Fortifying Financial Transactions with Blockchain

Abstract

: In recent years, the exponential rise of digital banking and online financial services often grows, the demand for secure and transparent and tamper-proof transaction systems. This paper proposes a blockchain based framework, called "Fortifying Financial Transactions with Blockchain", which aims at improving the integrity and reliability of financial operations as decentralised verification and smart contracts. The whole system utilizes smart contracts coded in Solidity enforced on a local blockchain (Ganache) to capture and to authenticate each interaction about the flow of the value between user wallets integrated using an extension called MetaMask. By using the hashing algorithm SHA-3 (keccak256) for the integrity of the exchanged data, and the transaction of data is approved by business logic on the blockchain, so it should be impossible to falsify the exchanged data to ensure immutability of the data exchanged between counterparties. In addition, an off-chain Node.js backend enables writing the block to an internal audit log, indexing, and the ability to resolve administrative disputes through compensating transactions, and a frontend built on React can give a real time view of transactions that are still pending and pending confirmations. Experimental results on the local blockchain show that the proposed approach improves the transaction traceability and auditability to a large extent, under a reasonable condition on economical consumption of gas and lesser value of transaction execution time. The system thus provides a secure, auditable and scalable model that could be used for next generation digital banking environments.