Problems of centralized financial systems and their solution with the help of Blockchain technology

• Дата: 2022
• Автори: Охріменко, Т. О., Макаренко, О. І., Бредніков, А. В., Толбатов, А. В., Бондаренко, І. О.
• Формат: Стаття
• Мова: Ukrainian
• Опубліковано: Інститут проблем реєстрації інформації НАН України 2022
• Теми: decentralized finance; Blockchain; distributed ledger technology; personal data security; DeFi; децентралізовані фінанси; технологія розподіленого реєстру Blockchain; безпека персональних даних
• Онлайн доступ: http://drsp.ipri.kiev.ua/article/view/263077
• Назва журналу: Data Recording, Storage & Processing

Internet application services based on a centralized architecture (including financial services) constantly collect personal information about users for various reasons for business development, but not enough attention is paid to protecting user privacy, which should be the basis, even if it cannot stimulate revenue growth. However, once user information is leaked through such programs, there is a risk that hundreds of millions of users will be compromised. Leaks, if misused by hackers, lead to unpredictable disasters for users, such as money or personal fraud. Today, society is in dire need of privacy and technology-based privacy measures, as confidentiality is a fundamental human right. Currently, the centralized financial system has significant shortcomings. Personal data is concentrated in centralized databases and is subject to sufficient risk of being compromised. There is a problem protecting users' personal data. In addition, there is the problem of anonymity of the parties to the transaction. Also a problem of the centralized financial world is the so-called “Matthew effect”. The aim of the work is to develop an improved solution model based on existing Blockchain technology protocols to solve the problems of the centralized financial system, namely the problems of personal data security and anonymity. The Blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format. This paper provides statistics on personal data leaks. The Blockchain solution based on the Monero protocol was considered, which allows solve the outlined problems. To ensure anonymity and high performance, Ring Signature technology, Stealth Address technology, and Ring confidential transactions (RingCTs) technology were considered. In the future, based on these results, the structure of an anonymous, highly productive and extensible Blockchain-decentralized financial solution deployed within the Blockchain system should be developed and studied by authors.