A Framework for Cheque Processing Using Blockchain Technology and Smart Contracts

Abstract

Processing checks has long been an integral element of the banking industry, allowing for safe and hassle-free money transfers. However, there are several issues with the efficiency, timeliness, and openness of the conventional ways of processing cheques. This study presents a system for cheque processing that makes use of blockchain technology and smart contracts to address these problems. Blockchain's immutability and decentralization, together with smart contracts' automaticity and programmability, are used in this framework to improve the process of checking. The architecture uses a distributed ledger to guarantee openness, safety, and auditability at every stage. To facilitate streamlined and unchangeable record-keeping, this framework proposes to digitize checks and represent them as unique tokens on the blockchain. Cheque verification, permission, clearing, and settlement are just some of the processes that may be automated with the use of smart contracts.