Analysis of Opportunities and Challenges of Blockchain Technology in the Islamic Banking Industry (Case Study on the Use of Smart Contracts)

https://doi.org/10.35912/jakman.v5i4.3488
Published: Sep 30, 2024

Abstract:

Purpose: This research concludes that, with a strategic and collaborative approach, blockchain technology can be an effective tool for transforming the Islamic banking industry.

Methodology: This study uses qualitative methods with literature analysis from 19 journals, one book, and three websites to explore how this technology can be applied in risk management, asset tracking, and interbank transactions.

Results: The research results reveal that this technology can reduce fraud, manipulation, and cyberattacks, as well as increase customer and sharia authority trust through transaction transparency. However, there are major challenges to overcome, such as immature regulatory aspects, the need for a strong infrastructure, and a lack of understanding of this technology among customers. This study also emphasizes the importance of collaboration between Islamic banking, regulators, and other stakeholders to maximize the potential of blockchain technology.

Limitations: Case studies on the use of smart contracts in the Sharia banking industry show that this technology can increase efficiency and Sharia compliance, reduce administration costs, and simplify transactions.

Contribution: This study describes the role of blockchain in the sukuk issuance process. Blockchain technology, which is known for its decentralization, transparency, and security characteristics, has great potential to increase efficiency and transparency in Sharia banking operations.

Keywords:
1. Blockchain
2. Efficiency
3. Sharia Banking
4. Smart Contract
5. Transparency
Authors:
1 . muhammad farhan
2 . Imsar Imsar
3 . Budi Dharma
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How to Cite
farhan, muhammad, Imsar, I., & Dharma, B. . (2024). Analysis of Opportunities and Challenges of Blockchain Technology in the Islamic Banking Industry (Case Study on the Use of Smart Contracts). Jurnal Akuntansi, Keuangan, Dan Manajemen, 5(4), 481–489. https://doi.org/10.35912/jakman.v5i4.3488
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Issue & Section
Vol. 5 No. 4 (2024): September
Articles
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References

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  2. Aripin Ai. Potensi Pemanfaatan Teknologi Blockchain Terhadap Ketepatan Waktu, Efisiensi Dan Keamanan Proses Operasi Pada Subsektor Perbankan. Univ Katolik Parahyangan. Published Online 2019Ata Sn, Hassan Ak, Selim Hs, Et Al. 43| I ’ T H I S O M?: J U R N A L E K O N O M I S Y A R I A H Analisis Pengaruh Penggunaan Teknologi Blockchain Dalam Transaksi Keuangan Pada Perbankan Syariah. Open J Syst Semnasteknomedia Online. 2022;1(1):27-35.
  3. Aulia Dd. Cetak Sdm Digital Bermutu, Kontribusi Perusahaan Teknologi Dibutuhkan. Detiknet. Published 2022. Https://Inet.Detik.Com/Cyberlife/D-5958666/Cetak-Sdm-Digital-Bermutu-Kontribusi-Perusahaan-Teknologi-Dibutuhkan
  4. Budi Dharma, Putri Gusniati, Tria Wardani. Analisis Pemanfaatan Cryptocurrency Bitcoin Sebagai Alat Alternatif Investasi. J Publ Sist Inf Dan Manaj Bisnis. 2023;2(1):175-182. Doi:10.55606/Jupsim.V2i1.858
  5. Chania, M. F., Sara, O., & Sadalia, I. (2021). Analisis Risk Dan Return Investasi Pada Ethereum Dan Saham Lq45. Studi Ilmu Manajemen Dan Organisasi, 2(2), 139–150. Https://Doi.Org/10.35912/Simo.V2i2.669
  6. Chinyamunjiko, N., Makudza, F., & Mandongwe, L. (2022). The Nexus Between Blockchain Distributed Ledger Technology And Financial Crimes. International Journal Of Financial, Accounting, And Management, 4(1), 17–30. Https://Doi.Org/10.35912/Ijfam.V4i1.815
  7. Darmawan Ag, Abdullah M, Firdausi Z, Anggraeni E, Amrozi Y. Financial Technology Dan Masa Depan Model Transaksi Keuangan Global. J Teknol Inf. 2023;7(2):233-238.
  8. Erwin Sp M, Kresna Riady D, Shabri Abd. Majid M, Marliyah M, Handayani R. Study Of Literature Financial Technology, Blockchain And Islamic Finance. Int J Educ Rev Law Soc Sci. 2022;2(1):21-32. Doi:10.54443/Ijerlas.V2i1.129
  9. Fuadi F, Afrizal A, Shabri Abd. Majid M, Marliyah M, Handayani R. A Study Of Literature: Cryptocurrency Of Syariah Perspective. Int J Econ Business, Accounting, Agric Manag Sharia Adm. 2022;2(1):1-8. Doi:10.54443/Ijebas.V2i1.135
  10. Furlonger D, Uzureau C. The Real Business Of Blockchain With David Furlonger And Christophe Uzureau.
  11. Hassan Mu, Rehmani Mh, Chen J. Privacy Preservation In Blockchain Based Iot Systems: Integration Issues, Prospects, Challenges, And Future Research Directions. Futur Gener Comput Syst. 2019;97.
  12. Haya Sf, Tambunan K. Bitcoin Sebagai Sarana Transaksi Dalam Perspektif Islam. J Ilmu Komputer, Ekon Dan Manaj. 2022;1(1):129-138.
  13. Iswandiari Y. Apa Itu Blockchain? Ternyata Begini Cara Kerjanya. Published 2022. Accessed April 29, 2024. Https://Www.Gicindonesia.Com/Jurnal/Trivia/Apa-Itu-Blockchain-Adalah
  14. Ihsan R. Peluang Dan Tantangan Penggunaan Blockchain Technology Pada Perbankan Syariah Di Indonesia. J Ekon Dan Bisnis. 2022;11(3):1037-1049.
  15. Lumbantobing, C., & Sadalia, I. (2021). Analisis Perbandingan Kinerja Cryptocurrency Bitcoin, Saham, Dan Emas Sebagai Alternatif Investasi. Studi Ilmu Manajemen Dan Organisasi, 2(1), 33–45. Https://Doi.Org/10.35912/Simo.V2i1.393
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  17. Muttaqin M, Samosir K, Dumoharis Lumban Raja H, Et Al. Big Data: Informasi Dalam Dunia Digital. Yayasan Kita Menulis; 2022.
  18. Pratomo Yg. Survei: Mayoritas Masyarakat Indonesia Kurang Paham Kripto. Published 2023. Https://Www.Liputan6.Com/Crypto/Read/5390029/Survei-Mayoritas-Masyarakat-Indonesia-Kurang-Paham-Kripto
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  21. Sasongko A. Minim Sdm, Tantangan Teknologi Blockchain. Republika. Published 2019. Https://Www.Republika.Co.Id/Berita/Pns2z9313/Minim-Sdm-Tantangan-Teknologi-Blockchain
  22. Sihombing, S., Nasution, M. R., & Sadalia, I. (2021). Analisis Fundamental Cryptocurrency Terhadap Fluktuasi Harga: Studi Kasus Tahun 2019-2020 (Cryptocurrency Fundamental Analysis Of Price Fluctuations: A Case Study Of 2019-2020). Jurnal Akuntansi, Keuangan, Dan Manajemen (Jakman), 2(3), 213–224.
  23. Sirait Fy, Fitri M, Marliyah. Islamic Financial Technology Dalam Penerapan Di Lembaga Keuangan Syariah. J Ekon Islam. 2023;4(3):211-227. Https://Creativecommons.Org/Licenses/By-Sa/4.0/
  24. Team Fe. Uae Bank Executes World’s First Blockchain Sukuk Transaction. Finadium. Published 2018. Accessed July 29, 2024. Https://Finadium.Com/Al-Hilal-Bank-Executes-Worlds-First-Blockchain-Sukuk-Transaction/
  25. Toorajipour R, Oghazi P, Sohrabpour V, Patel Pc, Mostaghel R. Block By Block: A Blockchain-Based Peer-To-Peer Business Transaction For International Trade. Technol Forecast Soc Change. 2022;180(August 2021):121714. Doi:10.1016/J.Techfore.2022.121714
  26. Qothrunnada Na, Iswanto J, Fitrotus D, Hendrarti Bg, Subekan S. Transformasi Digital Lembaga Keuangan Syariah: Peluang Dan Implementasinya Di Era Industri 4.0. Indones J Humanit Soc Sci. 2023;4(3):741-756. Https://Ejournal.Iai-Tribakti.Ac.Id/Index.Php/Ijhss
  27. Zheng Z, Xie S, Dai Hn, Et Al. An Overview On Smart Contracts: Challenges, Advances And Platforms. Futur Gener Comput Syst. 2020;105:475-491. Doi:10.1016/J.Future.2019.12.019