NUTXO: A potent transaction tracing system using centralized block chain model

Abstract

Currency refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins. Currency is a very important asset to a country. The existing system has some major flaws when it comes to tracking the amount being transferred between several parties. Such details can easily be tampered by a corrupt party in order to gain an unfair advantage. In our proposed system, each serialized currency note can be tracked end-to-end by introducing blockchain. Changes are updated by a trusted centralized party such as the RBI that issues the notes in India. Using blockchain improves privacy as the hash values are updated only by the aforementioned party and any other changes can easily be tracked down to the source which is the underlying principle of a blockchain.