Technological Disruption in Finance: Blockchain-Driven Innovation in Fintech Ecosystems

Abstract

The paper investigates in detail a technological disruption in the financial services industry, which is enabled by blockchain technology, especially focusing on FinTech ecosystems and cryptographic protection systems. The paper discusses how Ciphertext-Policy Attribute-Based Encryption (CP-ABE) can be integrated with blockchain networks to support the creation of secure and fine-grained access control in multi-cloud financial systems. The core issues of digital transformation in the financial sector that our study covers are the security of transactions, efficiencies in operations, regulatory frameworks and decentralized consensus systems. This methodology is a systematic literature review alongside experimental assessment of the blockchain-based systems on various performance aspects such as encryption performance, throughput of transactions, and security robustness. The main results indicate that blockchain-CP-ABE systems with integration can reduce costs by 87 percent when compared to conventional centralized architecture and provide the same cryptographic security guarantees. The paper determines that layer-2 scaling schemes can minimize transaction overhead up to 85-90 without affecting the security properties. Experiment outcomes indicate that the encryption time is between 45-142 milliseconds based on the number of attributes with the decryption efficiency of 99.8 percent success rates by authorized individuals. Security resilience testing has shown 99.97% attacks prevention with the prevalent blockchain vulnerabilities such as 51% attacks, double-spending, and smart contract exploits. The study makes some original contributions to the ideal system of blockchains to use in finance services and evidence-based suggestions on digital transformation strategies. Some of the future directions in research are quantum-resistant cryptography, cross-chain interoperability, and privacy-preserving technology such as zero-proofs and homomorphic encryption.