Secure and Transparent Asset Lending System Using Block Chain
Article Sidebar
Main Article Content
The conventional asset-backed lending business is often reliant on outdated data management platforms and opaque storage platforms, presenting the industry with very daunting problems, including security breaches, the lack of verifiable ownership histories, and obscure asset disposal practices. To address this, this study came up with a safe web-based system that digitalizes the activities of loans by applying the blockchain technology. The platform is integrated with a modern online architecture, which uses a Virtual Vault Guard to implement the dual-key access protocol, as well as AES encryption and SHA-256 hashing that would guarantee that data about the assets are safely secured on-chain. Smart contracts were automated to create digital receipts that were immutable and to conduct digital bidding of defaulted loans in an atomic swap. The empirical research indicates that the ecosystem improves the general performance of management in terms of availing very structured, secure digital data storage and reliable auditing facilities. The paper concludes that the implementation of a blockchain-based system, which is associated with immutable receipts and transparent bidding, is necessary to ensure complete security, fairness, and efficiency. Based on this, the study suggests that the lending institutions should incorporate this secure ledger of assets and automated system of bidding to enhance customer confidence by providing verifiable digital receipts as well as to provide fair and transparent recovery of capital.
Downloads
References
J. L. Phiri and L. Nsama, "Decentralized frameworks for physical asset tokenization and secure lending," Journal of Financial Technology and Blockchain, vol. 4, no. 2, pp. 112-125, 2025.
A. Sahara, B. T. Nugroho, and C. Wibowo, "Smart contract automation for transparent loan execution and liquidation," International Journal of Digital Assets, vol. 7, no. 1, pp. 45-58, 2025.
R. Alfianda, S. Maulana, and T. Hidayat, "Evaluating AES encryption and SHA-256 hashing in decentralized lending platforms," IEEE Transactions on Secure Computing, vol. 12, no. 3, pp. 210-224, 2025.
R. Senthil, "Architectural patterns for integrating React and Spring Boot in high-security financial applications," Journal of Web Development and Engineering, vol. 9, no. 4, pp. 334-349, 2024.
Y. Yan, "Dual-key access control mechanisms for virtual vault guards in modern pawnshops," International Journal of Information Security, vol. 11, no. 2, pp. 88-102, 2023.
F. Schär, "Decentralized finance: On blockchain- and smart contract-based financial markets," Federal Reserve Bank of St. Louis Review, vol. 103, no. 2, pp. 153-174, 2021.
Z. Zheng, S. Xie, H. Dai, X. Chen, and H. Wang, "An overview of blockchain technology: Architecture, consensus, and future trends," IEEE International Congress on Big Data, vol. 6, no. 1, pp. 557-564, 2017.
K. Christidis and M. Devetsikiotis, "Blockchains and smart contracts for the internet of things in asset management," IEEE Access, vol. 4, pp. 2292-2303, 2016.
A. Kosba, A. Miller, E. Shi, Z. Wen, and C. Papamanthou, "Hawk: The blockchain model of cryptography and privacy-preserving smart contracts," IEEE Symposium on Security and Privacy, vol. 2, no. 1, pp. 839-858, 2016.
L. Luu, D. H. Chu, H. Olickel, P. Saxena, and A. Hobor, "Making smart contracts smarter in decentralized finance," ACM SIGSAC Conference on Computer and Communications Security, vol. 8, no. 3, pp. 254-269, 2016.
Yamane, T. (1967). Statistics: An Introductory Analysis. 2nd Ed. New York: Harper and Row. [12] H. Treiblmaier, "Toward more rigorous blockchain research: Recommendations for writing blockchain case studies," Frontiers in Blockchain, vol. 2, no. 3, pp. 1-15, 2019.
M. Vukolić, "The quest for scalable blockchain fabric: Proof-of-work vs. BFT replication," Open Problems in Network Security, vol. 9, no. 2, pp. 112-125, 2015.
Herlihy, M. (2018). "Atomic Cross-Chain Swaps." Proceedings of the 2018 ACM Symposium on Principles of Distributed Computing, pp. 245-254. [15] J. Bonneau, A. Miller, J. Clark, A. Narayanan, J. A. Kroll, and E. W. Felten, "SoK: Research perspectives and challenges for Bitcoin and cryptocurrencies," IEEE Symposium on Security and Privacy, vol. 3, no. 1, pp. 104-121, 2015
P. Modesti, L. Freitas, Q. Shotomiwa, and A. Almehrej, "Security analysis of the open banking account and transaction API protocol," Cyber Security and Applications, vol. 3, pp. 100-115, 2025.
M. A. Kadam, A. Jangid, and N. Singh, "Embedded finance: Scope, challenges and opportunities," BVIMSR Journal of Management Research, vol. 16, no. 2, pp. 45-58, 2024.
Traceable AI, "API Security Report: Financial Sector Vulnerabilities," Technical Report on Cybersecurity in Fintech, pp. 12-29, 2023.
ITU-T, "Recommendation F.751.8: Technical framework for distributed ledger technology (DLT) to cope with regulation," ITU-T Series F: Non-telephone telecommunication services, vol. 1, no. 1, pp. 1-24, 2023.
IEEE Standards Association, "IEEE P2418.1 Standard for the Framework of Blockchain Use in Internet of Things (IoT) and Distributed Systems," IEEE Standards for Emerging Technologies, pp. 101-118, 2023.
OpenID Foundation, "Financial-grade API (FAPI) Security Profile – Part 1: Baseline," OpenID Foundation Security Framework, vol. 3, no. 1, pp. 77-92, 2023.
B. Tekinerdogan, Ö. Köksal, and T. Çelik, "System architecture design of secure distributed platforms," Applied Sciences, vol. 13, no. 7, pp. 4173-4188, 2023
This work is licensed under a Creative Commons Attribution 4.0 International License.
All articles published in our journal are licensed under CC-BY 4.0, which permits authors to retain copyright of their work. This license allows for unrestricted use, sharing, and reproduction of the articles, provided that proper credit is given to the original authors and the source.