Developing an Effective Consensus Mechanism for a Secure Blockchain-Based Cross-Border Fund Transfer System

Cross-Border-Payments have grown in economic importance over the last few decades as international mobility of goods, services, capital, and people has increased. Some estimate that the value of cross-border payments will increase by ${\$}$100 trillion over the next ten years. This is why cross-border payments are such an intriguing and important issue. Cross-border payments are more difficult than domestic payments. The challenges are speed – slower transactions – cost – high remittance access – difficult to keep track – and low transparency. So, there is clearly a need to improve cross-border payments and bring them up to speed with domestic payments. The presence of corresponding banking networks is one of the key factors slowing down this process. The introduction of blockchain to this system could help solve some of the previously discussed issues by lowering costs, increasing transparency, and decreasing time. Blockchain has been making a noise for quite some time now because of its distributed ledger property and it is widely talked about by financial sectors such as Banks. Many of the financial sectors have setup innovation labs to conduct proof of concepts to show its harmless uses of blockchain. Industries studies have revealed that regulatory and compliance problems are the two biggest major issues provided resistance for the adoption of blockchain. To overcome these issues, we used a DATA layer, due to this regulatory and compliance requirements around the detail of transaction for validating the details of sender and receiver. The number of suspicious transactions could be minimized as there would be transparency during the network.