A NOVEL DIGITAL CHEQUE CLEARANCE AND SECURE VERIFICATION BASED ON BLOCKCHAIN TECHNOLOGY
International Research Journal of Modernization in Engineering Technology and Science · 2024
Earlier cheque deposit (cheque truncation system) systems require manual operations such as manually visiting banks to submit cheques which require 3 days' time and it is difficult for bank employees to identify fraud cheques as this requires lots of expertise.To reduce this time and to detect fraud, the author of this paper is introducing Blockchain technology for quick cheque clearance process in less than 24 hours.Blockchain has inbuilt support for data reliability, integrity and security which makes Blockchain data immutable.Blockchain stores each data as block/transaction and then associates each block with unique Hash code and maintains these blocks at multiple nodes or servers.Before storing a new record, Blockchain verifies the Hashcode of each block and if any block data is modified then it results in a different Hashcode which will raise an attack alarm.Our system aims to streamline this process by digitizing checks and utilizing blockchain for secure verification.The system allows users to issue digital cheques, which are then validated and cleared through a decentralized blockchain network.This approach enhances security, reduces processing time, and provides a transparent and tamper-proof transaction history.We present a detailed architecture, algorithms, and implementation steps, highlighting the benefits of our solution for modernizing cheque processing systems