Digital currency banking using block chain technology

Abstract

Banks are now the almost sole source of confidence for internet commerce when it comes to processing electronic payments. With a peer-to-peer electronic currency, payments can be conducted online directly between parties without going via a banking organisation. While signatures do contribute in some ways, the main benefits are lost if a trustworthy third party is still required to prevent double spending. So in this project we can implement Bit Coin based banking system can be implemented leveraging the technologies of block chains to create hash functions. Bit coin is a crypto currency, which is not supported by the government or central bank of any nation. It can be traded for goods or services with vendors who the use of bit coins payment. These bit coins are the blocks of secure data. It takes a lot of CPU resources to securely verify each individual transaction as the data is passed from one person to another while also spending money on the transaction. The P2P network monitors and verifies the moving of bit coins 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 every user on the network, and each time a transaction is entered, the network will broadcast it to all 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 block in this chain will link to the one before it, which is known as the genesis block. Peer-to-peer networks and a consensus mechanism are used in block chain systems, eliminating the potential of data alteration.