Blockchain technology offers a decentralized, reliable, and transparent structure, bringing about a profound transformation in financial systems. Initially developed in 2008 to serve as the foundation of Bitcoin, this technology is now widely utilized across various sectors, including finance, insurance, supply chain management, healthcare, and public services. By storing transactions in a distributed ledger, blockchain prevents data manipulation, enhances security, and reduces costs. Notably, cryptocurrencies, smart contracts, and decentralized finance applications enable the financial ecosystem to be reshaped. Blockchain-based payment systems eliminate the need for intermediaries, increasing transaction speed while providing more efficient and secure solutions in areas ranging from securities trading to insurance services. Furthermore, central banks' digital currency projects and blockchain integration indicate that this technology may play an even greater role in the future financial system. This study examines the fundamental components of blockchain technology and its current and potential applications in the financial sector, assessing its impact on the system. By analyzing both the advantages and disadvantages of blockchain, the study highlights that blockchain is not only a crucial innovation for financial systems but also a transformative technology with the potential to revolutionize other industries.