IDEAS home Printed from https://ideas.repec.org/a/pal/palcom/v12y2025i1d10.1057_s41599-025-05473-9.html
   My bibliography  Save this article

Exploring trust dynamics in finance: the impact of blockchain technology and smart contracts

Author

Listed:
  • Haochen Guo

    (Southeast University
    Laboratory of Philosophy and Social Sciences at Universities in Jiangsu Province-Fintech and Big Data Laboratory of Southeast University)

  • Xiaoxing Liu

    (Southeast University
    Laboratory of Philosophy and Social Sciences at Universities in Jiangsu Province-Fintech and Big Data Laboratory of Southeast University)

Abstract

This paper explores the transformative impact of blockchain technology and smart contracts on the dynamics of trust within the financial sector. Trust is a cornerstone of financial transactions, traditionally established through centralized intermediaries and legal frameworks. However, the advent of blockchain technology introduces a decentralized, transparent, and tamper-resistant trust mechanism. This study aims to analyze how blockchain and smart contracts redefine financial trust by eliminating reliance on third-party intermediaries and automating trust through programmable agreements. Utilizing a mixed-methods approach, including case studies such as JP Morgan’s Quorum blockchain platform, we examine the practical applications of these technologies and their effects on transactional efficiency, data privacy, and trust realization. Key findings reveal that blockchain significantly reduces transaction costs, enhances transparency, and increases security, paving the way for innovative financial products and services. The paper contributes to the understanding of how decentralized technologies are reshaping the future of financial trust and offers insights for regulators and financial institutions navigating this technological shift.

Suggested Citation

  • Haochen Guo & Xiaoxing Liu, 2025. "Exploring trust dynamics in finance: the impact of blockchain technology and smart contracts," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-10, December.
    • Handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05473-9
    DOI: 10.1057/s41599-025-05473-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1057/s41599-025-05473-9
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1057/s41599-025-05473-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palcom:v:12:y:2025:i:1:d:10.1057_s41599-025-05473-9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: https://www.nature.com/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.