ESSENTIALS OF DIGITAL

FINANCE

VINOTHKUMAR R
III BCom A&F
20118063
FINTECH INDUSTRY, DATA & UPDATES
 LEGAL REGULATION
• Legal Regulation Refers to the laws, rules, and regulations that are
established by governments and other legal authorities to govern and
oversee the use of blockchain technology and cryptocurrencies.
• The aim is to protect consumers, prevent fraud and money laundering,
and maintain financial stability.
• These regulations can include licensing requirements, reporting
obligations, anti-money laundering measures, and consumer
protection rules.
• Legal regulation helps ensure that blockchain technology and
cryptocurrencies are used in a manner that is consistent with the
broader legal and regulatory framework of the country.
 SELF REGULATION
• Self Regulation refers to the efforts by the blockchain and
cryptocurrency industry to regulate itself, rather than relying on
government regulations.
• This is often achieved through the creation of self-governing bodies,
such as trade associations, which set standards and best practices for
the industry.
• These standards can cover areas such as transparency, security, and
ethical behavior.
• The goal of self-regulation is to promote trust and credibility in the
industry, while also allowing for innovation and flexibility.
• Self-regulation can complement government regulations and help
ensure that the industry evolves in a responsible manner.
 BLOCKCHAIN
• A blockchain is a decentralized, distributed ledger that records
transactions on multiple computers in a secure and transparent
manner.
• It is a secure way to record transactions and data as it uses
cryptography to validate transactions and prevent tampering.
• The transactions are grouped into blocks and each block is linked to
the previous block, forming a chain of blocks (hence the name
blockchain).
• This structure makes the data tamper-proof and enables all parties to
have access to the same information.
 BLOCKCHAIN
• B l oc kc hai n te c hnol og y i s m ost com m onl y assoc i ate d w i t h
cryptocurrencies but has many potential use cases beyond this, such
as supply chain management, voting systems, and real estate
transactions.
• Blockchain operates on a consensus mechanism, which allows
multiple parties to agree on the current state of the ledger without
relying on a central authority.
• This makes it a secure and efficient method for transmitting and
storing data and ensures that all participants have access to the same
information.
BLOCKCHAIN IN FINANCIAL SOFTWARES & SYSTEM

• Blockchain technology has the potential to revolutionize the financial

services industry by improving efficiency, security, and transparency
in various financial applications.
• Examples of blockchain applications in finance include:
• Payments and remittances: Blockchain technology can reduce the cost and
time needed for cross-border payments by eliminating intermediaries and
enabling real-time transfers.

• Digital assets: Blockchain can be used to issue and track the ownership of
digital assets, such as cryptocurrencies or digital securities.
 EXAMPLES
• Supply chain finance: Blockchain can be used to increase transparency and
efficiency in supply chain finance by creating a shared and immutable ledger
of transactions between suppliers, buyers, and banks.
• Record-keeping: Blockchain can be used to securely store and manage
financial records, such as invoices, trade finance documents, and mortgage
records.

By using blockchain technology, financial institutions can improve

transparency, reduce the risk of fraud, and increase efficiency in their
operations. This can result in lower costs and improved customer experiences.
THANKYOU