E-commerce is the more reputed way to do transactions nowadays and all the online
transaction use multicurrency. At present, e-commerce and online trade is the most
popular way to buy or sell anything and this domain has become a very broad and wide
area. These e-commerce and online trading applications are using a different level of
security mechanism and those mechanisms provide some certain level of security. These
security mechanisms basically depend on third-party authentications using symmetric or
asymmetric key cryptography approaches.When using any third party or middle
hand to authenticate any transaction still there can be a lot of vulnerabilities since security
control and sensitive data been shared with an external party. As a solution to this
situation block-chain concept was introduced and using this concept, third-party
dependencies of an application can be eliminated.
Most of the existing online trading application and payment systems have been integrated
with the actual bank and all these bank transactions are always use bank profiles to do
any transaction. But using cryptocurrency like bitcoin no need to have a bank profile and
it is very fast compared to others. Currently, all the other fiat-currencies has a tendency to
inflate and it can be very time dependent but it’s very important to find out
noninflationary currency that will be helpful for the stability of the economy. This
solution mainly based on the bitcoin which is well-organized crypto-currency and peer-
to-peer payment method and it has more value-added features than existing wallet
services and peer-to-peer payment applications. This application basically focuses on the
high-security wallet mechanism, wallet restore functionality in any crash or vulnerability
situation and also user-friendly application to the user with seamless transaction delay
time. And also this application is open source user creation and any user can create a
wallet with basic validations and can use for any bitcoin transfer functionalities. Using
this application user can always check his balances and transaction history at any time
and also this APIs can be integrated with any front-end client since back-end service have
been implemented as micro-services endpoints. As an end product, this will be an open
source high secure bitcoin wallet application with integration capability with any third
party services like a bank, card applications.
Inhaltsverzeichnis (Table of Contents)
- Chapter 1
- 1.1 Introduction
- 1.1.1 Blockchain Basics
- 1.1.2 Hash Function
- 1.1.3 Cryptographic Hash Function
- 1.1.4 Hash Chain
- 1.1.5 Linked List and Block Chain Structure
- 1.1.6 Public Key Cryptography
- 1.1.7 Public Cryptography in Bitcoin
- 1.1.8 How to Secure Hash Chain with Public Key Cryptography
- 1.1.9 What is Block-Chain
- 1.2 Introduction to Bitcoin
- 1.2.1 Introduction to Bitcoin
- 1.2.2 Current Use Case of Bitcoin
- 1.2.3 How Bitcoin works
- 1.2.4 How Block Chain use in Bitcoin
- 1.3 Bitcoin Mining
- 1.3.1 Bitcoin Mining
- 1.3.2 Proof of Work - (POW)
- 1.3.3 Proof of Stake - (POS)
- 1.4 Bitcoin Address
- 1.4.1 Bitcoin Address
- 1.4.2 Bitcoin Address Creating Process
- Chapter 2
- 2.1 Problems Definition (Existing application and wallet security mechanism gaps)
- 2.2 Aim and objectives
- 2.3 Limitations
- 2.4 Assumptions
- Chapter 3
- 3.1 BACKGROUND – LITERATURE REVIEW
- 3.1.1 Theoretical background on Blockchain ecosystem and Secure Wallet
- 3.1.2 Summary of existing Bitcoin wallet security and application features
- Chapter 4
- 4.1 Methodology
- 4.2 Secure Wallet Implementation
- 4.2.1 Single-Sign Transaction
- 4.2.2 Multi-Sign Transaction
- 4.2.3 Simplified Payment Verification (.spv)
- 4.2.4 Wallet Encryption
- 4.2.5 Wallet Backup
- 4.2.6 Restore Wallet
- 4.3 Deployment and Hosting
- 4.3 Technology Stack
- Chapter 5
- 5.1 Evaluation & Results
- 5.1.1 Evaluation Plan
- 5.1.2 User Experience Test Scenarios
- 5.1.3 Bitcoin Transfer Testing
- 5.1.4 Software Wallet File Location Security
- 5.1.5 Double Spending Attack
- 5.1.6 Transaction Confirmation Time
- 5.1.7 Hypothetical Testing on Multi-Sign Transactions
- Chapter 6
- 6.1 Discussion
- 6.2 Challenges
- 6.3 Future Work
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis aims to design and implement a secure, user-friendly peer-to-peer payment system using blockchain technology and Bitcoin. The focus is on enhancing security features, including multi-signature transactions and robust wallet management, while maintaining ease of use. * Enhancing the security of existing peer-to-peer payment systems. * Implementing a multi-signature transaction system for increased security. * Developing a user-friendly interface for seamless transactions. * Utilizing blockchain technology to eliminate third-party dependencies. * Exploring the application of Bitcoin as a non-inflationary currency.Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1: This chapter provides a foundational overview of blockchain technology, focusing on its core components such as hash functions, cryptographic hash functions, hash chains, and public key cryptography. It explains how these concepts underpin Bitcoin's functionality, detailing Bitcoin's architecture, working mechanisms, and its use of blockchain for secure transactions. The chapter also explores Bitcoin mining, contrasting Proof-of-Work and Proof-of-Stake consensus mechanisms, and describes the creation and use of Bitcoin addresses. The significance lies in establishing a solid understanding of the underlying technologies before delving into the proposed system. Chapter 2: This chapter clearly defines the problems associated with existing peer-to-peer payment systems and wallet security mechanisms, highlighting vulnerabilities and limitations. It then articulates the thesis's aims and objectives, outlining the goals of building a more secure and user-friendly system. Finally, it details the limitations and assumptions that guided the design and implementation of the proposed system. This chapter's importance lies in establishing a clear problem statement and setting the stage for the proposed solutions. Chapter 3: This chapter presents a comprehensive literature review, examining the theoretical background of blockchain ecosystems and secure wallets. It analyzes existing Bitcoin wallet security features and applications, providing context for the thesis's contribution to the field. This detailed review helps establish the context of the current state-of-the-art in the area, allowing for a better understanding of the thesis's position in this research area. Chapter 4: This chapter outlines the methodology employed in developing the secure wallet implementation. It details the implementation of key features like single-sign and multi-sign transactions, Simplified Payment Verification (SPV), wallet encryption, backup, and restoration. The description of the technology stack and deployment strategy completes the picture of the practical development approach taken. The importance of this chapter is to showcase the practical steps taken to reach the objectives outlined previously. Chapter 5: This chapter presents a thorough evaluation of the implemented system, encompassing various testing scenarios. It details the user experience testing, Bitcoin transfer testing, security assessments (including double-spending attack simulation), and analysis of transaction confirmation times. Hypothetical testing of multi-sign transactions is also included. The chapter provides empirical evidence of the system's effectiveness and performance, demonstrating its practical viability.Schlüsselwörter (Keywords)
Blockchain, Peer-to-peer, Bitcoin, Cryptocurrency, Wallet, Private Key, Public Key, Hash chain, Double Spending, 51% Attack, Single-Signing, Multi-Sign, Distributed Ledger Technology, Smart Contract, Simplified Payment Verification, Wallet Encryption
Frequently Asked Questions: Secure Peer-to-Peer Payment System using Blockchain Technology and Bitcoin
What is the main topic of this document?
This document provides a comprehensive preview of a thesis focusing on the design and implementation of a secure and user-friendly peer-to-peer payment system utilizing blockchain technology and Bitcoin. It details the objectives, methodology, results, and future work of the project.
What are the key objectives of the thesis?
The thesis aims to enhance the security of existing peer-to-peer payment systems, implement a multi-signature transaction system, develop a user-friendly interface, utilize blockchain technology to eliminate third-party dependencies, and explore Bitcoin's application as a non-inflationary currency.
What are the key themes explored in the thesis?
The key themes include blockchain security, Bitcoin functionality, multi-signature transactions, user experience design, wallet security (including encryption and backup), and the implementation and testing of a secure wallet.
What technologies are discussed in the thesis?
The thesis covers blockchain technology, Bitcoin, cryptographic hash functions, public key cryptography, Proof-of-Work (PoW) and Proof-of-Stake (PoS) consensus mechanisms, Simplified Payment Verification (SPV), and wallet encryption techniques. Specific technology used for implementation is detailed in Chapter 4.
What are the main chapters and their focus?
Chapter 1: Introduces blockchain technology and Bitcoin fundamentals. Chapter 2: Defines the problem and objectives. Chapter 3: Reviews existing literature on blockchain and secure wallets. Chapter 4: Details the methodology and implementation of the secure wallet. Chapter 5: Presents the evaluation and results of testing. Chapter 6: Discusses challenges, limitations, and future work.
What security features are implemented in the secure wallet?
The secure wallet implementation includes single-sign and multi-sign transactions, Simplified Payment Verification (SPV), wallet encryption, backup, and restoration capabilities.
What types of testing were conducted to evaluate the secure wallet?
Testing included user experience testing, Bitcoin transfer testing, security assessments (including double-spending attack simulation), and analysis of transaction confirmation times. Hypothetical testing of multi-sign transactions was also performed.
What are the challenges and limitations addressed in the thesis?
Chapter 6 discusses the challenges faced during the implementation and testing, along with the limitations of the developed system. Specific details are found within the chapter.
What is the significance of the thesis?
The thesis contributes to the field by proposing a more secure and user-friendly peer-to-peer payment system. It provides a practical implementation and evaluation, addressing existing vulnerabilities and limitations in current systems.
What are the keywords associated with this thesis?
Blockchain, Peer-to-peer, Bitcoin, Cryptocurrency, Wallet, Private Key, Public Key, Hash chain, Double Spending, 51% Attack, Single-Signing, Multi-Sign, Distributed Ledger Technology, Smart Contract, Simplified Payment Verification, Wallet Encryption.
- Quote paper
- Eranda Gunasena (Author), 2018, Peer-to-peer payment system and crypto-currency using blockchain technology with a secure wallet and multi-signature transactions, Munich, GRIN Verlag, https://www.grin.com/document/491201
