Enhancing Security and Confidentiality in Decentralized Payment System Based on Blockchain Technology

Abstract

The advent of blockchain technology (BC), has revolutionized the financial landscape with its decentralized, immutable, and verifiable characteristics. Blockchain technology can be deployed in many applications, however the Decentralized Payment System (DPS) can be considered as the most widely used application among all others.  The public nature of early decentralized payment systems (e.g. bitcoin) has led to privacy challenges, making them susceptible to cybercriminal activities such as ransomware attacks and illegal financial transactions. This research investigates various decentralized payment systems adopted in blockchain technology and outlines the security requirements necessary to safeguard user transactions. The objectives of this study include examining payment transactions in decentralized systems, identifying potential threats, proposing improved and efficient security solutions, and assessing personal data sharing confidentiality.