Mini Project Blockchain Based Google Drive Clone

1. INTRODUCTION

Today, banks are continuously exploring new ways to do transactions quicker for
enhanced customer services by assuring transparency to customers and regulators
while ensuring cost efficiency. Blockchain is an essential technology with
promising application scenarios in banking industry nowadays. It can transform
banking industry and make process more democratic, transparent secure and
efficient. Blockchain is a technology that combine several technologies like
distributed data storage, consensus mechanism, point-to-point transmission and
encryption algorithms. A Blockchain act as decentralized ledger that keeps track
of transactions between two parties effectively. Although these parties have
simultaneous access to update digital ledger constant and system virtually
impossible to hack. Blockchain will influence for end of money via bitcoin and
other cryptocurrencies in Banking industry. More than 90 central banks involved
in Blockchain globally and 80% of banks predicted to initiate Blockchain with
distributed ledger technology. So most of the banks on its way to establish
blockchain use cases to create huge revolution in banking sector by giving signals
of end of traditional banking. This paper outlined as follows. Section I gives an
introduction about how blockchain going to revolutionize the banking industry.
Section II explain Blockchain architecture, model of Blockchain, how Blockchain
works with consensus algorithm. Section III discusses performance and use cases
in banking industry. Section IV discuss how impact of blockchain on FinTech and
Cryptocurrency. Section V provides details about limitations and future
improvements of Blockchain System. Section VI provide a discussion on what are
the challenges we have to faced when Blockchain adopt in Sri Lanka and what are
the solutions to overcome that challenges. Section VII gives conclusion about this
article, Blockchain revolution in banking industry.

SSJCET, Asangaon 1 Department of Computer Engg.

Mini Project ChatBuddy-A Chatbot Application

2. AIM AND OBJECTIVE

Here are the potential aims and objectives of our project conveyed in detail with
below points:-
• To transform and modernize traditional banking systems by harnessing the
potential of blockchain technology to create a more efficient, secure, and
transparent financial ecosystem.
• Implement blockchain's robust cryptographic mechanisms to enhance data
security and protect against fraud, cyberattacks, and unauthorized access.
• Utilize the decentralized and immutable nature of blockchain to enhance
transparency in financial transactions, making them auditable and traceable.
• Streamline banking processes through automation, reducing the need for
intermediaries and the associated operational costs.
• Enable faster cross-border transactions and settlements, reducing the time it takes
for funds to be transferred between financial institutions.
• Use blockchain to improve Know Your Customer (KYC) and Anti-Money
Laundering (AML) processes by creating a shared, secure database of customer
information, reducing redundancy and fraud.
• Facilitate low-cost, real-time cross-border payments by eliminating correspondent
banks and intermediaries.
• Implement smart contracts to automate and self-execute contractual agreements,
such as loan disbursements, reducing the need for manual intervention.
• Minimize settlement risks and counterparty risks by using blockchain for real-
time settlement and clearing of financial transactions.
• Improve the overall customer experience by offering quicker, more secure, and
cost-effective financial services.
• Explore the tokenization of assets like real estate, stocks, and bonds on the
blockchain to make these assets more accessible and tradable.

SSJCET, Asangaon 2 Department of Computer Engg.

Mini Project ChatBuddy-A Chatbot Application

3. LITERATURE SURVEY

1. According to Fabian Schär decentralized finance is a blockchain-based financial

architecture that has exploded in popularity recently. The term refers to a stack
developed on public smart contract platforms, such as the Ethereum blockchain,
that is open, permissionless, and highly interoperable (see Buterin, 2013). It is a
more transparent and open version of the traditional financial services. A standard
function market maker (CFMM) is a smart contract liquidity pool that keeps (at
least) two crypto assets in reserve and enables anyone to deposit tokens of one type
and withdraw tokens of other type in his research paper Decentralized Finance: On
Blockchain- and Smart Contract- Based Financial Markets in 2021.

2. According to Jayanth Rama Varma only a few pilot applications of blockchains to

other aspects of finance have been seen even a decade after the debut of Bitcoin.
The blockchain is an append- only, decentralised, replicated, tamper-resistant
(immutable) ledger of transactions. Because blockchain is currently a developing
and hence immature technology, it's difficult to say how successful it would be
outside of its sole known application domain of cryptocurrencies. History shows
that it takes decades for substantially innovative technology to reach their full
potential. As a result, despite its spotty success thus far, it is very feasible that
blockchain will prove revolutionary in the years to come. What is certain is that
corporations should be looking at and understanding this technology because the
underlying concepts are powerful and likely to have an impact as said by him in his
research paper of Blockchain in finance published in 2019.

SSJCET, Asangaon 3 Department of Computer Engg.

Mini Project ChatBuddy-A Chatbot Application

4. EXISTING SYSTEM

In January 2022, blockchain technology was already being used in various ways within
the banking sector.
The use of blockchain in banking primarily aimed to address issues related to efficiency,
security, and transparency. Here are some existing systems in banking.
• Cross-Border Payments and Remittances: Many banks were exploring or
implementing blockchain solutions to make cross-border payments faster, cheaper, and
more efficient. Ripple's XRP, for example, was being used in some payment systems to
facilitate international money transfers.
• Trade Finance: Blockchain technology was being used to streamline trade finance
processes. Smart contracts were employed to automate and self-execute trade agreements,
reducing the time and cost of trade transactions.
• KYC and AML Compliance: Banks were using blockchain to improve Know
Your Customer (KYC) and Anti-Money Laundering (AML) processes. Blockchain
allowed for the secure sharing of customer information among different institutions,
reducing the need for customers to repeatedly provide the same information.
• Asset Tokenization: Some banks and financial institutions were exploring the
tokenization of assets like real estate, stocks, and bonds on the blockchain. This made it
easier for investors to buy and trade fractional ownership of traditionally illiquid as.
• Smart Contracts: Banks were leveraging smart contracts for various purposes,
such as automating loan disbursements, insurance claims processing, and other contractual
agreements. This reduced the need for manual intervention and increased efficiency.
• Interbank Transactions: Several consortiums of banks were collaborating to use
blockchain for interbank transactions. For example, JPMorgan launched its own
blockchain platform called Quorum to facilitate interbank transfers and other financial
activities.

SSJCET, Asangaon 4 Department of Computer Engg.

Mini Project ChatBuddy-A Chatbot Application

5. PROBLEM STATEMENT

Blockchain technology offers numerous benefits for the banking sector, but it also comes
with its set of challenges and problem statements.
Here are some of the key problem statements associated with blockchain in banking:
• Scalability Issues: One of the primary problems with blockchain in banking is
scalability. Public blockchains like Bitcoin and Ethereum can handle only a limited
number of transactions per second. For widespread adoption in banking, blockchain
systems must be able to scale to accommodate the high transaction volumes of the
financial industry.
• Interoperability: Different banks and financial institutions may use different
blockchain platforms, making interoperability a significant challenge. These platforms
need to communicate seamlessly to ensure the smooth transfer of assets and information.
• Regulatory Challenges: The banking industry is heavily regulated, and
blockchain introduces new regulatory challenges. Banks must navigate complex legal and
compliance issues when implementing blockchain technology, especially in areas like
Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance.
• Privacy Concerns: While blockchain provides transparency, there are also
concerns about privacy. Sensitive customer data and transaction details may be visible on
a public blockchain, potentially exposing customer information to unauthorized access.
• Data Security: While blockchain is known for its security, it's not immune to
cyberattacks. Banks must ensure the security of their blockchain networks and protect
against potential vulnerabilities.
• Integration with Legacy Systems: Banks often use legacy systems for their
operations. Integrating blockchain technology with these existing systems can be complex
and costly.

SSJCET, Asangaon 5 Department of Computer Engg.

Mini Project ChatBuddy-A Chatbot Application

6. PROPOSED SYSTEM
A proposed system for implementing blockchain in banking should address the specific
needs and objectives of the financial institution while leveraging the advantages of
blockchain technology.
Firstly, the user will login and the system will check the credentials. If the credentials are
correct, he will get access to the banking system. Else the user will be required to sign up
and then he can access the banking system by logging in. If it is a bank, it will be able to
add different transaction to business and individuals. The amount transferring is saved in
peer to peer connecting blocks. Changing one block will change the entire blocks in all
the computers. We have used hyper ledger fabric for framework. It is an open source
blockchain framework hosted by Linux foundation. We will use docker to run a chain of
commands on ubuntu to create new users.

Fig: 6.1 System Architecture

SSJCET, Asangaon 6 Department of Computer Engg.

Mini Project ChatBuddy-A Chatbot Application

7. DETAILS OF HARDWARE AND SOFTWARE

7.1 HARDWARE REQUIREMENTS

System : Pentium IV 2.4 GHz.

Hard Disk : 40 GB.
Floppy Drive : 1.44 Mb.
Monitor : 14’ Color Monitor.
Mouse : Optical Mouse.
Ram : 2 GB.
Keyboard : 101 Keyboard Keys.

7.2 SOFTWARE REQUIREMENTS

Operating system : Windows 7.

Coding Language : HTML,CSS, Javascript, Solidity
Software’s used : Sololearn , Hyperledger
Database : MYSQL/Local Storage

SSJCET, Asangaon 7 Department of Computer Engg.

Mini Project ChatBuddy-A Chatbot Application

8. CONCLUSION
Although understanding blockchains in the context of bitcoin is beneficial, you should
not assume that all blockchain ecosystems require bitcoin mechanisms such as proof of
labour, longest chain rule, and so on. Bitcoin is the first attempt to create a
decentralised, public ledger with no central authority or governance. There are a lot of
obstacles to overcome. Private distributed ledgers and blockchains, on the other hand,
are frequently used to solve different types of problems. Every solution, as always, has
tradeoffs and advantages and disadvantages, which you should consider for each use
case separately.

SSJCET, Asangaon 8 Department of Computer Engg.