Cryptocurrency Wallets and DeFi by Lightweight Cryptography to Protect Financial Procedures for Flash E-Loan System

Abstract

Digital loans offer rapid, simple, and usually paperless transactions, and have radically changed the lending industry. The whole loan process is easy to access and effective; there are a number of threats associated with the availability of data online. As a crucial kind of digital loan, flash loans put additional pressure on banks to maintain security because they return to the same block of the Blockchain, making it more likely that they will be tampered with. It is important to address the possibility of predatory lending practices that target weaker payees. As a result, this chapter has created a security protocol based on the idea of digital wallets with self-sovereign identity (SSI) and decentralized finance (DeFi) for cryptocurrencies, which are secured by the Xsalsa20 algorithm. It has satisfied specs and is further improved by the application of the Crow search algorithm (CSA), which ensures quick and effective search results. We were able to verify several security features, including data authenticity and complete forward secrecy, by analyzing the suggested system.