The Perceptions of Practitioners in the Financial Service Industry Concerned with the Protection of Data Security in Blockchain-Based Applications

Abstract

Blockchain technology is a distributed electronic ledger containing data stored in digital code, aggregated onto a network of computers, operating on the internet. Its applications include the recording of digital information and transactions (e.g., assets, legal, medical, property, real estate and insurance, copyrights and licenses, the tracking of supply chains, online voting and the execution of contracts). Practitioners in Blockchain technology, especially in the financial sector, must be prepared to address the many risks posed by breaches of data security. The issues and rules applying to the security of data processed by Blockchain applications have not yet been comprehensively evaluated from the perspectives of practitioners. In this project dissertation, the concepts of the Technology Acceptance and the Customer Perspective models, derived from empirical data provided by practitioners, were integrated with the principles of a legal analysis. Semi-structured interviews were conducted with a purposive sample consisting of two software developers and three lawyers associated with the financial services industry in Saudi Arabia and United Arab Emirates. The results of a thematic analysis of the interview transcripts were integrated with an interpretation of existing Blockchain regulations together with a review of the academic literature. The following questions were addressed: How is existing legislation complied with regarding data security issues associated with Blockchain technology? What legislation might be implemented in the future to regulate data security issues associated with Blockchain technology? What legal conflicts and public issues are involved? This project dissertation contributes to a gap in the literature by explaining how the development of Blockchain in Saudi Arabia, the United Arab Emirates and Europe is hampered by challenges caused by the conflicting provisions of existing and future national and international legal frameworks. The results of the thematic analysis were consistent with the hypothesis that Blockchain developers and legal institutions can work together. Each must recognise the unique affordances of the other. Although the five participants did not reach an overlapping consensus, the overall conclusion is that the degree to which Blockchain applications remain secure in the future in a globalized society may depend on how effectively Blockchain software developers can work together with legal institutions and other practitioners.