Smart Contract Based Electronic Cheque Settlement Protocol

Abstract

Blockchain and smart contract technologies can be used to build a significant impact on financial transactions. This research initiatives the potential of applying blockchain and smart contract technologies for the traditional cheque clearing method. The new protocol is designed based on electronic cheque concepts, blockchain, and smart contracts. As a result of this research, a new secure cheque settlement protocol is designed and implemented. It provides several rewarding features compared to the traditional cheque clearing methods. The new protocol reduces the cheque dishonoring rate and has the possibility of handling a dated cheque. Further, it can be implemented without any exceptional hardware such as heavy-duty scanners.