Towards a distributed token based payment system using blockchain technology

Abstract

This paper presents a distributed payment system based on payment tokens using Blockchain technology; these payment tokens protect the consumer from identity theft by unauthorized usage of his payment card details (PAN,CVV), due to mismanagements from other parties of the payment system. Furthermore, a private Blockchain consortium consolidates the security and privacy of the proposed payment system; this consortium consists of a private Blockchain called Bank Authority that acts as the interoperability domain, in addition to two other private Blockchains, each serves as the acquirer Bank and the issuer Bank, respectively, the security of this payment system is reinforced by introducing special nodes that verify and validate transactions, in order to detect and block fraud attempts. Moreover, to keep the payment system confidentiality and protect the economic interests of all the Banks in the system, only the transaction hash is recorded in the consortium's Blockchain and only the Banks involved in a transaction will have access to its details.