New Tax System based on Lightweight Blockchain Technology

Abstract

Tax records are a very important aspect for every citizen each time a resident needs to deal with financial paperwork or obtain a Tax clearance, it takes a long time due to the official letters exchanged between Authorized governmental agencies, resulting in a waste of time. And vulnerable to fraud or subject to lose, theft, or damage of tax records paper. This led to using an electronic tax record system which saves time and reduces costs these systems are susceptible to various known attacks, including denial of service, modification, and hijacking, and to secure these systems, non-fungible token (NFT) concepts utilizing the blockchain are employed which is known as secure and immutable with decentralization characteristics which provide multiple copies of the tax records and eliminate the need for official letters between Authorized governmental agencies for verification of past Tax clearance. This paper proposes an electronic Tax records system based on non-fungible tokens and a customized lightweight blockchain technology that utilizes a consensus algorithm called proof of secret sharing (PoSS) for authenticating nodes and verifying added blocks, this system is evaluated using standard blockchain with proof of work consensus algorithm evaluation parameters to demonstrate its lightweight nature, security, and reduced computational resource requirements.