A Blockchain Based Decentralized Transaction Settlement System in Banking Sector

Abstract

Blockchain, the underlying technology behind Bit-coin, is an emerging technology in industry. Blockchain has the power to reform the existing business processes more democratic, transparent, secure, and efficient. Banking industries are the first movers that capitalize the disruptive potential of this technology. The indian banking system is one of the complex bank payment system in this world. The current infrastructure that is used by indian bank system is real time gross settlement system based and it follows a centralized architecture. Due to this centralized architecture the processing of transactions are slow and cum-bersome. It also causes large amount for security and recovery purposes. The real time gross settlement based system demands high need for security, resilience, and performance. Moving from traditional system to blockchain platform is not the prior concern but making a system that provide security, confidentiality, and decentralized money lending mechanism is the core idea. Here proposed a novel system that enable a decentralized Banking system and services based on Ethereum blockchain platform. The system support different services including money deposit, money transfer and loan checking etc. using the distributed ledger technology.