A Low-Cost Cross-Border Payment System Based on Auditable Cryptocurrency With Consortium Blockchain: Joint Digital Currency

【Author】 Islam, Md. Mainul; Islam, Md. Kamrul; Shahjalal, Md.; Chowdhury, Mostafa Zaman; Jang, Yeong Min

【Source】IEEE TRANSACTIONS ON SERVICES COMPUTING

【影响因子】11.019

【Abstract】Due to the involvement of a large number of intermediaries across different time zones in the correspondent banking process, existing interbank payment systems cannot provide cost-effective cross-border transactions. They also suffer from lack of transparency and long transaction delays. These issues can be solved by designing a cryptocurrency in an auditable manner using a permissioned blockchain where a group of authorities can govern the network. In this article, we propose a low-cost, seamless cross-border payment system based on an auditable cryptocurrency that enables unspent transaction output-based transactions in a consortium blockchain network. To manage the blockchain, participating countries execute the energy-efficient proof of authority consensus algorithm with equal rights. Unlike conventional cryptocurrencies, dynamic decentralized identifiers (DIDs) are used as transacting addresses so that self-manageable authentication can be performed on-chain without any interaction with a trusted third party. The identity of transacting parties is known to respective DID issuers only. This approach enables peer-to-peer transactions while protecting user privacy and ensuring transparency without jeopardizing auditability. For user convenience, multi-party computation and multi-signature protocols are also provided. The system was implemented in Python, and the transaction mechanism was tested. This paper can help with ongoing research on blockchain-based cross-border payment solutions worldwide.

【Keywords】Blockchains; Privacy; Protocols; Resilience; Authentication; Servers; Consensus algorithm; Auditable cryptocurrency; consortium blockchain; Index Terms; cross-border payment; decentralized identifier; joint digital currency; multi-party computation; multi-signature; proof of authority; unspent transaction output

【发表时间】2023 MAY-JUN

【收录时间】2023-07-29

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