Cryptocurrency Integration Challenges in Blockchain for Financial Institution

Md Rafiqul  Islam; Muhammad Mahbubur  Rahman; Mohammed Ataur  Rahman; Muslim Har Sani Bin  Mohamad; Abd Halim Bin  Embong

doi:10.69955/ajoeee.2021.v1i2.18

Authors

Md Rafiqul Islam International Islamic University Malaysia https://orcid.org/0000-0001-7395-9798
Muhammad Mahbubur Rahman International Islamic University Malaysia
Mohammed Ataur Rahman International Islamic University Malaysia
Muslim Har Sani Bin Mohamad International Islamic University Malaysia https://orcid.org/0000-0002-3489-9937
Abd Halim Bin Embong International Islamic University Malaysia https://orcid.org/0000-0002-6310-9746

DOI:

https://doi.org/10.69955/ajoeee.2021.v1i2.18

Keywords:

Cryptocurrency, Blockchain, Hash, consensus, immutability

Abstract

Cryptocurrency is the latest adventure of currencies that works by using the new edge technology called the blockchain. It has gained the notable attention of the people for the last several years across the world. Cryptocurrency is also globally known as digital currency or virtual currency, and it is a form of payment that can be used online for goods and services. Blockchain has captured the application of many in the financial industry, including those vigorous in the transaction, clearing, and settlement, with its promise of greater efficiency and higher resiliency. The Cryptocurrency has been adopted by using blockchain technology that raised eye-catching attention in the financial sector, government, stakeholders, and individuals as well. It can be anticipated that Cryptocurrency will be the future currency that will replace fiat money worldwide. Though it has been attracted the users' attention, the money of them worried about its future useability, drawbacks, and challenges. Still, the research on cryptocurrencies is far behind and in the initial stage to integrate these currencies in financial institutes. This lack of trust situation in the financial sector aggravates further when it comes to cryptocurrency management challenges that are still not critically analyzed. The originality of this paper is the concept of currencies including cryptocurrencies, the concept of the blockchain ecosystem, and the cryptocurrency integration challenges of the existing blockchain in the financial institution. This paper will help the new researchers to work on cryptocurrencies and their integration challenges in the financial system.

Metrics

Metrics Loading ...

Downloads

Download data is not yet available.

References

S. Nakamoto, “Bitcoin: A peer-to-peer electronic cash system,” Manubot, 2019.

A. Collomb and K. Sok, “Blockchain/distributed ledger technology (DLT): What impact on the financial sector?,” Digiworld Economic Journal, (103), 2016.

C. Vijai, et all., “The Blockchain Technology and Modern Ledgers Through Blockchain Accounting,” Adalya Journal, vol. 8(12), 2019. https://doi.org/10.2139/ssrn.3514501 DOI: https://doi.org/10.2139/ssrn.3514501

I. C. Lin and T. C. Liao, “A survey of blockchain security issues and challenges,’’ IJ Network Security, vol. 19(5), pp. 653-659, 2017.

F. Ferdous and M.A. Uddin, “Toward Islamization of Science and Technology,” Doi: 10.3329/issues.v9i0.24029, 2011

T. J. Sargent and M. Wallace, “A Model of Commodity Money,” Journal of Monetary Economics, vol 12(1), pp. 163 -187, 1983. https://doi.org/10.1016/0304-3932(83)90055-7 DOI: https://doi.org/10.1016/0304-3932(83)90055-7

M. Hanif, “Developing A Fair Currency System,” ISRA International Journal of Islamic Finance, vol. 12(2), 2020. https://doi.org/10.1108/IJIF-02-2019-0024 DOI: https://doi.org/10.1108/IJIF-02-2019-0024

F. Durani, “The Economic Dangers of the Fiat Money System,” Eastern Journal of Economics and Finance, vol. 4(1), 2019. https://doi.org/10.20448/809.4.1.1.13 DOI: https://doi.org/10.20448/809.4.1.1.13

A. Rosic, “What is blockchain technology? A step-by-step guide for beginners,” Blockgeeks, 06-Mar-2018.

S. Nakamoto and A. Bitcoin, “A peer-to-peer electronic cash system. Bitcoin,” 2008. URL: https://bitcoin. org/bitcoin. pdf, 4.

J. Garay, et all., “The bitcoin backbone protocol: Analysis and applications,” In Annual international conference on the theory and applications of cryptographic techniques, pp. 281-310, Springer, Berlin, Heidelberg, 2015. https://doi.org/10.1007/978-3-662-46803-6_10 DOI: https://doi.org/10.1007/978-3-662-46803-6_10

B. B. V. Argentaria, “What is the difference between DLT and blockchain,” Communications. https://www.bbva.com/en/difference-dlt-block chain/. Accessed, 19, 2018.

Y. Xu and Y. Huang, “Segment blockchain: A size reduced storage mechanism for blockchain,” IEEE Access, 8, pp.17434-17441, 2020. https://doi.org/10.1109/ACCESS.2020.2966464 DOI: https://doi.org/10.1109/ACCESS.2020.2966464

A Sunyaev, “Distributed ledger technology,” In Internet Computing, Springer, Cham, pp.265-299, 2020. https://doi.org/10.1007/978-3-030-34957-8_9 DOI: https://doi.org/10.1007/978-3-030-34957-8_9

F. M. Benčić, and I. P. Žarko, “Distributed ledger technology: Blockchain compared to directed acyclic graph,” In 2018 IEEE 38th International Conference on Distributed Computing Systems (ICDCS) pp.1569-1570). IEEE, 2018. https://doi.org/10.1109/ICDCS.2018.00171 DOI: https://doi.org/10.1109/ICDCS.2018.00171

K. Srivastav, “A guide to blockchain immutability and challenges,” DZone, Devada Media, 29, 2019.

Q. Deng, “Application Analysis of Blockchian Technology in Cross-border Payment,” Advances in Economics, Business and Management Research, vol. 126, 2020. https://doi.org/10.2991/aebmr.k.200306.050 DOI: https://doi.org/10.2991/aebmr.k.200306.050

Y. Wang, et all., “Understanding blockchain technology for future supply chains: a systematic literature review and research agenda. Supply Chain Management: An International Journal,”2019. https://doi.org/10.1108/SCM-03-2018-0148 DOI: https://doi.org/10.1108/SCM-03-2018-0148

F. Glaser, “Pervasive decentralization of digital infrastructures: a framework for blockchain enabled system and use case analysis<” In Proceedings of the 50th Hawaii international conference on system sciences, 2017. https://doi.org/10.24251/HICSS.2017.186 DOI: https://doi.org/10.24251/HICSS.2017.186

S. S. Gupta, “Blockchain,” IBM Online (http://www. IBM. COM), 2017.

M. Di Pierro, “What is the blockchain?” Computing in Science & Engineering, vol. 19(5), pp.92-95, 2017. https://doi.org/10.1109/MCSE.2017.3421554 DOI: https://doi.org/10.1109/MCSE.2017.3421554

T. Hyla and J. Pejaś, “Long-term verification of signatures based on a blockchain,” Computers & Electrical Engineering, 81, pp.106523, 2020. https://doi.org/10.1016/j.compeleceng.2019.106523 DOI: https://doi.org/10.1016/j.compeleceng.2019.106523

S. Zhang and J. H. Lee, “Analysis of the main consensus protocols of blockchain,” ICT express, vol6(2), pp.93-97, 2020. https://doi.org/10.1016/j.icte.2019.08.001 DOI: https://doi.org/10.1016/j.icte.2019.08.001

A. Gervais, et all., “On the security and performance of proof of work blockchains,” In Proceedings of the 2016 ACM SIGSAC conference on computer and communications security, pp. 3-16, 2016. https://doi.org/10.1145/2976749.2978341 DOI: https://doi.org/10.1145/2976749.2978341

P. Gaži, et all., "St ake-Bleeding Attacks on Proof-of-Stake Blockchains," 2018 Crypto Valley Conference on Blockchain Technology (CVCBT), Zug, Switzerland, 2018, pp. 85-92, 10.1109/CVCBT.2018.00015. https://doi.org/10.1109/CVCBT.2018.00015 DOI: https://doi.org/10.1109/CVCBT.2018.00015

S. Jokić, et. All., “Comparative analysis of cryptocurrency wallets vs traditional wallets,” International Journal For Economic Theory and Practice And Social Issues, Vol. 63(3), 2019. https://doi.org/10.5937/ekonomika1903065J DOI: https://doi.org/10.5937/ekonomika1903065J