BLOCKCHAIN-BASED FINANCIAL TRANSACTION MONITORING SYSTEM (SMART CONTRACTS, DECENTRALIZED DATABASE, AND AUDIT TRAILS)
DOI:
https://doi.org/10.5281/zenodo.20689464Keywords:
blockchain, smart contracts, decentralized ledger, audit trails, financial transactions, fraud prevention, cryptography, Ethereum, Hyperledger Fabric, digital auditing.Abstract
Transaction monitoring and efficient audit management have become increasingly important
in modern financial systems. Traditional centralized databases and auditing methods often face challenges
related to security vulnerabilities, fraudulent activities, and data manipulation. A blockchain-based financial
transaction monitoring system integrates smart contracts, decentralized ledgers, and audit trails to automate
financial operations, enhance transparency, and reduce fraud risks. The proposed architecture is implemented
on Ethereum and Hyperledger Fabric platforms, enabling automated transaction validation and execution
through smart contracts. All transactions are stored in an immutable decentralized ledger, while audit trails
are generated and maintained automatically. Simulation results demonstrate a 40–60% reduction in fraudulent
activities and up to a 70% decrease in audit processing time compared with conventional approaches. The
application of cryptographic algorithms and Zero-Knowledge Proofs further strengthens data security and
privacy protection. The proposed solution contributes to the improvement of financial control and auditing
systems within the framework of the digital economy.
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