Secure Architecture for Distributed Micropayment System

Abstract

Anonymous payments become increasingly vital because consumers like to protect their privacy as much as possible when they perform transactions. This research proposes a secure anonymity and distributed micropayment protocol which enables consumers to perform transactions with a third party in an anonymous way. A bank which acts as the issuing authority, enable consumer to withdraw desired currency and it guarantees the withdrew amount is valid for the online anonymous com- munity. Online anonymous community is the entity which is responsible for verifying the transactions. The main reason for introducing the online anonymous community is that bank does not involve in verifying anonymous transactions. Therefore there should exist some third party to perform this task. However, delegating payment veri cation for a single third party may introduce trustworthiness issues. Therefore online anonymous community has been introduced to delegate payment veri cation to several nodes and it increases the trustworthiness of the payment veri cation. Every individual veri cation node in the online anonymous community participate in verifying in a distributed manner. This is where distributed nature comes in to the protocol. Most of the distributed payment veri cation systems such as Bitcoin Minting in the current market are very complex and they are resource hunger. A less complex and e ective distributed payment veri cation system has been introduced as a result of this research. In addition, this research enables consumer to perform o ine transactions for o ine payees. Once the o ine payee comes online, it enables the consumer to receive all the payments which are destined for payee wallet.