Blockchain and Financial Market Innovation

Rebecca Lewis, John McPartland and Rajeev Ranjan ()

Economic Perspectives, 2017, issue 7, 2-12

Abstract: Blockchain technology is likely to be a key source of future financial market innovation. It allows for the creation of immutable records of transactions accessible by all participants in a network. A blockchain database is made up of a number of blocks ?chained? together through a reference in each block to the previous block. Each block records one or more transactions, which are essentially changes in the listed owner of assets. New blocks are added to the existing chain through a consensus mechanism in which members of the blockchain network confirm transactions as valid. The technology allows the creation of a network that is ?fully peer to peer, with no trusted third party,? such as a government agency or financial institution.

Keywords: Blockchain; payment systems; financial markets (search for similar items in EconPapers)
Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
https://www.chicagofed.org/~/media/publications/ec ... 017/ep2017-7-pdf.pdf Full text (application/pdf)

Related works:
Working Paper: Blockchain and Financial Market Innovation (2017)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedhep:00028

Ordering information: This journal article can be ordered from

Access Statistics for this article

More articles in Economic Perspectives from Federal Reserve Bank of Chicago Contact information at EDIRC.
Bibliographic data for series maintained by Lauren Wiese ().