Securing User Authentication and Data with Advanced Cryptographic Techniques and Blockchain Mechanisms in a Fintech Application

Abstract

This research presents the design and implementation of a novel E-banking application based on blockchain technology and enhanced cryptographic practices to enable secure, transparent, and efficient financial transactions. The system deploys an integrated Python-based blockchain for distributed storage of user data, with SHA-256 hashing and Merkle root trees employed to secure transaction integrity and immutability. The sensitive user data which is also stored in local databases is also encrypted with Advanced Encryption Standard (AES), and user login security is reinforced with two-factor authentication from Google Authenticator. The application supports main functions such as user enrollment, loading cryptocurrency, peer-to-peer transactions, and monitoring transaction history, all backed by cryptographic protection such as salted hash password protection and PIN verification. A Solidity smart contract then extends the functionality of the system on the Ethereum blockchain, to enable secure deposit and transfer procedures with real-time balance updating. This integration employs local cryptographic protection with the benefits of blockchain technology’s distributed ledger, to deliver a robust architecture for contemporary electronic banking. The results demonstrate the scalability and tamperproof platform, addressing the solution to privacy and trust in E-banking, and it promises to pave the way for decentralized financial systems.