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Blockchain for Secure Transactions in UPI Payments
The Unified Payments Interface (UPI) has transformed digital payment landscapes across India, enabling instantaneous peer-to-peer transactions with over 10 billion monthly transactions by 2023. However, centralized architectures inherent in current UPI systems present vulnerabilities including single-point failures, data manipulation risks, and inadequate fraud detection mechanisms. This research proposes an innovative integration of blockchain technology with UPI infrastructure to establish a decentralized, tamper-resistant transaction validation framework. The implemented system employs cryptographic hashing algorithms (SHA-256), digital signature mechanisms (ECDSA/RSA), and consensus protocols (Proof of Authority) to ensure transaction integrity, authenticity, and non-repudiation. A prototype developed using Python, Web3.js, MongoDB, and Ganache demonstrates enhanced security features including immutable ledger maintenance, real-time fraud detection, and comprehensive audit trails. Experimental results indicate successful transaction validation with minimal latency overhead while providing superior security guarantees compared to conventional centralized systems. The proposed architecture maintains UPI's characteristic transaction speed while introducing blockchain's trust mechanisms, thereby addressing critical security challenges in contemporary digital payment ecosystems.
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