A Blockchain-Based Solution for Securing Central Bank Bond Management
Sonia Akter, Khandakar Md Shafin, Saha Reno · 2024
The management of central bank bonds faces significant challenges, including security vulnerabilities, inefficient processes, and the need for enhanced regulatory compliance. Traditional systems are unable to address these issues effectively, leading to potential risks and inefficiencies. There is a critical need for a solid and transparent system to secure and streamline bond management operations. To address these challenges, we propose a blockchain-based framework for securing central bank bond management. In this paper, we have designed and implemented a comprehensive blockchain infrastructure utilizing Smart Contracts, Fully Homomorphic Encryption (FHE), and a Proof of Authority with Sharding and Byzantine Fault Tolerance (PoA-SBFT) consensus mechanism. We integrated FHE into the Microsoft SEAL library to ensure secure data exchanges and developed customized smart contracts to manage transactions and regulatory compliance. Our result analysis demonstrates significant improvements in transaction throughput and latency, indicating the system’s effectiveness and stability under various conditions.