BLS: Bank Loan Sanction Using Blockchain Authenticity, Transparency and Reliability

Abstract

Blockchain technology is a decentralized ledger system that records immutable data. Nowadays blockchain is used to record, validate and secure peer-to-peer transactions. This paper focuses on how to use a blockchain network to make a partially decentralized system that we can use in banking agencies to sanction the loan. The consortium blockchain is maintained by pre-sets nodes that can improve transparency and security which is essential for the financial institution. This paper is a theoretical paper where we propose a model to validate loans and safely store the loans information in a blockchain network. The proposed model also uses the Hyperledger Fabric blockchain to implement the smart contracts method called ‘chaincodes’. The constructed system will consist of a blockchain network that can improve the reliability, efficiency, transparency, and safety of processing loans by the banking industry.