Blockchain Technology: Applications, Challenges, and Future Prospects

Abstract

Blockchain technology which was first used to support the creation of digital currencies especially bitcoins, has turned out to be revolutionary and is poised to solve various problems in different fields. Some of the benefits deposited in the decentralized, immutable, and transparent system include increased efficiency, security, and trust in the most common digital transactions. Some of the foundational theories on which Blockchain revolves include decentralization theory, game theory, trust theory, transaction cost theory, and the theory of innovation diffusion. These frameworks make it secure, transparent, and less costly in comparison to a centralized structure hence making its usage widespread in finance, healthcare, and supply chains. This paper employed a structured review of the past literature as a research method. The choice of articles was made according to the relevance to the topics such as Blockchain application, issues, and trends. Literature was reviewed and divided by sector in order to identify trends, findings and gaps in the literature. The importance of high impact-factor journals and papers published between the years 2015 and 2024 was considered. In this project, a method of secondary research with an emphasis on qualities research was conducted. Academic articles, conference papers, and industry reports were sourced from Google Scholar using keywords such as “Blockchain in Finance,” “Blockchain Challenges,” and “Future of Blockchain Technology.” The data was thematically analysed to identify trends and classify the findings under three major themes: applications, challenges, and future prospects. The research also shows that sectors such as finance (for instance, cross-border payment, smart contracts), health (for instance, patient records), logistics (for instance, tracking and tracing), and government (for instance, safe voting systems) are experiencing a revolutionary shift due to Blockchain. However, some disadvantages include scalability, lack of regulation, high energy, and security concerns.