Aşağıda yayınladığımız yazılar, Prof. Dr. Selim Yazıcı’nın Özyeğin Üniversitesi, Financial Engineering and Risk Management (FERM) Yüksek Lisans Programında vermiş olduğu Financial Technologies dersinde öğrencilerin bitirme ödevi olarak hazırladıkları çalışmalardan oluşmaktadır. Yazılar kendilerinden izin alınarak yayınlanmaktadır.

Why do People Excited by the Idea of Blockchain?

Hazırlayan: Mesut Ayvalı

Recently, when we talk about the future of technology, the majority of the technology insiders have excited about the blockchain and its idea.

Particularly, for the last three decades, humanity have discovered various popular and important developments which are changing our lives, our way of life, way we work, way of the business and the way we connect with others such as the internet, smart tools, and others. Although some of technology developments such as machine learning and artificial intelligence technology attempts sound cooler than blockchain, tech insiders are considering blockchain as a biggest revolution in the future that will re-shape the institution by the digitalization. Even if it seems that blockchain is complex technology from the far; but the idea is simple. All transactions are recorded in a digital ledger which is being shared among the participants. However, in this article, I’m going to focus on the fact that why people are excited by the idea of blockchain.

Here are the core reasons behind this idea that I’m thinking.

1. Its De-Centralized Structure

After the 2008 big financial crisis, people from all over the world have found banks and financial institutions guilty due to their role and cause to the crisis. When we look at the causes of the financial crises, (starting from the first financial crisis as its know at Rome 3rd Century BC, to 2008 financial crisis) the greedy and irresponsible behavior of politicians and owners of financial institutions has often been the most important source. Not only for 2008 big financial crisis, but history is always repeating itself.

These approaches of financial institutions have led many people to seek alternatives in the financial world but people who lost their trust to the state and institutions found it reasonable to support the idea of transferring the element of trust to a program structure in which they agreed to their agreement.

2. Pursuit From Internet of Information to Internet of Value

Starting from the 1990s, most of the sectors have been disrupted by the expanding usage of world wide web so far. In particular, the business models in the banks and financial institutions have changed sharply and the ones who have missed or failed to keep up the trend had serious profitability problems. In an environment where the Internet has changed all business models exponentially, banks and financial institutions have decided to invest millions of dollars to utilize the benefits they provide instead of fighting technology.

In the last decade, we see that the trend has been started to move from internet of information to internet of value. The idea of “Why can’t we do this on the internet?” is prepared to change the business and its structures of the existing organizations in a way that we have never seen before. In order to implement Blockchain technology, they are devoting important resources to conduct new experiments. This also increases the speed of use of blockchain technology, but I will not mention it in this article. It is very clear that the cryptocurrencies proved the applicability of the blockchain technologies through the internet and took the front seats. Moreover, entrepreneurs and developers are still trying to find out more areas to apply by trying.

3. Strong Security that hasn’t Created Before

Well, there are more thing to say about security due to main reason of the blockchain creation. By the growing popularity of e-marketing and business, we are facing new different types of fraud so far. Fraud in payment-processing services are one of the most important threats to all e-commerce markets, as its main working principles are based upon online transactions. It involves not only identity theft but also private property theft, or illegal takeover of a customers payment information to make purchases or remove funds. To narrow this kind of events, companies are implementing fraud detection systems by the blockchain technology solutions.

Thanks to its distributed ledger technology (DLT), blockchain promises a high level of security with a very low probability of mathematical hacking due to hashing and cryptology being used contrary to traditional ways. Security investments on the fintech projects can be half of the cost of the project in some cases. In these kinds of cases, blockchain technologies are providing very cost friendly and securest environments than traditional ways.

4. Cheap Solutions for Expensive Operations

Blockchain offers very cheap investment cost and inexpensive services to the customers due to well-designed free open source package to the entities on the contrary of traditional financial transactions. Thanks to Satoshi Nakamoto, who is/are the creator/creators of the Bitcoin have shared the code behind the system as free. For this reason, entrepreneurs and developers have been provided with a powerful incentive for their environment of usage and created an environment to push boundaries.

Furthermore, blockchain creates efficiency in transferring money (value) over the countries in order to speed and reduce the cost tremendously.

5. It Can Be Applied to Everywhere by The Smart Contracts

Smart contracts provide low cost, strong security assessment, flexibility and creates more applicable scenarios to many areas.

Smart contracts operate as autonomous actors; whose behavior is completely predictable. As such, they can be trusted to drive forward any on-chain logic that can be expressed as a function of on-chain data inputs, provided that the data they need to manage is within their own reach. We can conclude that smart contracts also give rise to the concept of “decentralized autonomous organizations’’ (DAOs), entities on the blockchain whose behavior may be modified if a certain process that is encoded in the contract is followed. The simplest example is that of a smart contract that calls another contract by address to perform its main function. This address resides on the mutable part of the contract’s internal database. The contract also carries a list of members, addresses (public keys) that get to vote on its behavior. A rule can be included in the contract so that if a majority of those voters vote in a certain way, the contract will modify its behavior by calling the address that received the majority of the votes to execute its main function.[i]

Even though more of these reasons are behind the blockchain technology, these are the 5 most important items from my point of view. However, I’m leaving this article as a note to the history in order to see both “how my thoughts will (won’t) change” and “what will bring future to blockchain” in the near future.


[i] K. Christidis, M. Devetsiokiotis: Blockchains and Smart Contracts for the IoT, p2297

This paper was prepared as a class work for Financial Technology course given by Prof. Selim YAZICI at Ozyegin University, Graduate School of Business, Financial Engineering and Risk Management Program.

İstanbul Üniversitesi, Siyasal Bilgiler Fakültesi, İşletme Bölümü öğretim üyesidir. Ayrıca, Marmara Üniversitesi, Bankacılık ve Sigortacılık Enstitüsü'nde, Sigortacılık Bölümü'nde 2009-2016 yılları arasında misafir öğretim üyesi olarak "E-Sigortacılık" dersini vermiştir. 2019 yılından beri misafir öğretim üyesi olarak Özyeğin Üniversitesi, Financial Engineering and Risk Management (FERM) Yüksek Lisans Programı'nda Financial Technologies dersini vermektedir. Teknolojiye ve teknolojinin yaratacağı fırsatlara inanmış bir akademisyen olarak, 2000'li yılların başında, teknolojideki değişimin finansal kuruluşların üretim, pazarlama, satış, dağıtım ve satış sonrası süreçlerinde yaratacağı etkileri ve e-ticaret olanaklarını değerlendiren araştırmalar yapmış ve sigortacılık sektörüne özel bir envanter oluşturmuştur. Bu çalışmaların sonuçlarını, ortak yazar olarak yer aldığı "Elektronik Sigortacılık" (2002) adlı kitabında yayınlamıştır. Daha sonra, finansal hizmetler dünyasındaki teknolojik değişimi ve müşterilerin dijitalleşmesini gözlemleyerek, özellikle bankacılık ve sigortacılık sektöründe dijital dönüşüme yönelik projeler geliştirmiştir. Teknolojinin finansal hizmetler sektöründe kullanımı ve çevik yapılar olan start-upların bu alandaki girişimcilik faaliyetlerini içeren FinTech ve InsurTech konuları ilgi alanını oluşturmaktadır. Girişimcilik, Finansal Teknolojiler, Dijital Sigortacılık, Proje Yönetimi, İş Sürekliliği Yönetimi, İşletme Yönetimi, Uluslararası İşletmecilik ve Örgütsel Davranış konularında dersler vermektedir. Finansal teknolojiler konusunda girişimcilerin ihtiyaç duyabileceği tüm alanları kapsayan ve ülkemizde ilk olarak FinTech İstanbul tarafından gerçekleştirilen "FinTech 101 Eğitim Programı"nın şekillenmesini sağlamıştır. Öğrenen Organizasyonlar (2001), Elektronik Sigortacılık (2002), E-Öğrenme (2004) ve İş Sürekliliği Yönetimi (2013) başlıklı yayınlanmış dört kitabı bulunmaktadır. TSEV ve TSPB'nin eğitmenlerinden olup bankalar ve sigorta şirketleri için çeşitli konularda eğitim programları düzenlemiştir.