DISTRIBUTED BANKING SYSTEM USING BLOCKCHAIN TECHNOLOGY

Computer Engineering

The Blockchain is a technology that will allow transactions simply, safely, effectively, and also safely. This is a Very promising technology. It’s already in a lot of places. It can also solve any problem in the banking sector. This technology became famous after introducing the first cryptocurrency, which is known as bitcoin. Right now, there is a huge problem with banking, and the Blockchain can solve these problems. This paper will demonstrate transacting over a secure, blockchain-based network and therefore eliminate the need for intermediary entities. Blockchain is a decentralized ledger used to securely exchange digital currency, and perform deals and transactions. Each member of the network has access to the latest copy of the encrypted ledger so that they can validate a new transaction. The blockchain ledger is a collection of all Bitcoin transactions executed in the past. Basically, it's a distributed database which maintains a continuously growing tamper proof data structure blocks which holds batches of individual transactions. The completed blocks are added in a linear and chronological order. Each block contains a timestamp and information link which points to a previous block. Bitcoin is peer-to-peer permission-less network that allows every user to connect to the network and send new transaction to verify and create new blocks. Blockchain, also referred to as a distributed ledger technology, stores different transactions /operations during a chain of blocks in a very distributed manner while not having a trusted third-party. The Blockchain could be a chain of blocks each is being a storehouse that stores information pertaining to a transaction and links to the sooner block within the same trans-action. These connected blocks form a sequential chain providing a pathway of the essential transaction. There are many threats and frauds detected in industry. A centralized database is employed by banking industry which makes the attacker easy to urge access to data and this makes the system insecure. the dis-advantage of this centralized system may be reduced by reforming the system by implementing blockchain technology without using tokens. Blockchain uses decentralized architecture for storing and accessing data over the database. This reduces attacks on database hacked. Transactions done through the blockchain technology are verified by each block within the chain, which can make the transaction safer and help banking industry work faster. Proposed system aims at giving these functionalities in a very distributed banking industry using blockchain, which is able to be at par with this methodologies. It'll also concentrate on the restrictions while implementing blockchain and future scope.

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