Implementation of Blockchain for Secure Bank Transactions

Abstract

Blockchain is a distributed database or a decentralized ledger which is most commonly used to exchange digital currency and perform transactions securely. Every participant of the network has access to the ledger which will be updated by every new transaction. The Blockchain ledger is a collection of all transactions executed in the past. The Blockchain ledger is a continuously growing tamper-proof data structure containing blocks that hold batches of individual transactions. The completed blocks are added in chronological order. Blockchain via Bitcoin has had a massive impact on the world in the past decade and it's safe to say that this will continue, especially with many people working tirelessly to remove the various limitations that are prohibiting blockchains from becoming mainstream. One such limitation is the high processing and electrical costs that come from the Proof-of-Work consensus protocol. In this paper, we propose an alternative proof-by-approval protocol which is a more advanced form of the proof-of-reputation protocol, that offers better security and is a more decentralized approach than the former at the cost of being less performant and harder to setup