Base paper Title: Bank Record Storage Using Blockchain

Abstract

Financial service providers find blockchain technology useful to enhance authenticity,

security, and risk management. Several institutions are adopting blockchain in trade and
finance systems to build smart contracts between participants, improve efficiency and
transparency, and open up newer revenue opportunities. Blockchain’s unique recording
capabilities make the existing clearing and settlement process redundant. Banks and other
financial entities are adopting blockchain enabled IDs to identify people. Better results come
from organisations’ capacity to foresee emerging trends in financial blockchain applications
and develop blockchain functionality. The transfer of asset ownership and addressing the
maintenance of a precise financial ledger. Measurement, communication, and analysis of
financial information are three significant areas to be focussed on by accounting
professionals. Blockchain clarifies asset ownership and the existence of obligations for
accountants, and it has the potential to improve productivity. This paper identifies and studies
relevant articles related to blockchain for finance. This paper focuses on Blockchain
technology and its importance for financial services. Further takes up various tools,
strategies, and featured services in Blockchain-based financial services. Finally, the paper
identifies and evaluates the significant applications of Blockchain technology in financial
services. Credit reports significantly impact the financial lives of customers. Recent data
breaches demonstrate the superior security of blockchain-based credit reporting over
conventional server-based reporting. Blockchainbased systems enable the faster, more cost-
effective, and more customised issuance of digital securities. With its adoption, the market
for investors can be expanded, costs for issuers can be reduced, and counterparty risk can be
reduced due to the ability to customise digital financial instruments to the demands of
investors. It uses mutualised standards, protocols, and shared procedures to give network
users a single common source of truth. Participants in the business network can now more
easily collaborate, manage data, and agree with this technology’s application.

Existing System

Users can update the blockchain network using a decentralised approach provided by
blockchain. Blockchain networks are free from financial institutions' intervention.
Blockchains can be used to store information, and the distributed ledger technology makes it
easier to share information. It can be used to have direct communication with network users.
Blockchain offers a safe network for conducting transactions. Blockchain technology appeals
to a variety of enterprises due to its strong security system. As a result of the independence of
each company's accounting operations, data reconciliation takes time and resources. By
enabling the real-time recording of transactional, contractual, and other information in a
shared ledger, blockchain technology can solve this problem. It alludes to the possibility of
improving the customer experience and making data transfers and identities more secure.
Wire transfers, which require time, and money, however, cannot be combined. Blockchain
technology payments eliminate these issues and boost client confidence. Realtime cash
transfers between financial institutions are made feasible by technology, which reduces
friction and speeds up settlement. This technology is excellent for tracking transactions and
has the potential for automation. Smart contracts can be used by financial service providers to
track customer payments and seller deliveries This article examines blockchain technology,
including its benefits, uses in banking, and tools and features.

Drawback in Existing System

 Scalability Issues: Blockchain networks, especially public ones, may face scalability
challenges when it comes to processing a large number of transactions. This can result
in slower transaction times and increased fees.
 Regulatory Challenges: The regulatory environment for blockchain and
cryptocurrencies is still evolving. Implementing blockchain for bank record storage
may face legal and compliance challenges, particularly in terms of data protection,
privacy, and adherence to financial regulations.
 Immutable Nature: The immutability of blockchain, while providing security, can
also be a drawback. Once data is added to the blockchain, it cannot be altered or
deleted. In the context of banking records, this lack of flexibility can be problematic
in cases of errors or data corrections.
 Lack of Standardization: The lack of standardized protocols and frameworks for
blockchain can result in interoperability issues. Different blockchains may use
different standards, making it challenging to create universally accepted solutions.
Proposed System

 Immutable Record Keeping: Blockchain ensures immutability, meaning once data is

added to the chain, it cannot be altered or deleted. This feature provides a secure and
tamper-proof record of all bank transactions and customer data.
 Efficient and Faster Transactions: Blockchain transactions occur in real-time and
can significantly reduce the time it takes to settle transactions compared to traditional
banking systems. This efficiency is particularly beneficial for cross-border
transactions.
 Data Privacy and Ownership: Blockchain allows individuals to have greater control
over their personal information. Users can grant and revoke access to their financial
data as needed, enhancing privacy and putting data ownership back into the hands of
customers.
 Resilience to System Failures: The decentralized nature of blockchain makes it
resistant to system failures or attacks. Even if some nodes go offline or are
compromised, the system can continue to function, ensuring the availability and
integrity of financial records.

Algorithm

o Proof of Work (PoW): Initially designed for cryptocurrencies, PoW is employed to

achieve consensus in blockchain networks. Nodes (or miners) solve complex
mathematical puzzles to validate transactions and add new blocks to the chain. While
computationally intensive, PoW provides a high level of security against malicious
actors.
o Merkle Trees: Utilized for efficient and secure verification of data integrity within a
block. Merkle trees organize transaction data into a hierarchical structure, and the hash
of each transaction is included in the tree. This allows for quick verification of the
integrity of a specific transaction or a set of transactions.
o Ethereum Virtual Machine (EVM): Ethereum, a blockchain platform, introduced the
concept of smart contracts, self-executing contracts with the terms of the agreement
directly written into code. EVM is the runtime environment for executing these smart
contracts on the Ethereum blockchain. Smart contracts automate various processes,
 such as fund transfers and data updates, enhancing transparency and reducing the need
for intermediaries.

Advantages

 Immutability and Tamper Resistance: Once data is recorded on the blockchain, it

becomes immutable and resistant to tampering. This ensures the integrity of bank
records, making it nearly impossible for unauthorized parties to alter transaction
details.
 Enhanced Security through Cryptography: Cryptographic techniques, such as
public-key cryptography, secure transactions and data on the blockchain. The use of
hash functions ensures data integrity, and digital signatures provide authentication,
making the system highly secure.
 Faster and Efficient Transactions: Blockchain enables near real-time settlement of
transactions, especially in comparison to traditional banking systems that may involve
delays due to intermediary processes and clearinghouses.
 Improved Customer Experience: Faster transactions, increased transparency, and
enhanced security contribute to an improved overall customer experience. Customers
can have more confidence in the integrity of their financial records.

Software Specification

 Processor : I3 core processor

 Ram : 4 GB
 Hard disk : 500 GB

Software Specification

 Operating System : Windows 10 /11

 Frond End : Python
 Back End : Mysql Server
 IDE Tools : PyCcharm