Volume 3, Issue 6, June – 2018 International Journal of Innovative Science and Research Technology

ISSN No:-2456-2165

Bitcoin Service Transaction

Shilpa M, Jaritha M, Jayalakshmi G, Bhuvana B, Meghana C G
Department of Computer Science
Sapthagiri College of Engineering, Bengaluru

Abstract:- Bitcoin is the first decentralized digital trusted party, expect for the transactions with physical
encrypted currency and worldwide payment system. currencies. Cryptographic electronic payments are the major
The system works without a central bank or single alternative for trusted third party system. The main objective
administrator. It has a peer-to-peer network. The of work is, in the existing scenario bitcoins mechanism was
transactions take place between users directly, and no selective and equally distributed and the transactions were also
intermediary necessary. The verification of transactions equally distributed. But by using randomly distributed
takes place with the help of network nodes by means of artificial intelligence mechanism, the transactions are user
cryptography. Blockchain is the public distributed independent for the chosen coin frequency, as the procedure is
ledger used to read transactions. The smart coins with offline hackers cannot easily intrude into the transactions, or
associated non uniformed funds for smart transactions obtain the amount details. This is unstable and unstructured
are created. These transactions are with secured online flow. Transactions are limited in the existing scenario, which
OTP gateways with user friendly selection with volume is enhanced.
of transactions. Fully service oriented architecture has
II. RELATED WORK
to be online with asynchronous transactions facility and
automated with selective transactions with email
A. Social media networks Fraud
security gateway (OTP). This way transactions will
Everybody is tending to use the e-wallet in the current
carry on with fully non distributive model with a new
situation of currency demonetization. Among the e-wallets,
framework (in this work we created a new framework
simpler and useful for making money is the Bitcoin wallet. A
called CST). So transactions with funds framed from
trusted confirmation is required for bitcoin transactions. Anju
coin's funds is reduced and visually appears to the user.
et al [1] proposed a framework; bitcoin trading including the
social media which is new method was introduced. A trusted
Keywords:- Cryptocurrency, blockchain, gateway, OTP.
confirmation can be got from friends in a friend circle of a
social media. But still by using the information of real users
I. INTRODUCTION
some fraud identities can create fake news about bitcoin
trading. The system blocks the fake posts and reports about
Bitcoin is a digital currency system proposed by Satoshi
fake identities in such situations.
Nakamoto and then gained popularity due to its invisibility
and decentralized design characteristics. One core technique of
B. Use of digital signatures to prevent double spending
Bitcoin is called Blockchain, which is a peer-to-peer ledger
Online payments would be allowed to be sent directly
system keeping track of all bitcoin transactions and the order
from one party to another without going through a financial
of the transactions. The set of bitcoin transactions are recorded
institution by a purely peer-to-peer version of electronic cash.
in blocks. Owners of bitcoins can generate new transactions by
The main part of the solution can be digital signatures, but in
broadcasting blocks of the transactions to the Bitcoin network.
order to prevent double spending trusted third party is still
Then, a process called mining confirms the transactions and
required where its benefits are lost. Satoshi Nakamoto [2]
includes the transactions to the Blockchain. Essentially,
proposed a solution using a peer-to-peer network for the
mining is a randomized distributed agreement of component
double-spending problem. When forming a record that cannot
that confirms pending transactions by including them in the
be changed without redoing the proof-of-work, the
Blockchain.
transactions are time stamped by network by hashing them
into an ongoing chain of hash-based proof-of-work. The proof
To process electronic payments, the financial institutions of the sequence of events witnessed and the proof that it came
serve as trusted third parties, where the online commerce relies from the largest pool of CPU power is the longest chain.
on it. Even though the system works fine for most of the They'll generate the longest chain and outpace attackers as
transactions, trust based model is its major weakness. It is not long as a majority of CPU power is controlled by nodes that
possible to perform completely non-reversible transactions, are not cooperating to attack the network. A minimal structure
since financial institutions cannot give up on mediating
is required by the network. On a best effort basis messages are
disputes. The transaction costs are raised due to the raised broadcasted, and nodes can leave and rejoin the network,
median cost and also limiting the minimum practical accepting the longest proof-of-work chain as proof of what
transaction size and lowering the possibility for small casual happened while they were gone.
transactions, and there is a greater cost in the loss of ability to
make non-reversible payments for non-reversible services. As
C. Bloom Filter Implementation
the possibility of reversal is needed, the need for trust becomes Kota et al [3] have proposed a privacy-preserving Bloom
essential. Vendors must be careful about their customers, not filter design for Bitcoins’ SPV (Simplified Payment
giving out more information than they would otherwise need.
Verification) client based on ϒ-Deniability. Although it has
A certain percentage of fraud is accepted as unescapably.
been said that introducing Bloom filter improves the privacy
There is no existing mechanism to make payments without the

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Volume 3, Issue 6, June – 2018 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
level of an SPV client, none of the specific privacy metric is C. Skeleton
specified. The call to the actual remote object implementation is
dispatched by skeleton. Every remote object will be having a
D. SMS system to access bitcoin wallet corresponding skeleton, in case of remote JVM but the Java 2
Kishor Krishnan et al [4] presented a method to acquire a platform-only environment doesn’t require any skeleton.
Bitcoin wallet and access it using a low-end mobile phone, just
by sending an SMS. This system was developed as a proof of D. Bitcoin logic
concept and to demonstrate its feasibility, but it still requires Here the randomly distributed artificial intelligence is
other functionalities for it to be a fully functional system that used to distribute the amount to each coin and again
can be made available to people. distribution at each transaction using same mechanism takes
place.
E. Study of security flaws in bitcoin to affecting currency
value E. One Time Password
John et al [5] investigated whether the security flaws The disadvantages of traditional password-based
surrounding Bitcoin have affected the value of the currency. authentication were overcome by OTPs. Two factor
The results gathered in the resulting investigation suggest that authentication is incorporated by number of implementations
security flaws and security breaches in Bitcoin services have ensuring that it require access to something a person has such
been the greatest factor contributing to the drop in value of as a small key. The reversal of the function used to create otp
Bitcoin. The underlying Bitcoin protocol has only once caused is difficult and hence the attacker cannot obtain the data that
a drop in value and has never succumbed to a targeted cyber- was used.
attack. The conclusion drawn from these results is that the
Bitcoin technology is strong enough to gain mainstream IV. THE PROPOSED ALGORITHM
popularity and could rival traditional technologies. The high
volatility of the value of Bitcoin is not as a result of the  Algorithm for service
underlying technology but instead as a result of Bitcoin Step 1: The individual funds is updated to a variable Up,
services not being strong enough and being compromised by which is integrated and stored in Bk, where Bk is the total
various parties. funds from various banks.
Bk =
III. SYSTEM ARCHITECTURE

Step 2: The recent user’s bank details and the information

about the funds is stored in cache which is indicated as Fs.
c1 refers to customer one and CACHE is a storage area for the
funds.
Fs (c1) = CACHE (Bk)

Step 3: GET is used to obtain the total money from the fetched
details of each user, Tm is a variable where the total money is
stored.
Tm = GET ( Fs (c1) )

 Algorithm for bitcoin logic

Step 1: Initialize the value of λc, where λc is the total number
of coins.

Step 2: Store the total money in a variable Tm.

Fig 1:- Bitcoin service system architecture
Step 3: The amount in first amount is divided equally and
A. Force service assigned to next coins.
The service lies on the main server, client can access this Tm [1,2] = Tm/2
service by using bitcoin algorithm explained below, the
service has to be activated before the coin generation and Step 4: The funds from the above generated coins will be
transaction. The service checks if the client is in the blocklist if randomly divided to further coins.
so, he will be not allowed to perform transaction. This service temp1 = Tm [1,RAND]
will assist in collection of amount from various banks and coin temp2 = Tm [2,RAND]
generation.
Step 5: Calculate Tm[3], which is the value of the third coin.
B. Stub This process is repeated for any number of coins specified
To present the simple invocation mechanism to the in the input.
caller, the network-level communication and serialization of Tm[3] = temp1 + temp2
parameters is hidden. This task is accomplished by stub.

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Volume 3, Issue 6, June – 2018 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
Step 6: The value Tn is initialized i.e, the number of
transactions. In each transaction the division of the amount to
coins is performed as in step 3 and step 4.

V. IMPLEMENTATION

First the service has to be started, Service will be created

on SOAP architecture with SOA model. At service side solid
skeleton has to be generated for DOM or SAX parsers to parse
the broad casting XML envelopes. Normally SOAP
transmission will take in the form of XML only and these
XML envelopes will be parsed by skeleton at service side and
stub at client side. User registers into the system presenting his
unique username and password which will be stored along
with his various bank account details like the amount he wants Fig 2:- Coin value and frequency of transaction
to transact through bitcoin wallet. Once the user wants to
perform the transactions of the amount in his bitcoin wallet,
user logs into the system using his credentials. Now the system
validates his login credentials with the existing accounts. If the
user holds the account in the bitcoin wallet the total amount
from various banks is calculated. The user decides on the
number of coins necessary for the transaction. The distribution
of the amount to each coin is displayed where the coin
distribution happen using randomly distributed artificial
intelligence. Next the frequency of transaction has to be given
by the user. In order to select the transaction secondary
verification process like OTP generation is initiated, OTP will
be generated with 4-roll algorithm and with capital letter with
numeric ceiling with proper security and will be sent as mail
for further transactions. The email is implemented in gateway
model and OTP will be sent using ROTA algorithm for
encryption and decryption. If the verification is not satisfied
the transaction fails. On the successful verification, user
selects the number of transactions. The amount is distributed
from each coin to various transactions using randomly
distributed artificial intelligence. The final outcome is Fig 3:- Whole coins history
displayed in the graphical format, which indicates the
distribution of amount to various coins in each transaction.

VI. RESULTS

It is the choice of the user to decide on the number of

coins to which the money in the account has to be distributed
and the number of transactions that has to be performed from
the coins.

The figures show the distribution graph when the user

chooses three coins and three transactions. In every transaction
graph the amount that is remaining after the distribution is
depicted and hence in the last transaction graph the amount
remaining a null since the transactions is completed. The
distribution of funds is user independent, the user himself is
unaware about the transaction fund details and hence it is
protected from the third party interference. As the system
works offline, the intruders through online details cannot
obtain the transaction information and hence the system is Fig 4:- Initial transaction graph
secure.

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Volume 3, Issue 6, June – 2018 International Journal of Innovative Science and Research Technology
ISSN No:-2456-2165
VII. CONCLUSION AND FUTURE WORK

We have described how our solution provides a higher

security level without any trust worthiness assumption over
the devices involved in the payment protocol. Limiting data
access in a physical device is extremely difficult problem. The
possible outcome is, by using the Randomly distributed AI
model of forward and reverse engineering the transaction can
be done in the form of bitcoins. With respect to the choice of
coins and transactions required by the user, the distribution of
amount is user independent. As the system runs offline, it can
protect the transactions from cybercrime or third party
interference through online data. Usage of OTP (One Time
Password) is an enhanced second level security for the system.
Fig 5:- Transaction 2 graph The financial intermediates like the government or banks
cannot interrupt the transactions of the user, which is the major
benefit of the bitcoin account. We are working on an enhanced
version that will allow digital credit to be spent in multiple
offline transactions while maintaining the same level of
security and usability.

REFERENCES

[1]. “An Efficient Bitcoin Fraud Detection In Social Media

Networks ” , Anju Viswam , Gopu Darsan , 2017
[2]. “Bitcoin: A Peer-to-Peer Electronic Cash System” ,
Satoshi Nakamoto
[3]. “Design of Privacy-preserving Mobile Bitcoin Client
Based on ϒ-Deniability Enabled Bloom Filter”, Kota
Kanemura, Kentaroh Toyoda, Tomoaki Ohtsuki, 2017
Fig 6:- Final transaction value when the user chooses three [4]. “Development of an SMS System Used to Access Bitcoin
coins and three transactions Wallets”, Nelisiwe Peaceness Dlamini, Mfundo Shakes
Scott, Kishor Krishnan Nair, 2017
[5]. “Have the Security Flaws Surrounding Bitcoin Affected
the Currency's Value?”, John Gregor Fraser and Ahmed
Bouridane, 2017
[6]. ”Introduction to bitcoins: a pseudo-anonymous electronic
currency system.” Martins, S. and Yang, Y. (2011).
[7]. ”Fully Off-line secuRe CrEdits for Mobile Micro
Payments”, Vanesa Daza, Roberto Di Pietro, Flavio
Lombardi and Matteo Signorini, 2014.
[8]. ”An improved off-line electronic cash scheme”, Wang, C.,
Sun, H., Zhang, H., and Jin, Z, 2013.

Fig 7:- The encrypted bank details

Fig 8:- The decrypted bank details

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