Blockchain Technology and Cybersecurity in Fintech: Opportunities and Vulnerabilities

Olanrewaju Oluwaseun Ajayi; Chisom Elizabeth Alozie; Olumese Anthony Abieba; Joshua Idowu Akerele; Anuoluwapo Collins

doi:10.32628/CSEIT25111210

Authors

Olanrewaju Oluwaseun Ajayi University of the Cumberlands Author
Chisom Elizabeth Alozie University of the Cumberlands Author
Olumese Anthony Abieba Abeam Consulting USA Author
Joshua Idowu Akerele Independent Researcher, Nigeria Author
Anuoluwapo Collins Cognizant Technology Solutions, Canada Author

DOI:

https://doi.org/10.32628/CSEIT25111210

Keywords:

Blockchain, Cybersecurity, Fintech, Vulnerabilities, Technology, Review

Abstract

Blockchain technology has emerged as a transformative force within the financial technology (Fintech) sector, offering unprecedented opportunities for efficiency, transparency, and security. However, its adoption also brings forth new challenges and vulnerabilities, particularly in the realm of cybersecurity. This review explores the dynamic landscape of Blockchain Technology and Cybersecurity in Fintech, highlighting both the opportunities it presents and the vulnerabilities it introduces. Blockchain technology, most notably recognized as the underlying framework for cryptocurrencies like Bitcoin and Ethereum, operates on a decentralized ledger system, enabling secure and immutable transactions. In Fintech, this technology promises enhanced transactional speed, reduced costs, and increased transparency, revolutionizing traditional banking and payment systems. Nevertheless, the decentralized nature of blockchain networks, while offering resilience against single points of failure, also poses unique cybersecurity risks. Smart contracts, self-executing contracts with the terms of the agreement directly written into code, introduce vulnerabilities such as code bugs and exploits. Moreover, the anonymity associated with blockchain transactions has raised concerns regarding illicit activities, money laundering, and terrorist financing. In response to these challenges, the intersection of Blockchain Technology and Cybersecurity in Fintech offers opportunities for innovation. Advanced cryptographic techniques, such as multi-signature authentication and zero-knowledge proofs, are being leveraged to enhance security and privacy in blockchain-based systems. Additionally, regulatory frameworks are evolving to address the emerging risks associated with Fintech innovations, ensuring compliance and consumer protection. While Blockchain Technology presents promising opportunities for revolutionizing Fintech, its integration must be accompanied by robust cybersecurity measures to mitigate vulnerabilities and safeguard against potential threats. Collaborative efforts between industry stakeholders, regulators, and cybersecurity experts are imperative to foster a secure and resilient ecosystem for blockchain-based financial services.

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