DIGITAL CURRENCY BASED BANKING SYSTEM USING BLOCK CHAIN TECHNOLOGY
Ajaykumar.. K, Dinesh.A.R , Sivaganesh.S, Dr.N.Murali
ComputerScience and Engineering
E.G.S.Pillay Engineering College,
Nagapattinam, India
Abstract—Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. So in this project we can implement Bit Coin based banking system can be implemented using Block chain technology to create hash functions. Bit coin is a crypto currency, which is not backed by any country's central bank or government. It can be traded for goods or services with vendors who accept bit coins as payment. These bit coins are the blocks of secure data. This data is transferred from one person to another and verifying the transaction, i.e., spending the money that requires high computing power to safely verify the individual transactions. The P2P network monitors and verifies the transfer of bit coins between users. As per to cryptographic implementation bit coin is more secure than other currencies and it is impossible to do fake transactions. In a Bit coin transaction, block chain will create an interconnection between all users connected to network and every time when entering a transaction to the network after validating it will broadcast to other users and also network will have a copy of every transaction. Instead of saving any transaction in the block chain, the network will bundle transaction information into a block and it will broadcast into the network. Each and every block link to the previous block this chain will trace to the first block which is called genesis block. Block chain systems work with peer-to-peer networks and also uses a consensus algorithm that’s why there is no possibility of data modification.
Index Terms— Financial sector, Bit-coin transaction, Block chain, P2P network, Crypto currency
