ORIGINAL RESEARCH article
Front. Blockchain
Sec. Financial Blockchain
Volume 8 - 2025 | doi: 10.3389/fbloc.2025.1551970
Analyzing the Impact of Blockchain Technology on Banking Transaction Costs Using the Random Forest Method
Provisionally accepted
- Ajman University, Ajman, United Arab Emirates
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The rapid advancement of Blockchain technology has significantly benefited banks with more efficiency, highly secured activities, compliance, fraud prevention, and risk control. All previous studies focused on stakeholders' perceptions and ignored measuring the value of blockchain adoption. This study addresses this gap by quantifying and rating blockchain's impact on reducing banking transaction costs. The data has been collected from 17 of 20 UAE national banks over 2017-2023 and analyzed using the random forest method to assess the association between blockchain adoption and four transaction cost elements. The random forest technique accurately quantifies and classifies blockchain's role in cost reduction. The findings indicate that blockchain adoption significantly reduces processing, transfer, and fraud costs.This study has a visible practical and theoretical contribution as it shifts focus to quantifying blockchain's impact, providing useful insights for managers, and suggesting future research across different sectors and countries.
Keywords: Blockchain technology, transaction costs, Blockchain and Cost Saving, Processing and Transfer Costs, Random forest method
Received: 26 Dec 2024; Accepted: 16 Apr 2025.
Copyright: © 2025 Ahmed. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Ibrahim Elsiddig Ahmed, Ajman University, Ajman, United Arab Emirates
Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.