© 2023 JETIR May 2023, Volume 10, Issue 5 www.jetir.

org (ISSN-2349-5162)

Block chain Based Transaction Processing using a

Flask
Ms. S. Rajyalaxmi #1, D. S. R. Murthy #2
1. Research Scholar, Department of Computer Science and Engineering, Anurag University,
Asst. Prof. in IT Dept, Vasavi College of Engineering, Hyderabad, Telangana, India.
2. Professor, Department of Computer Science and Engineering, Anurag University,
Hyderabad, Telangana, India.

Abstract: Blockchain is one of the most popular and important distributed and decentralized database. Due to the present technology
all the people are focusing on online transactions. The first implementation of blockchain technology was the cryptocurrency. Crypto
currencies allow people to store their money and make payments securely by using cryptographic techniques. So Blockchain provides
greater infrastructure for transaction processing and, it can store and move transaction efficiently and more securely compared other
traditional transactions. Over the network huge amount of data being processed for any transaction. During the transaction processing
Authentication, Confidentiality and integrity are the most critical services in almost all current network applications. As everyone aware of
that these services are managed by the centralized controller known as certificate-authority and are prone to attacks easily. So, providing a
security to transaction processing becomes a critical challenging task. In this paper, we provided a blockchain based transaction processing
using Flask to resolve the issues with centralization.

Keywords: Block chain, Pow, Flask, Transactions.

1. Introduction
A number of online business models have already entered our daily lives due to the rapid growth of big data and network
communication technology today [3]. More and more individuals are choosing to conduct business online due to its efficiency and
ease. Around 1.6 billion individuals purchase online each year on websites like eBay, Amazon, Taobao, and Jingdong, and in 2018,
there were 2.3 trillion US dollars’ worth of online transactions. Online purchasing is more practical for customers than buying in
physical stores.
A distributed, decentralised, and reliable database for P2P networks is the blockchain. The popularity of blockchain technology [2] is
largely due to its several advantages, including decentralisation, immutability, and peer-to-peer (P2P) transactions. All nodes in the
network must receive the same set of messages in the same sequence in order for there to be consensus among the dispersed nodes [2].
A general decentralised trust mechanism is introduced, with the ability to be included in any DApps using the same blockchain
platform [3].
The application layer serves as the blockchain's wallet and is often in charge of key management, signatures, transaction creation, and
direct user interactions. It is a specific type of software programme that runs on electronic devices [4]. Generally speaking, everything
with value may be recorded on a blockchain network to lower its security risks and save everyone involved money on security
monitoring [5]. In Bitcoin, the "states" are virtual monies known as "cryptocurrencies," and a transaction transfers money between two
sets of addresses. A list of the transactions each node intends to execute is broadcast [6].
Special nodes called miners collect transactions into blocks, check for their validity, and start a consensus protocol to append the
blocks onto the blockchain. Bitcoin uses Proof of Work (PoW) for consensus [7] and only a miner which has successfully solved a
computationally hard puzzle (finding the right nonce for the block header) can append to the blockchain.
Across the globe the financial services are still centralized and multi-layered. The financial data is stored in centralized manner, and it
must move through several intermediaries like a back office, a front office, etc. Here the data being depends on intermediaries and we
can observe the lack of transparency in the system. Even though a database supports maximum protection, still there is a chance of
data breaches and servers’ hacking. The lack of transparency in the system leads to security threats as nobody can know what is
happening until things go wrong or data gets breached. So the use of blockchain in financial services, both transparency and security
can be ensured simultaneously. Blockchain is based on the application of cryptography techniques. Cryptography comprises the core
of protecting sensitive data, transactions, services, and identities.

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Figure 1.1: Example of a blockchain containing n blocks.

Each subsequent block, as seen in Figure 1.1, has the hash of the one before it, a date, the transactional data, the nonce number for the
mining process, and other information necessary for the protocol to function. The terms "block" and "chain" are used in this context to
refer to digital data that is kept in a public database. It enables communication and resource exchange between the two parties over a
peer-to-peer network where decisions are made by the majority rather than a single party. Security is therefore a significant issue in
modern applications. In blockchain, data is kept in a type of ledger with each network participant and is saved at many nodes across
the network, along with a copy of each transaction and its accompanying hash. In a blockchain network, it is challenging for an
attacker to update data that has been stored in several places.
In comparison to centralized storage, decentralized storage offers greater cryptographic security. The majority of peer members
approve transactions. Therefore, the central authorizing authority is fully eliminated by blockchain technology. Because transactions
are decentralized, it is more difficult to hack them; transactions are automatically authorized using consensus procedures; and security
costs are reduced. Data in a block chain is quickly verified; security and privacy are maintained; and no changes are allowed without
majority approval. This paper focus on implementation of blockchain based transaction processing using a Flask. Rest of the paper is
organized as follows: Section 2 Provides a related work. Section 3 gives peer to peer network structure for transaction processing.
Section 4 gives the results of implementation. Section 5 Conclusion , Section 6 Future scope.

2.Related Work
In this part, we examine current research that implements safe and transparent transactions using blockchain technology. Blockchain
was first developed as a piece of technology to support the well-known cryptocurrency Bitcoin. Nakamoto originally put out the idea
for Bitcoin in 2008 and released it in 2009 [2]. In Bitcoin, the block size is restricted to 1 megabyte, and the average time to create a
block is 10 minutes [7]. A typical Bitcoin transaction may be processed between 3.3 and 7 times per second [7].
Transactions are directly restricted to 2-4 per second, which is not the most usual due to the growing size of the freshly created blocks,
nonetheless. A scalability issue may be defined as the network's average block size, block count, and number of payments [5].
Scalability is a significant issue for platforms built on blockchains [4]. A blockchain is a distinct ledger system that is used to produce,
distribute, process, and store bitcoin. "Blockchain," the system for maintaining records that powers the Bitcoin network, Nakamoto
Satoshi was the one who originally put out the fundamental idea of blockchain [8].
Satoshi Nakamoto [9] created Bitcoin in 2008, and it has since grown to be one of the most well-liked P2P programmes. It is based on
a blockchain that serves as a distributed ledger for transactions created by P2P network users. Bitcoin is the most appealing
cryptocurrency because of its traits like decentralization and immutability. Other cryptocurrencies, including Ether in Ethereum, have
been encouraged by its success [10], [11]. In order to fully use blockchain technology, Ethereum has offered the deployment of smart
contracts.
The architecture of reputation systems is challenged by new ideas brought by blockchain technology. Blockchains can also benefit
from reputation-based methods. A proof-of-reputation was put up by Gai et al. [12], in which reputation serves as a motivator for both
good behaviour and block publishing.
Blockchain is typically described as a distributed data format that can be duplicated and shared among network nodes and lacks a
central repository and authority. A blockchain is made up of continuously occurring blocks, each of which stores and records all
transactional data throughout time. Additionally, every block contains the cryptographic hash value of the preceding block, with the
exception of the first block (known as the genesis block). A blockchain is created by chaining together the hash values of each block.

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3.Blockchain Structure
The general data structure of a blockchain is shown in Figure 3.1. Numerous miners on the network keep the blockchain up-to-date.
They are referred to as the nodes attempting to produce new valid blocks that are confirmed by the proof of work process [13, 14], and
if successful, they will be paid in the cryptocurrency Bitcoin [15]. Every node in the network has access to every piece of data on the
public blockchain. However, until 51% of the nodes are hacked simultaneously, it is exceedingly difficult to change the data of any
block in the public blockchain.

Figure 3.1: Blockchain Structure

Each block contains data as well as the hashes of the one before it and the one after it. The chain's foundational block is known as the
Genesis block. Links join the new blocks to the older blocks in the chain. As a result, the hashes of previous blocks are present in
every block. This process generates a very secure blockchain. If an attacker attempts to modify the contents of a particular block, the
hash of that block will likewise change. However, the previous block hash is still there in the next block.
Because the subsequent block and all consecutive blocks lack the right hash of the preceding block, they become invalid. As a result,
altering even one block instantly invalidates all succeeding blocks. Consequently, the blockchain is a distributed and decentralised
network that is cryptographically updated and maintained by peer-to-peer consensus processes.
3.1. Peer-to-peer network for Transaction Processing
Our solution is based on Configuring five nodes with two clients using Flask where each client can interact with every other node in
the network.
The functionality of clients and all nodes were encapsulated within the server and running on a different port numbers as shown in
Figure 3.1.1 peer-to-peer blockchain network.

Figure 3.1.1: peer-to-peer blockchain network

3.2. Algorithm for transaction processing in peer-to-peer network

This section discuss about the client and node processing in various steps of Flowchart for transaction processing and is shown in
Figure 3.2.1.
Client Processing:
Step 1: Configure the five nodes with two clients.
Step2:Each client generates a wallet containing public key and private key using RSA Algorithm and it can be used as sender and
receiver address.

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Figure 3.2.1: Flowchart for transaction processing

Step 3: Sender makes a transaction by entering transaction details like sender address, receiver address to whom so concern and
amount to be transfer.
Step 4: Using SHA 256 algorithm the sender confirms the transaction by signing it using sender private key and specifying the node
address to which transaction to be added.
Node Processing:
Step 1: The specified node has received the transaction sent by the client.
Step 2: Those transactions are to be mined in ordered to create and add block to the blockchain along with the rewards sent by the
blockchain by solving the PoW Puzzle.
Step 6: Synchronize other nodes to update the blockchain transactions.
Step 7: View the transaction details by every node which would be added to the blockchain.

Working of Proof of Work (PoW) mining:

Proof of Work (PoW) mining is a method used by some cryptocurrencies to validate transactions and create new blocks on the
blockchain. In PoW mining, miners compete to solve complex mathematical puzzles to validate transactions and earn rewards in the
form of the cryptocurrency being mined. The PoW perform the mining as follows:
1.Transactions are broadcast to the network and collected into blocks.

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2.Miners compete to solve a cryptographic puzzle using their computer's processing power.
3. The network is informed of the answer by the first miner to finish the problem.
4. The answer is checked by other miners, and if it is accurate, the block is sent to the network.
5.The miner who solved the puzzle receives a reward in the form of newly created cryptocurrency, as well as any transaction fees
associated with the block.

The puzzles that are employed in PoW mining are intended to be computationally challenging and require a lot of computing power to
complete. By making them spend a lot of energy to do so, this is meant to stop bad actors from seizing control of the network. To add
a block to the network, miners (specialised computers on the network) must solve a challenging mathematical problem . This process
is known as proof-of-work and is depicted in Figure 3.2.2.

Figure 3.2.2: Proof-of-Work Consensus protocol

1.The miners mine the transactions which were bundled into a block.
2.To mine that transaction, a hard mathematical problem has to be solved. i.e. compute the hash (Tx+Pre-Hash+Nonce).
3. if hash (Tx+Pre-Hash+Nonce) = Mining Difficulty
4.Then return new block with valid PoW along with the reward which is to be awarded to a miner.
5. Else another miner tries to find the hash or else update the copy of blockchain.
6. The network regularly changes the difficulty level of mining a new block.

The new block is then posted to the blockchain when all the transactions that are accessible at the node have been verified. The node
broadcasts it simultaneously to the whole network while collecting a reward (given by the blockchain).

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4. Results and Discussions

Client generate a wallet containing public key and private key using RSA Algorithm and is shown in Figure 4.1 Generate wallet.

Figure 4.1: Generate wallet

Client Make a transaction by entering transaction details like sender address, receiver address and amount to be transfer and is shown
in Figure 4.2 Generate transaction.

Figure 4.2. Generate transaction.

Then client can confirm the transaction by signing it and specifying the node address to which transaction added as shown in Figure
4.3.

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Figure 4.3:Signing and Confirm the transaction

Once confirmed the transaction, then those transactions must be added to the specified node for mining purposes as shown in the
Figure 4.4 transaction added to Node.

Figure 4.4 transaction added to Node.

Mine the block of transactions to get the reward of a block. Synchronize all the nodes to update the blockchain transactions as shown
in the Figure 4.5 Mining the transactions.

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Figure 4.5:Mining the transactions

Figure 4.6: View transactions

View the transaction details shown in Figure 4,6 which would be updated by all the nodes in the network.

5. Conclusions
In this paper, the blockchain based transaction processing using Flask web framework in python has been implemented with the help
of RSA, SHA 256 and proof of work algorithms. The Proof of Work consensus process has some drawbacks, including a 51% risk
(i.e., if a controlling entity possesses more than 50% of network nodes, the entity might damage the blockchain by acquiring control of
most of the network) and being time-consuming (i.e., it takes a long time to verify transactions). To locate the correct solution that
must be solved in order to mine the block, miners must examine a large number of nonce values.
6. Future Scope
The future scope of blockchain for transaction processing is significant, and there are several areas where blockchain technology is
expected to have a transformative impact: Decentralized Finance (DeFi): Decentralized finance is an area that has already seen
significant growth in recent years, with the emergence of blockchain-based lending, borrowing, and trading platforms. DeFi platforms
enable users to transact without intermediaries, reducing costs and increasing access to financial services. As the technology matures,
we can expect to see further innovation and growth in the DeFi space.

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Digital Identity: Blockchain-based digital identity systems can provide individuals with greater control over their personal data and
enable secure and verifiable identity verification. This can have significant applications in areas such as voting, healthcare, and
financial services.
Cross-border Payments: Blockchain technology has the potential to revolutionize cross-border payments by enabling faster, cheaper,
and more secure transactions. By eliminating intermediaries and enabling direct peer-to-peer transactions, blockchain-based payment
systems can reduce costs and increase the speed and efficiency of international transfers.
Government Services: Blockchain technology can be used to improve the efficiency and transparency of government services, such as
land registration, voting, and tax collection. Blockchain can contribute to a decrease in fraud and corruption as well as an increase in
confidence and accountability in government services by offering a safe and verifiable record of transactions.

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