Exploring the Risks of Blockchain to the Financial Market and Its Countermeasures

Blockchain technology, which has emerged as a distributed ledger technology, has been widely applied in different sectors because of the advancement of Internet technology. However, the use of Blockchain technology also poses numerous risks that need to be addressed. To better understand and manage these risks, the paper, by referring to relevant literature and materials and refining them, finally classified them into three major categories: technical risk, operational risk, and legal risk. Technical risk involves the reliability, scalability, and security of Blockchain systems, while operational risk pertains to the potential for user error, and malicious attacks. Legal risk includes legal deficiencies and regulatory failures. Based on these categories, the paper proposes suggestions and solutions in order to reduce the risks associated with Blockchain technology. These solutions include measures such as the application of new technologies, optimization of algorithms, specification, and training of personnel, and construction of laws and regulations. Finally, several suggestions are proposed to address the research direction of Blockchain risk. In the future, we may continue to conduct in-depth research on strengthening financial regulation and central bank digital currency.