Abstract: Banking institutions have essentially become the only source of confidence for online commerce in order to carry out electronic payments. With a peer-to-peer electronic cash system, payments might be performed online directly between parties without going through a banking institution. But, if a trustworthy third party is still required to prevent double spending, the main benefits of digital signatures are lost. So, using block chain technology to construct hash functions, we may implement a Bit Coin-based financial system in this project. Bit coin is a form of digital currency that is not supported by the central bank or government of any nation. The building blocks of safe data are these bit coins. In order to safely validate each transaction, it is necessary to send this data from one person to another while also verifying the transaction with money. The P2P network tracks and validates the exchange of digital currency between users. Bit coin is more secure than other currencies in terms of cryptographic implementation, and it is difficult to carry out fraudulent transactions. In a Bit coin transaction, the block chain will connect all users connected to the network, and each time a transaction is entered, the network will broadcast it to other users after it has been validated. The network will also have a copy of every transaction. The network will group transaction data into blocks and broadcast them throughout the network rather than preserving any transactions in the block chain. Every single block in this chain links to the one before it, and the genesis block is the first block in the chain. Since peer-to-peer networks and a consensus mechanism are used in block chain systems, there is no chance of data alteration.
Keywords: Blockchain Technology, Transparency, Reshaping the future of Banking, Decentralization.
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DOI:
10.17148/IJARCCE.2023.12407
