, and clearing houses, which often results in high transaction cost, processing delays, and limited transparency. Blockchain introduces distributed ledger architecture that allows secure peer-to-peer transactions without central authority. This paper reviews the concept of blockchain technology in financial transactions, explores its architecture, applications in banking and digital payments, advantages, and existing challenges. The study also highlights regulatory concerns, scalability limitations, and adoption barriers faced by financial institutions. A comparative analysis between conventional and blockchain-based financial systems is presented through tables. The paper concludes that blockchain can significantly improve efficiency, trust, and financial inclusion, but large-scale adoption still requires technological maturity and regulatory clarity.

Keywords: Blockchain, Financial Transactions, Cryptocurrency, Distributed Ledger, Smart Contracts, FinTech, Digital Payments