Enhancing Financial Transactions using Blockchain Technology

Abstract

Blockchain technology is evolving in each area. Cryptocurrency is one of the prominent fields in which blockchain technology is used extensively. In conventional bank systems using fiat currencies such as Indian rupee, US dollar etc , there is a centralized authority like a bank which do the processing of transactions. Blockchain with its properties like decentralization, distributed, and immutability stands the way out from other transaction processing mechanisms. Moreover, with decentralization property in blockchain-based transactions makes that there is a peer-to-peer network in which one peer can able to transact with others in the network without relying on third party for validating the transactions. Instead, there are a group of miners who does the work of validation with the use of consensus protocols. The paper shows the use of blockchain technology in financial transactions with the help of tokens. The paper shows the creation of a simulated blockchain network and the transaction processing mechanism with the help of the creation of nodes. This paper shows the implementation of blockchain technology and it also shows the limitations and misconceptions involved in blockchain technology.