Blockchain in Financial Services: A New Paradigm for Secure Transactions and Decentralized Finance

Abstract

Blockchain technology is transforming the financial services industry by enabling secure, transparent, and decentralized transactions. This paper examines the role of blockchain in banking, payments, and decentralized finance (DeFi), highlighting its potential to reduce fraud and improve transaction efficiency. The research evaluates regulatory challenges and adoption barriers, particularly in traditional financial institutions. Case studies of successful blockchain implementations in banking demonstrate how smart contracts and distributed ledger technology enhance financial security. Findings suggest that while blockchain adoption is increasing, regulatory clarity and technological scalability remain critical for widespread implementation in mainstream finance.