210

Blockchain Technology

Korea (Korea) saw improved operating efficiency and higher levels of transpar­

ency and protection for both companies (HSBC, 2020). Blockchain is developed on

a distributed peer-to-peer system. However, the implementation of blockchain and

its application in banking also face some challenges, particularly as anyone in the

network can read transactions and add data. It has a negative database relationship

and restricts the use of blockchain, impacting the security of data and transactions

of customers in the banking system (Drescher, 2017). In addition, blockchain can

generate several addresses to prevent information leakage instead of real identities

for users. Still, blockchain has not managed transaction information leakage suf­

ficiently to ensure customer protection; in addition to using blockchain applications,

computer systems with extensive data and powerful configurations are still needed.

These problems are not solved in the best way (Chang et al., 2020). The evaluation

of blockchain’ contribution to the banking and finance industries is often more con­

strained than in other fields, such as Osmani et al. (2020).

Although the blockchain platform is built on distributed ledger technology,

it is a future advancement that is revolutionary and potentially game-changing.

Nevertheless, according to the World Bank (2019), banking services in emerging

and developing countries are restricted, business infrastructure is developed, and the

demand for services in financial services is increasing rapidly, leading to blockchain.

It will lead to increased employment in the financial technology field and increased

interdisciplinary convergence between ICT, finance and banking. Many firms in the

banking sector would be replaced immediately, resulting in the disappearance of

specific financial and banking industries and leading to the loss of many financial

and banking staff. Hanushek (2013) considers that focusing on creating human capi­

tal can be a driving force for developed countries’ economic growth and that it is

easier for workers to respond faster to changes. In the field of technology and careers,

by investing in human capital by improving the quality of schools, developing coun­

tries have narrowed the gap in academic achievement with developed countries and

stimulated economic growth. However, improving the quality of human capital in

developing countries is becoming increasingly complex and linked to each country’s

economic growth. In the Human Development Index (HDI) from 1990 to 2019, Sub-

Saharan Africa, South Asia and most other developing countries also are not keeping

up with the world average, according to UNDP (2020). Excluding Singapore, the

world’s average HDI is 0.728, higher than the average HDI of developed countries

(0.681). The five countries with the highest HDI are Norway (0.953), Switzerland

(0.944), Australia (0.939), Ireland (0.938) and Germany (0.936). In comparison, the

five countries with the lowest HDI are Burundi (0.417), Chad (0.404), South Sudan

(0.388), the Central African Republic (0.367) and Niger (0.354).

While several reports have already confirmed the development of blockchain in

the banking industry in developing countries, it continues to increase. But, legal

issues are arising in some nations. First of all, the banking system is evolving and

lacks coordination, so it is not working together to establish standards and popu­

larize, apply and facilitate blockchain technology. Each nation needs to develop a

legal framework capable of promoting the adoption and innovation of blockchain

products, promoting education in blockchain to harness this lucrative sector’s