De-Centralized Secure Transparent Systems to Manage Financial Transactions

Abstract

The projects run by the Sri Lankan Government has a tendency to overspend due to fraudulent transactions and abuse of power. This is a huge problem in Sri Lanka since this affects the finances of the country and hinders the development of the country as a whole. In worst case scenarios these projects completely fail resulting in a tremendous wastage of resources. With a very limited number of stakeholders having access to financial information on such projects makes it easier for this type of fraudulent activity. Even though there is a current system in place to audit transactions the current system is easy to tamper with. As a result stakeholders committing fraud has the ability to escape any consequences and repeat the actions in different projects. With blockchain technology transactions can be recorded in a way that is not permeable leaving no room for tempering and deleting information from financial records. With the use of digital signatures the identity of the person who did the transaction will not be an issue. The process of auditing will take place before the transaction is authorized minimizing the chances of fraudulent transactions. The blockchain by definition is a public ledger system therefore the transparency of all financial transactions are guaranteed. The researcher believes that integration of blockchain to manage financial transactions for projects run by the Sri Lankan Government will reduce corruption and fraud as well as make these projects cost efficient, improving their chances of success and help achieve developmental goals of the Sri Lankan Government. The proposed system will take the Sri Lankan legal frame work into consideration as well as the requirements of the auditing process for government projects. All transactions need to be approved by all relevant stakeholders ensuring that the proposed transaction will not exceed the amount required. More over the money will directly be transferred to the wallet of the stakeholder requiring the financial transaction avoiding intermediaries from cashing in. After the transaction is authenticated by all relevant stakeholders smart contracts in the blockchain will carry out the transaction automatically. Digital signatures will assure that the no stakeholder can deny receiving the money, authorizing a transaction or requesting a transaction.