Cheque Processing using Traditional Blockchain Issues and An Approach to Secure Processing
M Natarajan, A. Bharathi · Research Square · 2023
Abstract Blockchain technologies, particularly cryptocurrency, have piqued the interest of academics, governments, and business in recent times. Despite the availability of a wide range of blockchain-based solutions, the lack of tools to analyses these dynamic and distributed networks may stymie the field's advancement. Many of the benefits of block chain technology can only be seen at large scales. This paper conducts a thorough investigation of blockchain-related concerns. Summarizes the issues with traditional blockchain techniques. The paper also offers a framework for secure transaction processing and suggests the steps involved in creating a blockchain. Furthermore, suggestions have been made for possible futre study directions in the topic. The purpose of this study is to evaluate the current Applications that are based on the Blockchain Technology in various fields and to build a better model for an application that is used in the financial sector. It is necessary to adapt the banking system in the financial sector to the current situation in order to meet the requirements. Checks are processed using the present technique, which, although having certain restrictions, is more focused. Following the analysis, the study proceeded with the goal of resolving the limits of the system for the processing and clearing of cheques by shortening the amount of time required for processing and increasing the level of security. The disruptive nature of Blockchain technology was helpful in applying the technology to the creation of a secure system for the processing of cheques. In order to offer a sufficiently upgraded framework, already existing techniques for the processing of cheques were discovered, and their limitations were determined. To achieve the same goals, smart contracts were utilized to automatically finish the operation of check processing by issuing a valid tokenized cheque to update the information in IPFS blockchain. This allowed for the same goals to be achieved. The cheque processing system is composed of many stages, such as the administrator phase and the phase in which checks are generated by utilizing ERC20 tokens. This is to validate the tokenized check that was produced by a bank that has been granted permission. The subsequent step is known as the check details phase. After this, the user phase will come into play, at which point the beneficiary data will be entered. At this point, validation is carried out by signing the cheque and then cancelling the transaction after it has been initiated. After the completed transaction is published in the IPFS blockchain, the bank will validate the compliance features. In order to check for issues connected to the issue, several security technologies are utilized. The performance is evaluated, and then recommendations for enhancing the performance on mathematical models are provided.