A Proposed Framework for Financial Institutions Using Blockchain Tecnology

Blockchain technology plays a pivotal role in the banking industry, being recognized as one of the most crucial sectors. With the financial market expanding and the demand for banking services on the rise, the need for a robust banking system capable of offering top-notch services to clients is paramount. Regrettably, the current banking system in Egypt falls short of meeting these requirements. However, there is hope on the horizon, as blockchain technology has garnered widespread interest in the global banking community for its potential to mitigate fraud and other threats to banking operations. This study offers a concise overview of various blockchain architectures and trading systems, delving into their types and the popular platforms currently being utilized worldwide., such as Automated Clearing House (ACH)

Logging mechanism for cross-organizational collaborations using Hyperledger Fabric

Organizations nowadays are largely computerized, with a mixture of internal and external services providing them with on-demand functionality. In some situations (e.g. emergency situations), cross-organizational collaboration is needed, providing external users access to internal services. Trust between partners in such a collaboration can however be an issue. Although (federated) access control policies may be in place, it is unclear which data was requested and delivered after a collaboration has finished. This may lead to disputes between participating organizations. The open-source permissioned blockchain Hyperledger Fabric is utilized to create a logging mechanism for the actions performed by the participants in such a collaboration. This paper presents the architecture needed for such a logging mechanism and provides details on its operation. A prototype was designed in order to evaluate the performance of an asynchronous logging approach. Measurements show that the proposed logging mechanism enables organizations to create a log of service interactions with limited delay imposed on the data exchange process

Distributed Ledger Technology (DLT) Applications in Payment, Clearing, and Settlement Systems:A Study of Blockchain-Based Payment Barriers and Potential Solutions, and DLT Application in Central Bank Payment System Functions

Payment, clearing, and settlement systems are essential components of the financial markets and exert considerable influence on the overall economy. While there have been considerable technological advancements in payment systems, the conventional systems still depend on centralized architecture, with inherent limitations and risks. The emergence of Distributed ledger technology (DLT) is being regarded as a potential solution to transform payment and settlement processes and address certain challenges posed by the centralized architecture of traditional payment systems (Bank for International Settlements, 2017). While proof-of-concept projects have demonstrated the technical feasibility of DLT, significant barriers still hinder its adoption and implementation. The overarching objective of this thesis is to contribute to the developing area of DLT application in payment, clearing and settlement systems, which is still in its initial stages of applications development and lacks a substantial body of scholarly literature and empirical research. This is achieved by identifying the socio-technical barriers to adoption and diffusion of blockchain-based payment systems and the solutions proposed to address them. Furthermore, the thesis examines and classifies various applications of DLT in central bank payment system functions, offering valuable insights into the motivations, DLT platforms used, and consensus algorithms for applicable use cases. To achieve these objectives, the methodology employed involved a systematic literature review (SLR) of academic literature on blockchain-based payment systems. Furthermore, we utilized a thematic analysis approach to examine data collected from various sources regarding the use of DLT applications in central bank payment system functions, such as central bank white papers, industry reports, and policy documents. The study's findings on blockchain-based payment systems barriers and proposed solutions; challenge the prevailing emphasis on technological and regulatory barriers in the literature and industry discourse regarding the adoption and implementation of blockchain-based payment systems. It highlights the importance of considering the broader socio-technical context and identifying barriers across all five dimensions of the social technical framework, including technological, infrastructural, user practices/market, regulatory, and cultural dimensions. Furthermore, the research identified seven DLT applications in central bank payment system functions. These are grouped into three overarching themes: central banks' operational responsibilities in payment and settlement systems, issuance of central bank digital money, and regulatory oversight/supervisory functions, along with other ancillary functions. Each of these applications has unique motivations or value proposition, which is the underlying reason for utilizing in that particular use case