Embodiments of present disclosure discloses system and method for conversion of structured database into unstructured database. Initially, structured database and database descriptor is retrieved in distributed environment. Structured database comprises data fields, and each of the data fields corresponds to financial transaction. Optimized target data model is generated for storing data in the unstructured database, based on at least one of database objects extracted from data fields of structured database, and pre-defined conversion rules. Further, a Blockchain comprising blocks corresponding to each financial transaction of structured database. Each of the blocks comprise at least one of extracted database object. Conversion of the database object of each of the blocks into data fields of unstructured database is performed based on optimized target data model and notification corresponding to data fields of unstructured database is generated which are associated with discrepancies corresponding to the financial transaction.