Hybridization of Blockchain and Cryptography to Secure a Transaction Using Smart Contacts

Although often equated to a large database owing to the nature of its use,
Blockchain technology is fully distinct due to its fully uncontrolled structure.
These traits make it beneficial for changing how finances are exchanged as it is
safe and trustable. Moreover, integrating modern cryptography such as AES-256
for encryption and ECDSA for signatures into a blockchain system can elevate its
level of security to greater heights. This research examines the prospect of
developing a hybrid model which incorporates the use of blockchain in accordance
with cryptography to reinforce security for financial transactions. It implements a
two-tier architecture comprising of a public and private layer to enable visibility
and secrecy. Apart from the aforementioned cryptographic measures for security,
an AI-based concept of fraud detection is integrated into the model which
internally checks for suspicious activity in real-time with a 91% average success
rate. The proposed model tries to solve issues like scalability and efficiency and
does this through deploying smart contracts on a private Hardhat blockchain.
Testing out in the real world averaged the transaction time to be around 15 seconds
while the system performed well when multiple processes were executed at the
same time. Not only does this project serve to emphasize the chances of hybrid
encryption blockchains in the reduction of risks around online transactions but
also defines the role in establishing a more secure, efficient, and scalable financial
ecosystem