Blockchain for Quality: Advancing Security, Efficiency, and Transparency in Financial Systems

Abstract

This article delves into the transformative impact of blockchain technology on enhancing transaction quality and efficiency. Since the emergence of blockchain alongside Bitcoin in 2008, its decentralised and transparent nature has significantly improved transaction speed, security, and cost efficiency. These advancements have solidified blockchain as a foundational innovation in financial services. The paper examines critical milestones in blockchain, including Bitcoin, Ethereum, and Binance Coin (BNB), and their role in reshaping global finance by automating processes and reducing reliance on intermediaries. Additionally, the study evaluates blockchain’s impact on quality management, particularly emphasising how its immutable ledger system enhances the reliability and transparency of financial transactions. Despite challenges such as scalability, energy consumption, and regulatory hurdles, the potential for blockchain to redefine transaction quality in financial services is evident. This research contributes to the growing body of literature by integrating blockchain technology and traditional quality management systems, providing a comprehensive perspective on how the two domains influence one another. The findings underscore blockchain’s ability to drive innovation in financial services while addressing security, efficiency, and operational quality concerns.

1. Introduction

In recent years, blockchain technology has emerged as a disruptive force, significantly reshaping various industries, particularly the financial technology (FinTech) sector. Initially introduced in 1991 by a group of researchers, blockchain remained relatively obscure until 2008, when the launch of Bitcoin brought this innovative technology into the spotlight. Since then, blockchain’s applications have expanded far beyond cryptocurrencies, with its decentralised and transparent ledger system finding utility in sectors as diverse as supply chain management, healthcare, and financial services. Central to blockchain’s appeal is its ability to address inefficiencies in traditional systems by leveraging transparency, security, and efficiency. These features enhance transaction quality, reduce costs, enable near-instantaneous cross-border payments, and provide robust solutions for challenges like fraud and data manipulation.

Traditionally dominated by centralised entities like banks and payment processors, the financial sector increasingly acknowledges blockchain technology’s transformative potential. While cryptocurrencies, particularly Bitcoin, are the most well-known applications of blockchain technology, the underlying principles of decentralisation and cryptographic security substantially enhance the overall quality of financial services.

The concept of quality in the financial services sector has evolved significantly. It extends beyond customer satisfaction and operational efficiency to encompass digital transactions’ reliability, security, and trustworthiness. Blockchain technology has emerged as a catalyst for innovation in this area, elevating the overall quality of financial operations by leveraging its inherent benefits of transparency, security, and efficiency.

This article aims to comprehensively analyse how blockchain technology enhances transaction quality in FinTech, focusing on the intersection between blockchain and quality.

This study delineates its dual focuses to enhance clarity and minimise redundancy. The first focus centres on the technological impacts of blockchain on transactional quality, explicitly exploring how decentralisation, cryptographic security, and automation enhance efficiency, security, and transparency in financial services. This is illustrated through smart contracts and decentralised networks, which reduce reliance on intermediaries and decrease the likelihood of errors. The second focus expands the scope to consider systemic and strategic implications, including blockchain’s role in mitigating systemic risks, ensuring compliance with regulatory frameworks, and redefining quality management standards within the financial sector. These two focuses contribute uniquely to the study by providing a micro-level analysis of blockchain’s technical advancements and a macro-level exploration of its potential to transform financial ecosystems. Together, they offer a comprehensive view of blockchain’s transformative role in FinTech.

A quality management system (QMS) is a structured framework of processes, policies, and procedures designed to ensure that an organisation consistently meets customer requirements while enhancing overall operational performance. Within a QMS, quality transcends mere product inspection or defect control; it represents an organisational commitment to operational excellence, efficiency, and customer satisfaction. One of the most widely recognised standards for QMS is the International Organization for Standardization (ISO) 9001, a set of guidelines established by the ISO. ISO 9001 delineates the principles of quality management, which include customer focus, leadership, engagement of people, process approach, and continual improvement. In a competitive business landscape, maintaining a well-defined QMS is crucial for ensuring consistency, reducing waste, and bolstering customer trust. The role of a QMS in financial services—such as those examined in this study—has expanded beyond traditional quality management principles. It now encompasses transparency, security, and reliability in digital transactions. As FinTech advances, there is an increasing demand for quality systems that enhance customer experience while addressing critical issues such as data integrity, fraud prevention, and regulatory compliance. Integrating QMS principles into FinTech operations guarantees that financial transactions are efficient, secure, and subject to continuous improvement and stringent quality standards.

The main objective of this article, along with research questions, is to investigate the relationship between blockchain technology and quality management in the services sector. Specifically, how does blockchain technology improve the quality of financial transactions, particularly regarding transparency, security, and efficiency? What are the primary mechanisms through which blockchain enhances the quality of transactions in FinTech, and how do they compare to traditional systems? In what ways do prominent cryptocurrencies such as Bitcoin, Ethereum, and Binance Coin (BNB) exemplify blockchain’s impact on improving the quality of financial services? What are the remaining challenges and limitations in fully harnessing blockchain technology to optimise quality in economic systems?

The article is structured to understand blockchain’s impact on transaction quality and efficiency thoroughly. The introduction outlines the article’s motivation, aims, objectives, and structure. It introduces the reader to the core themes of blockchain technology, quality management, and their intersection in FinTech. The introduction also presents the key questions the article seeks to answer. The literature review provides an overview of existing research on blockchain technology and quality management in the financial services sector. It draws from academic studies, industry reports, and case studies to establish the current understanding of how blockchain has been implemented in FinTech. The review also highlights gaps in the literature, particularly about the role of blockchain in enhancing transaction and quality. The methodology and data section explains the research methodology used in the article. It describes the data sources, which include secondary data. Secondary data come from existing reports, articles, and empirical studies. This section also explains the data analysis methods, including comparative analysis. The results section presents the findings from the analysis of blockchain technology and its impact on transactions and quality. It includes data on the performance of blockchain-based financial systems compared to traditional systems.

Specific attention is given to the role of Bitcoin, Ethereum, and Binance Coin and projects that are made on blockchain technology as case studies that illustrate the strengths and limitations of blockchain in FinTech. The discussion and conclusion sections provide a detailed discussion of the results of the research questions and the broader literature on blockchain and quality management. It highlights key trends, opportunities, and challenges in implementing blockchain technology to enhance transactional quality. The discussion also considers the regulatory and operational barriers to fully realising blockchain’s potential. It summarises the article’s key findings and offers recommendations for future research. It reiterates the importance of blockchain as a tool for improving the quality of financial services and provides insights into the future trajectory of blockchain technology in FinTech. The conclusion also addresses the current study’s limitations and suggests areas for further investigation.

2. Literature Review

Blockchain’s decentralised and transparent nature offers numerous advantages for enhancing the quality of financial transactions [1]. Transaction processing can be slow, expensive, and vulnerable to errors or fraud in traditional monetary systems. Blockchain addresses these issues by providing a secure, immutable ledger that records all transactions distributedly. Each transaction is verified by a network of nodes, ensuring that no single point of failure can compromise the system’s integrity. This decentralised approach improves security and reduces the need for intermediaries, lowering transaction costs and increasing efficiency [2].

Furthermore, blockchain’s transparency improves transactional quality [3,4]. In traditional financial systems, transaction details are typically opaque, with only the involved parties and intermediaries accessing the data. In contrast, blockchain technology makes transaction records publicly available, albeit anonymised, ensuring greater accountability and reducing the risk of fraud. This transparency is precious in cross-border payments, where high fees, long delays, and a lack of visibility into the transaction process have plagued traditional systems [5].

Bitcoin, Ethereum, and Binance Coin (BNB) and projects based on blockchain, such as healthcare, gaming and digital collectibles, energy and sustainability, real estate, government and voting, charity, and crowdfunding, provide practical examples of how blockchain technology improves transaction quality in real-world applications [6]. The first cryptocurrency, Bitcoin, demonstrated how blockchain could facilitate peer-to-peer payments without a central authority. Its success paved the way for developing other cryptocurrencies, each offering unique features to enhance transactional quality. Ethereum, for example, introduced intelligent contracts, which automate transactions based on predefined conditions, reducing the likelihood of errors and improving efficiency. Binance Coin, meanwhile, has become integral to the Binance Exchange ecosystem, offering lower fees and faster transaction processing for users [7]. These cryptocurrencies highlight blockchain’s potential to improve the quality of individual transactions and transform entire financial ecosystems. However, challenges remain, particularly regarding scalability, energy consumption, and regulatory acceptance. Despite these obstacles, blockchain and cryptocurrencies are positioned to play an increasingly important role in shaping the future of (financial) services [8].

In recent decades, the rapid evolution of blockchain technology and cryptocurrencies has brought profound changes to numerous industries, particularly in financial services. Blockchain, developed initially, remained largely unnoticed until Bitcoin emerged in 2008, when it became a cornerstone of decentralised digital currencies [9]. Since then, blockchain has transcended its initial use case in cryptocurrencies, impacting various sectors like supply chain management, healthcare, and beyond, focusing on improving transactional quality and security [10,11].

Blockchain’s rise in popularity is closely associated with the decentralisation and transparency it offers to financial transactions. Unlike traditional centralised financial systems, where intermediaries such as banks are involved, blockchain eliminates the need for these intermediaries by creating a decentralised ledger where all participants can validate and record transactions. This approach speeds up transactions, reduces costs, and increases security [6]. Blockchain’s ledger is immutable, meaning that once a transaction is recorded, it cannot be altered, which is crucial for maintaining data integrity and security [12].

One of blockchain technology’s primary advantages in enhancing transactional quality is its cryptographic features. Transactions are validated through consensus mechanisms like Proof of Work (PoW) and Proof of Stake (PoS), ensuring that only legitimate transactions are recorded in the ledger [13,14]. This verification process dramatically reduces the possibility of fraud, a significant issue in traditional banking systems. Furthermore, blockchain’s transparency ensures that all transactions are visible to network participants, improving accountability and reducing the risk of manipulation [15].

The literature also highlights that blockchain’s security improvements directly contribute to better financial operational quality [1]. Blockchain’s use of cryptography makes it difficult for attackers to alter transaction data, as any change would require re-computing every block following the modified block, which is a computationally prohibitive task [16]. As a result, blockchain has become an ideal technology for securing sensitive financial information, especially in areas where trust and data integrity are paramount [17].

Bitcoin, Ethereum, and Binance Coin (BNB) are among the most well-known examples of blockchain’s application in cryptocurrencies. They all work on the same principle. All transactions are conducted through blockchain technology and are decentralised. Each transaction is stored in a block created by the blockchain and cannot be altered. Bitcoin, the first decentralised cryptocurrency, revolutionised peer-to-peer (P2P) financial transactions by allowing individuals to transfer value without a central authority [18]. Ethereum expanded on Bitcoin’s foundation by introducing smart contracts, which automate transactions based on predefined rules. This advancement enabled a broader range of decentralised applications, further enhancing the efficiency and reliability of blockchain-based financial operations [19].

On the other hand, Binance Coin (BNB) serves as a utility token within the Binance ecosystem. It allows users to access lower transaction fees and faster Binance exchange processing times, demonstrating how blockchain can improve financial service quality [20]. In addition, cryptocurrencies like BNB offer users privacy, as transactions can be conducted without revealing personal details, which is increasingly important in a world where data privacy concerns are growing [21].

Hyperledger, an open-source blockchain framework under the Linux Foundation, has emerged as a pivotal player in the enterprise blockchain arena, particularly within the financial services sector. In contrast to public blockchains like Bitcoin or Ethereum, Hyperledger emphasises permissioned blockchains, providing a controlled environment that meets the financial industry’s rigorous privacy, security, and regulatory requirements. A key example is Hyperledger Fabric, which powers platforms such as we.trade, utilised by several major European banks to facilitate secure cross-border trade finance transactions. Additionally, Hyperledger Indy offers decentralised identity solutions, addressing the critical need for secure digital identity verification in compliance with Know Your Customer (KYC) and anti-money laundering (AML) regulations. These implementations underscore the benefits of employing Hyperledger in financial services, including enhanced privacy controls, reduced transaction costs, and improved adherence to financial regulations. Financial institutions can ensure compliance by adopting permissioned blockchain solutions while capitalising on blockchain technology’s efficiency and transparency [22,23,24].

Despite these advancements, cryptocurrencies’ volatility poses a significant challenge to their broader adoption. While blockchain provides technical stability and security, cryptocurrencies’ market value remains highly unpredictable. This volatility can hinder their ability to serve as a reliable medium of exchange, which is a fundamental criterion for transactional quality [25,26].

Together, they have a potential role to play in implementing the quality management system.

They include compliance with requirements and standards, and their combination enables automated recording of compliance with different standards (ISO 9001), thus reducing human error and improving efficiency.

Supply chain traceability, as Indy and Fabric focus on data security and reliability, it is possible to claim that all data within the QMS will remain untampered and verifiable. Automatic audits, as Fabric stores all transactions and activities in the system, allows easy automatic audits, while Indy allows proper data verification. Decentralised identity for employees and suppliers, as secure attendance verification between internal and external QMS processes is enabled.

Indeed, their combination allows the integration of traceability, security, and decentralised identities for quality management. This allows for greater transparency, better compliance with industry standards, and increased confidence in data that can significantly improve the efficiency and performance of the QMS itself.

Blockchain and Quality Management Systems

In the highly regulated and dynamic financial services landscape, establishing a robust QMS is imperative for organisations to adhere to operational standards and consistently deliver superior service quality. Financial services, characterised by their reliance on precision, regulatory compliance, and the cultivation of customer trust, necessitate an integrated approach to quality management that effectively mitigates risks and enhances service reliability. Unlike traditional product-driven industries where quality management predominantly emphasises manufacturing processes, the financial sector demands a more nuanced strategy that amalgamates operational excellence with risk management and compliance obligations [27,28].

A well-executed QMS in financial services encompasses standardising critical processes, thereby minimising errors and inefficiencies, particularly in high-stakes transactions. This systematic approach ensures that each phase of service delivery—from customer onboarding to transaction processing—is monitored, controlled, and subjected to continuous improvement initiatives [29,30]. A pivotal function of a QMS within this sector lies in its capacity to enhance risk management by identifying potential vulnerabilities, streamlining operations, and ensuring rigorous documentation and enforcement of compliance with pertinent regulations, such as AML and KYC mandates. Financial institutions face the formidable challenge of managing extensive data volumes, ranging from sensitive customer information to comprehensive transaction histories. A QMS provides the necessary framework to guarantee that such data are handled securely, efficiently, and legally compliant. By instituting clear protocols for data governance, a QMS mitigates the risks associated with fraud, data breaches, and operational inefficiencies—factors profoundly critical for the maintenance of customer trust and alignment with regulatory requirements [31,32,33].

Furthermore, as financial services transform with the adoption of advanced technologies, contemporary QMS frameworks increasingly incorporate digital instruments such as artificial intelligence (AI) and data analytics. These technological advancements facilitate predictive maintenance, real-time transaction monitoring, and sophisticated analytics that preemptively identify quality issues before they impact broader operational systems. This evolution toward technology-driven quality management systems empowers organisations to satisfy and surpass industry standards, fostering a culture of continuous improvement and proactive risk management [3,34].

The literature review underscores the transformative potential of blockchain technology, extending beyond mere transaction processing to encompass broader applications such as compliance, supply chain transparency, and asset tokenisation. For example, blockchain-based Know Your Customer (KYC) [23] solutions, implemented by major financial institutions, enhance identity verification by securely storing and sharing customer data across networks. Similarly, blockchain-enabled supply chain systems utilised by companies like IBM and Walmart facilitate real-time tracking of goods, ensuring authenticity and accountability [35]. In asset management, tokenising real-world assets—such as bonds and real estate—on platforms like Ethereum has fostered increased accessibility, liquidity, and transparency [36].

3. Materials and Methods

This section presents the research approach, data sources, and methods to explore how blockchain technology enhances transaction quality within the FinTech sector. The methodology has been refined to provide a clear account of the datasets, tools, and processes utilised in the quantitative analysis. Secondary data were sourced from reputable cryptocurrency exchanges like Binance and Coinbase. The literature review acted as a foundational step in identifying gaps in existing research, ultimately shaping the quantitative analysis. Recurring themes from the literature, such as blockchain’s transparency and scalability challenges, directly influenced the selection of data points for analysis. The results were integrated into a comparative framework that contrasted blockchain-based systems with traditional financial networks.

Given the topic’s multifaceted nature, the research relies on quantitative methods, utilising secondary data. The methodology is designed to provide a comprehensive understanding of blockchain’s impact on transactional quality, focusing on cryptocurrencies such as Bitcoin, Ethereum, and Binance Coin (BNB) as case studies.

Secondary data were collected from academic articles, industry reports, and case studies. The literature review focused on studies that examine blockchain’s role in FinTech, with particular attention to how it improves transaction quality. This included peer-reviewed articles on blockchain’s technical foundations, particularly concerning transaction speed, security, and cost efficiency—industry reports on adopting blockchain technology in financial services provided data on transaction performance metrics. Case studies on Bitcoin, Ethereum, and Binance Coin (BNB) illustrate how these cryptocurrencies demonstrate blockchain’s potential to enhance quality. Additionally, empirical data from cryptocurrency exchanges, including transaction volumes, fees, and processing times, were analysed to compare blockchain-based systems with traditional financial transaction networks. This quantitative data allowed for comparing transaction costs, processing speeds, and security metrics between blockchain and non-blockchain systems.

The research employs a quantitative analysis approach to provide a well-rounded understanding of how blockchain enhances transaction quality. The methodology is divided into three stages: a literature review, a quantitative analysis of transaction data, and a synthesis of the comparative analysis.

The first stage of the research involved a comprehensive literature review, which served as the foundation for the study. This review focused on the academic and industry literature on blockchain technology, cryptocurrency, and transaction quality in financial services. The literature review was essential in identifying gaps in the current research, particularly the need for a focused investigation into blockchain’s role in improving transactions and quality. It also helped shape the research questions and provided a theoretical framework for analysing the primary and secondary data. The second step involves a thorough analysis of the evolution of blockchain technology, cryptocurrencies, and smart contracts, focusing on the fluctuations in their market values. The final stage of the research involves a comparative analysis of traditional quality management and blockchain. Figure 1 represents the blockchain technology and how it works.

4. Results

4.1. Security and Data Integrity: Technological Perspective

Blockchain technology’s decentralised and immutable characteristics present substantial advancements in security, which is crucial for financial services. Traditional centralised systems are prone to single points of failure and potential manipulation. In contrast, blockchain guarantees that transaction data, once recorded, cannot be altered without consensus from multiple nodes. This decentralised verification process, particularly evident in platforms like Bitcoin and Ethereum, has significantly mitigated the risk of unauthorised changes, establishing a new benchmark for data integrity.

Quantitative data from the Bitcoin and Ethereum networks reinforce these observations, demonstrating that instances of fraud are markedly lower than in traditional banking systems. This attribute is especially advantageous in financial services, where reliability and data integrity are essential. From a business perspective, this heightened level of security fosters increased customer trust, particularly in sectors where transparency and traceability are critical, such as cross-border payments and asset management. According to Chainalysis, cryptocurrency fraud has caused approximately USD 5.6 billion in global losses [37]. The most common scams in cryptocurrencies have been rug pulls, which means that when a person makes a coin, people can invest in it, and then he closes it and takes all the money invested and disappears, as well as fake investment schemes. In most cases, all the scams have been purely due to recklessness and reckless investing in coins with no projects behind them.

According to the Association of Certified Fraud Examiners (ACFEs), global losses due to financial fraud, counterfeit cheques, and identity theft are expected to exceed USD 100 billion in 2023. Fraud via blockchain is approximately USD 4 billion annually, representing 0.15%, while traditional banking is approximately USD 125 billion annually, representing 0.8%. This suggests that fraud in blockchain systems is approximately 80% lower when adjusted for transaction volume.

Nonetheless, from a regulatory viewpoint, despite blockchain’s impressive security features, challenges arise regarding oversight. The decentralised nature of blockchain complicates the enforcement of compliance standards, such as AML and KYC regulations, which are vital in the financial services sector.

Table 1. Comparative Timeline of Blockchain and Quality Management Milestones.

Year	Milestone Blockchain	Milestone Quality
1960		TQM was introduced to focus on continuous quality improvement across organisations.
1980		Six Sigma methodology was developed to reduce defects, and the CQI was established to promote quality improvement.
1987	Technological Development	ISO 9000 standards [38] were introduced, emphasising the importance of QMS.
1991	Blockchain Conceptualised.	Internet Common Usage emerges, impacting communication and operational quality.
2000	Focus On Technology Development.	E-Social Networking impacts customer service quality with the rise of online interactions.
2008	Bitcoin Introduced.	Technology drives QMS into digital transformation.
2010	First Cryptocurrency Transaction.	Lean management gains prominence as a method of improving organisational quality by reducing waste.
2015	Ethereum Platform Launched.	The First Smart Contracts introduced on Ethereum contribute to automation and quality consistency.
2017	Binance Launched (one of the world’s largest and most popular cryptocurrency exchanges).	The concept of quality 4.0 emerges, integrating digital tools (like AI and IoT) into quality management.
2019	FTX Founded.	Agile quality management methodologies have started gaining traction to improve quality processes.
2022	FTX’s Collapse.	Quality challenges in decentralised systems become apparent, highlighting governance failures.
2023	Development of AI.	AI implementation in Quality management for its predictive maintenance.
2024	Resumption of Growth, Halving, More Development On Cryptocurrency Projects.	Quality improvements through blockchain and AI integration into quality control processes.

Note: IoT—Internet of Things. Source: Authors’ Compilations.

highlights the parallel development of blockchain and quality management systems, demonstrating how both fields have evolved and intersected over the decades. Key milestones, such as the introduction of total quality management (TQM) in 1960 and the conceptualisation of blockchain in 1991, illustrate how technology and quality practices have shaped modern financial services.

4.2. Transparency and Accountability: Business and Regulatory Perspectives

One of the most transformative aspects of blockchain technology is its inherent transparency. Unlike traditional financial systems that often depend on opaque centralised databases, blockchain offers a real-time, tamper-proof record of every transaction. This feature is especially advantageous for auditing, as the data are verifiable and cannot be manipulated retroactively. Industries such as supply chain finance have adopted blockchain due to its ability to enhance transparency and operational efficiency by effectively tracking assets and transactions across multiple parties.

From a business perspective, this transparency reduces the cost and complexity associated with audits and fosters trust among parties, particularly in sectors where multiple entities are involved in transactions. However, regulators encounter challenges related to the open nature of blockchain, as finding the right balance between transparency and privacy remains a contentious issue, especially in jurisdictions with stringent data protection laws. In the European Union, the biggest problem arises from Article 17 of GDPR—the right of erasure. Because you cannot tamper with the data in the blockchain, it also makes it hard to delete specific data within it. The authors are erasing data from blockchain nodes. In 2019, the IEEE European Symposium on Security and Privacy Workshops described a “Erasure database” solution. This method allows any network participant the ability to mark data for deletion or replacement. The new transaction data are stored in the erasure database, allowing the previous local content to be deleted. However, this creates an issue where new transactions in the blockchain reference the deleted content. To address this, the authors implement a rule stating that transactions do not require re-verification. The old transactions, which rely on the deleted content, remain valid, while the new transactions, created after the deletion of the referenced old content, are deemed invalid. Many other methods are also being tested and implemented by various companies, so there is still no one main method used inside the EU.

So,

Table 2. Comparison of Features: Traditional Quality Management vs. Blockchain Technology.

Feature	Traditional Quality Management	Blockchain Technology
Centralisation	Centralised	Decentralised
Data Integrity	Propensity to human error	Constant and safe
Transparency	Limited visibility	Transparency and reviewability
Efficiency	Manual processes	Automated and efficient
Safety and Security	Fraud Vulnerable	High level of security and security
Automation	Limited automation	Full process automation
Cost	High due to inefficiencies and intermediaries	Implementation costs are high, but long-term
Collaboration	Limited by organisational boundaries and silos.	Seamless, global collaboration via shared ledgers.
Compliance & Audits	Manual and time-intensive processes.	Automated checks and simplified auditing with smart contracts.
Traceability	Time-consuming and reliant on paper trails.	End-to-end traceability with permanent records.

highlights key differences between traditional quality management and blockchain technology across six critical features, showcasing blockchain’s advantages in modern quality management. In terms of centralisation, traditional quality management relies on centralised control, often making it vulnerable to single points of failure. In contrast, blockchain’s decentralised structure distributes control across a network, reducing such vulnerabilities. Data integrity also benefits from blockchain’s constant and safe data recording, whereas traditional methods are more susceptible to human error. Transparency is limited in conventional systems, where visibility is often restricted to specific personnel. Blockchain provides complete transparency, allowing all participants to review and verify records. Efficiency is enhanced by blockchain’s automated processes, surpassing the manual methods often used in traditional quality management. Safety and security are strengthened in blockchain, which uses cryptographic verification, making it less prone to fraud than conventional systems. Finally, automation in blockchain enables end-to-end process automation, whereas traditional systems offer limited automation capabilities. Table 2 could serve as a highlighted answer to the research questions.

4.3. Cost Efficiency and Speed: Technological and Business Perspectives

Blockchain technology’s capacity to eliminate intermediaries in financial transactions has led to considerable cost savings. Traditional financial systems heavily rely on intermediaries such as banks and payment processors, which introduce fees for each transaction. Blockchain significantly reduces these costs by facilitating peer-to-peer transactions, making it especially beneficial for worldwide payments.

From a technological standpoint, Layer 2 solutions like the Lightning Network for Bitcoin further enhance cost efficiency by alleviating congestion on the main blockchain. These technologies enable quicker and more affordable off-chain transactions, helping blockchain-based systems maintain their competitive edge. Quantitative data indicate that Bitcoin’s average transaction fees are generally lower than those associated with traditional systems like Society for Worldwide Interbank Financial Telecommunication (SWIFT) or Single Euro Payments Area (SEPA). Additionally, Ethereum’s transition to Proof of Stake (PoS) is anticipated to tackle scalability and cost issues.

However, businesses must also consider the variability of transaction fees on networks like Ethereum, where costs can spike during periods of high demand. While Layer 2 scaling solutions aim to address this concern, the current fee fluctuations challenge blockchain’s overall cost efficiency, particularly for smaller transactions. The timeline (Figure 2) provides a visual overview of the significant milestones in the development of blockchain technology, from its conceptualisation in 1991 to the anticipated advancements in 2024. These milestones mark substantial technological shifts, such as the introduction of Bitcoin in 2008 and Ethereum’s implementation of smart contracts in 2015. These are pivotal to understanding blockchain’s evolution in financial services and subsequent savings.

4.4. Scalability: Technological Challenges and Future Solutions

Scalability continues to pose a significant challenge for blockchain, especially in high-volume applications such as retail payments. While Bitcoin and Ethereum are highly secure and efficient for low-frequency, high-value transactions, their capacity to handle large transaction volumes—like those required for point-of-sale payments—remains constrained. During peak usage periods, this often leads to network congestion, increasing fees and slower transaction times. Technological advancements have emerged to tackle these issues, including sharding, Layer 2 solutions, and off-chain transactions. Sharding, for example, segments the blockchain into smaller parts that can process transactions in parallel, thereby enhancing throughput. Furthermore, Ethereum’s transition to Proof of Stake (PoS) aims to improve the network’s ability to handle more transactions per second (TPS), boosting overall efficiency. Despite these advancements, the scalability challenge endures, particularly when juxtaposed with traditional systems like Visa, which can process thousands of transactions each second.

From a business standpoint, these scalability limitations restrict blockchain’s application in high-frequency, low-value transactions. Nonetheless, ongoing innovations indicate blockchain’s potential in these areas will likely expand as technology evolves.

4.5. Case Study Applications: Bitcoin, Ethereum, and Binance Coin (BNB) and Projects Based on Blockchain

Bitcoin, recognised as the first widely adopted cryptocurrency, highlights the strengths of blockchain technology in enhancing security and trust. Its PoW consensus mechanism ensures that transactions are validated and secure, although scalability challenges persist. In contrast, Ethereum builds on Bitcoin’s foundation by introducing smart contracts, which automate transactions based on predefined conditions. This innovation significantly improves transaction efficiency and decreases the likelihood of human error, making Ethereum particularly valuable in decentralised finance (DeFi). Bitcoin is the first and most widely recognised application of blockchain technology. 2008 Bitcoin revolutionised the financial landscape by enabling peer-to-peer transactions without a central authority. The PoW consensus mechanism employed by Bitcoin ensures that all transactions are validated and securely recorded on the blockchain. As shown in Figure 2, the introduction of Bitcoin marked a significant milestone in the timeline of blockchain development, laying the foundation for future innovations in cryptocurrencies and decentralised systems. However, Bitcoin’s transparency, security, and real-time transaction verification are tempered by its scalability limitations, which remain challenging to adopt as a global payment system.

Binance Coin (BNB), utilised within the Binance ecosystem, exemplifies blockchain’s potential to streamline transactions on a specific platform. BNB provides reduced transaction costs and faster processing times, especially when leveraged on Binance Smart Chain (BSC), which can process thousands of transactions per second at minimal costs. However, BNB’s utility is primarily confined to the Binance ecosystem, which limits its broader application compared to Bitcoin or Ethereum. This comparative study is a cutting-edge contribution to FinTech, as it explores the integration of QMS and blockchain technologies in a novel and comprehensive manner. The rapid advancement of AI and its increasing integration into blockchain and QMS since 2023 indicate that the future of FinTech will likely involve a convergence of these technologies. As cryptocurrency projects continue to evolve in 2024, this research underscores the significance of developing comprehensive frameworks that leverage the potential of blockchain to enhance the quality of financial transactions and related processes. This new approach can redefine both fields, offering more resilient, secure, and efficient systems for managing quality in the digital era.

Blockchain is also used in many projects, such as healthcare, gaming and digital collectables, energy and sustainability, real estate, government and voting, charity, and crowdfunding.

For healthcare, we could highlight three successful projects. The first project is MediBloc; this allows secure and efficient management and sharing of patient data, and all data remains confidential. It is followed by Patientory, a decentralised application for storing health information; it also provides total privacy. Solve.Care, on the other hand, enables healthcare administration, which improves payment processes and better scheduling of patient appointments.

Gaming and digital collectables: I would like to highlight 3 major successful projects again. The first project or game is Axie Infinity, where players fight virtual creatures and can deposit cryptocurrencies. The second game is CryptoKitties, which is designed for collecting digital cats and where players receive NFTs when they play. The third project is the Decentraland platform, which is also a virtual reality game, where users can sell, buy, or build virtual real estate using blockchain which has seen a vast number of users in 2024 and has grown significantly.

Energy and sustainability: I would highlight two projects. The first is Power Ledger, which allows energy trading between individuals and the tracking of renewable energy certificates on the blockchain. WePower enables energy renewal to facilitate investment and trading in energy.

In real estate, I would highlight two projects. The first is Propy, which simplifies real estate transactions using blockchain, ensuring less fraud and greater transparency. The second project is Qbitquity, which uses blockchain to manage land registries and keep records of transactions for real estate.

Government and voting: This includes two projects: Voatz, a voting system on the blockchain that provides non-replicable votes and ensures security, and the Estonia e-Residency Programme, which manages digital identities and provides secure internet services for all citizens and businesses.

Charity and crowdfunding include the Giveth project, which is a decentralised funding platform that supports charitable projects.

All of these projects demonstrate how diverse and revolutionary blockchain technology is.

Overall, Table 2 offers a foundational response to the research question by comparing traditional quality management with blockchain technology in terms of transparency, security, and efficiency. It emphasises the advantages of blockchain—including decentralisation, high data integrity, automation, and enhanced security—that contribute to superior quality in financial transactions compared to traditional systems, thereby addressing key aspects of quality improvements within FinTech.

5. Discussion

Blockchain technology enhances financial security, efficiency, and transparency through its decentralised architecture and cryptographic validation methods. Unlike traditional centralised systems, blockchain eliminates single points of failure, ensuring data integrity via consensus mechanisms such as PoS or PoW. For instance, Bitcoin and Ethereum securely validate transactions across distributed networks, preventing tampering and unauthorised alterations. Efficiency is further improved by automating processes through smart contracts, which remove intermediaries and streamline operations in applications like cross-border payments. Another defining feature of blockchain is its transparency, as all transactions are recorded on an immutable public ledger, providing real-time visibility and auditable records. This transparency extends beyond financial systems to sectors like supply chain management, where blockchain enhances traceability and accountability. Nevertheless, challenges such as regulatory compliance and scalability persist. Emerging solutions, including Layer 2 scaling and green blockchain initiatives, are being developed to address these limitations, facilitating blockchain integration into broader quality management frameworks.

The answer to RQ: Blockchain technology enhances financial transactions by improving security with decentralised validation, increasing efficiency through automation and removing intermediaries, and ensuring transparency via immutable public ledgers. However, it faces challenges regarding scalability, regulatory compliance, and energy consumption.

5.1. Blockchain and Quality Management: A Comparative Perspective

Blockchain technology has fundamentally reshaped how transactions are secured and managed, particularly within the financial services sector, by introducing innovative advancements in transparency, security, and accountability. Conversely, quality management has historically concentrated on enhancing processes and products systematically to achieve industry standards consistently. This section juxtaposes the roles of blockchain technology and quality management principles in improving operational processes, transparency, and accountability while delving into the broader notion of “quality” concerning sustainable practices, such as bicycling, which enhance operational efficiency and overall quality of life.

Transparency and accountability are essential components of QMS. Traditional QMS frameworks, such as those adhering to ISO 9001 standards, emphasise process documentation, regular audits, and stakeholder engagement to maintain quality standards. In contrast, blockchain’s decentralised and immutable ledger presents a groundbreaking alternative, offering unmatched transparency and accountability. Unlike conventional systems, where manual documentation and audits can be susceptible to errors or manipulation, blockchain guarantees that every transaction or process step is recorded and validated across a distributed network. This functionality eliminates the possibility of retroactive data tampering, effectively establishing a new standard for data integrity.

The ability of blockchain to transparently log and validate financial transactions mirrors the role of quality systems in manufacturing and service industries, where meticulous process documentation ensures product consistency and compliance. Furthermore, blockchain’s decentralised structure enhances accountability by making each action traceable to its source, removing the need for oversight from a centralised authority. This closely aligns with established quality control mechanisms, which focus on monitoring and assuring the reliability of processes and products [40,41].

Both blockchain technology and traditional quality management systems aim to address inefficiencies, yet they do so through fundamentally different methods. Blockchain eliminates intermediaries, particularly in financial systems, allowing faster and more cost-effective peer-to-peer transactions. For instance, cross-border blockchain payments can be completed in minutes, starkly contrasting with the days conventional banks require. Moreover, these transactions entail significantly lower fees, a significant advantage for developing nations where banking infrastructure can be costly and inefficient.

On the other hand, traditional QMS focuses on reducing inefficiencies by standardising processes, minimising variability, and identifying waste within operational workflows. Frameworks such as Six Sigma and Lean Management assist organisations in systematically streamlining operations and decreasing errors. While blockchain primarily aims to secure and validate transactions, its potential to enhance operational efficiency aligns well with the objectives of traditional QMS. For example, integrating blockchain into supply chain operations can improve data flow efficiency by automating and simplifying processes that typically require redundant verification. By removing unnecessary intermediaries and manual checks, blockchain fosters more streamlined and transparent operational systems, complementing the foundational principles of quality management [42,43].

In various national contexts, countries like the Netherlands and Denmark, recognised for their robust cycling cultures, have effectively harnessed blockchain technology to enhance public service quality and promote environmental sustainability. These nations are exploring blockchain-based systems to monitor and incentivise eco-friendly behaviours, such as cycling, through platforms that issue “sustainability credits” or tokens. Such initiatives improve transparency in tracking carbon offsets and improve urban mobility and quality of life. By integrating blockchain into their sustainability efforts, these countries demonstrate how technology can transcend financial transactions to tackle broader societal objectives, including public health and environmental sustainability [44].

Blockchain’s security benefits offer transformative potential when compared to traditional quality systems. Industries such as manufacturing often rely on centralised databases and manual processes susceptible to errors and security breaches. In contrast, blockchain employs a decentralised and encrypted ledger, ensuring tamper-proof data integrity. This is especially crucial in sectors like healthcare and pharmaceuticals, where protecting sensitive information is paramount. By integrating blockchain with quality frameworks, organisations can enable real-time tracking of quality control measures, establishing immutable records that reduce the need for manual audits, enhance compliance, and improve overall accountability [45].

Countries such as Estonia and Switzerland exemplify the broader systemic implications of blockchain technology by employing it for secure digital identities and public records management. Estonia’s “e-Residency” program effectively safeguards personal data through blockchain, facilitating efficient and high-quality access to government services. These applications showcase blockchain’s potential to enhance transparency, efficiency, and security, all while upholding high standards in public service delivery [46,47].

The comparison between blockchain technology and traditional quality systems highlights considerable potential for integration. The transparency and traceability offered by blockchain closely align with the quality management principles of accountability and compliance. For example, incorporating blockchain into ISO 9001 systems would create immutable records of production processes, thereby enhancing reliability and mitigating non-compliance risks [30]. In healthcare, blockchain could provide a secure platform for managing patient data [48], ensuring regulatory compliance and improving operational efficiency. However, these synergies are accompanied by challenges, such as scalability, regulatory hurdles, and the energy demands of certain blockchain technologies, which require thorough examination. Addressing these complexities is vital for fully realising blockchain’s potential to complement and enhance traditional quality systems across various industries.

Blockchain enhances security in QMS through decentralised validation and cryptographic encryption, ensuring that process data remains tamper-proof and accurate. For example, in supply chain management, blockchain can track quality control measures by recording every step of production on an immutable ledger, reducing the risk of data manipulation and fraud. Regarding efficiency, blockchain automates manual processes with smart contracts, such as automating compliance checks in ISO-based frameworks, eliminating redundant paperwork, and accelerating quality audits. Transparency is achieved by providing real-time visibility into processes, as demonstrated in industries like food safety, where blockchain ensures end-to-end traceability of products [49]. These mechanisms collectively align blockchain’s capabilities with the principles of operational excellence, offering a transformative approach to improving both process and product quality while addressing traditional inefficiencies in QMS [29,40,50].

5.2. Scientific Contribution and Novelty

This research presents a novel inquiry into the synergy between blockchain technology and QMS within the financial services sector. While blockchain applications, mainly through cryptocurrencies such as Bitcoin and Ethereum, have been extensively documented, their integration with conventional quality management principles requires further exploration. This study facilitates a comparative analysis of the evolution of both blockchain and QMS, as delineated in Table 1, and provides a timeline of blockchain’s developmental milestones, illustrated in Figure 2. It introduces new perspectives on the potential interrelationship between these two domains in contemporary financial systems.

The scientific merit of this investigation emerges from its comprehensive juxtaposition of blockchain’s technological advancements alongside significant developments in QMS. Table 1 illustrates the alignment of blockchain milestones with the progression of QMS methodologies. While blockchain technology has fundamentally transformed financial transactions by enhancing security, transparency, and efficiency, the parallel advancements in quality management—embodied in frameworks such as TQM and Six Sigma—have refined operational excellence and process consistency across various industries. This comparative analysis is distinctive, as it interconnects two seemingly disparate yet increasingly intertwined fields: the decentralisation and cryptographic security inherent in blockchain and the structured methodologies aimed at quality enhancement and risk mitigation within QMS.

Moreover, Figure 2 presents a historical timeline encapsulating the swift advancements in blockchain technology from its inception in 1991 to its anticipated future trajectories through 2024. This timeline accentuates pivotal innovations brought forth by Bitcoin and Ethereum, particularly regarding mechanisms such as smart contracts and PoS. Concurrently, it delineates the scalability challenges and governance issues that have surfaced within the industry, exemplified by incidents like the collapse of FTX in 2022. This study posits a novel framework for evaluating how blockchain’s decentralised ledger technology can fortify the transparency and traceability of quality control processes by aligning these technological advancements with the ongoing enhancements in quality management systems.

Furthermore, this research enriches the existing literature by elucidating the potential of blockchain to bolster regulatory compliance, prevent fraud, and enhance transaction efficiency in financial services—areas pivotal to quality management and blockchain technologies. By integrating these two fields, the study reveals new avenues for future innovation, particularly in sectors where transparency, security, and quality assurance are critical.

In conclusion, this research’s originality is encapsulated in its comparative methodology, which proffers a unique lens through which to consider the transformative impact of blockchain technology on traditional quality management systems and operational practices within the financial services industry.

6. Conclusions

In synthesis, blockchain technology’s potential to augment the quality of transactions within the financial technology sector is incontrovertible. Blockchain’s decentralised nature and transparent ledger address numerous inefficiencies endemic to conventional monetary systems. Despite challenges, including scalability, energy consumption, and regulatory hurdles, ongoing advancements in blockchain technology are anticipated to ameliorate these issues, facilitating broader adoption and enhancing the quality of financial services.

Furthermore, blockchain technology and traditional QMS converge on the shared augmenting operational efficiency, transparency, and accountability. Blockchain technology excels in bolstering data security and diminishing costs via decentralisation, whereas traditional quality systems provide a structured methodology for process enhancement and error minimisation. Integrating these systems holds considerable potential, especially in critical product quality and data integrity sectors. As blockchain technology continues to evolve, its integration with quality management principles is expected to proliferate, offering novel avenues to improve operational efficiency and product quality. Moreover, national initiatives, such as the implementation of blockchain in public services by Estonia and the integration of blockchain into sustainability efforts by the Netherlands, exemplify how blockchain and quality management can collaboratively enhance the quality of life at both individual and societal levels.

However, this study acknowledges certain limitations. The mixed-methods approach, while providing a holistic view of the impact of blockchain on transaction quality, is constrained by the limited number of literature reviews, potentially not capturing the full spectrum of experiences with blockchain technology across diverse sectors. Additionally, despite offering insightful observations, the case studies of Bitcoin, Ethereum, and Binance Coin may not encompass the entire range of blockchain applications in FinTech. The rapidly evolving landscape of blockchain technology further implies that some findings might soon become obsolete as new developments and regulations emerge.

Notwithstanding these challenges, blockchain technology offers substantial enhancements to transactional quality. Among the most critical challenges is scalability; the decentralised architecture of blockchain necessitates verification of every transaction by a network of nodes, potentially decelerating processing times as the network expands. For instance, the average transaction time for Bitcoin stands at approximately 10 min, significantly lagging behind traditional payment systems like Visa, which boasts the capacity to process thousands of transactions per second. Solutions to address scalability, such as the Lightning Network for Bitcoin, are under development but remain in the nascent stages of deployment.

Another significant concern is the energy consumption of PoW-based blockchain networks, such as Bitcoin, which demand substantial computational power to solve cryptographic puzzles and validate transactions. This has sparked debates regarding the environmental footprint of blockchain technology. Some networks, like Ethereum, are transitioning to PoS consensus mechanisms, which are markedly less energy-intensive, yet the widespread adoption of these solutions is still unfolding. Regulatory challenges also constitute a significant impediment to fully realising blockchain’s potential. The association of cryptocurrencies with illicit activities and market volatility has led to apprehension among governments and financial institutions. Consequently, regulatory frameworks to oversee blockchain and cryptocurrencies are still being established. Clear and consistent regulation is paramount to engendering trust in blockchain-based systems, especially in the financial services sector, where quality is intricately linked to regulatory compliance.

In conclusion, blockchain’s future in enhancing transactional quality appears promising despite the hurdles. The literature posits that as blockchain technology matures, it will become an indispensable component of FinTech, ameliorating the quality of financial services across multiple dimensions, including security, transparency, and efficiency. Furthermore, as blockchain adoption extends across more industries for quality management, its role in ensuring compliance with regulatory standards and enhancing operational efficiency is set to become increasingly significant.