Central Banking Digital Currency Transaction Processor

Abstract

A safe, effective, and scalable transaction processing system is now essential due to the growing number of countries implementing Central Bank Digital Currencies (CBDCs). Even with their robustness, the current financial systems have difficulties scalability, security, and transaction speed while adjusting to the digital currency paradigm. Existing blockchain technologies, like Hyperledger Fabric, provide decentralized, transparent, and secure answers to these problems. However, performance and efficiency are severely constrained by the substantial processing overhead associated with handling transactions and carrying out smart contracts. In order to overcome these obstacles, the final year project develops a CBDC transaction processor that uses a ZYBO board for increased processing power and integrates Hyperledger Fabric as the underlying blockchain technology. The permissioned, modular network architecture of Hyperledger Fabric is perfect for preserving the scalability, integrity, and secrecy needed for CBDC transactions. To increase overall efficiency, compute-intensive tasks like cryptographic procedures and the execution of smart contracts are offloaded from the main blockchain network and handled by the ZYBO board, a flexible and potent processing unit. The project’s goal is to show how the ZYBO board and Hyperledger Fabric together can greatly increase transaction throughput and decrease latency. According to the system architecture, the ZYBO board functions as the Hyperledger Fabric network’s central processing unit, effectively carrying out intricate tasks. To verify the efficacy of the system, performance measures including processing latency and transactions per second (TPS) rates are subjected to extensive testing and analysis. Comprehensive testing is also used to assess the security and dependability of the suggested solution against various cyberthreats and failure scenarios. This study not only contributes to the actual deployment of digital currencies but also explores the wider possibility of integrating blockchain technology with specialized hardware accelerators by bridging the gap between current financial systems and the future needs of CBDCs. The results offer insightful information for future advancements in blockchain technology and digital currency transaction platforms that will improve financial services.