Design and Implementation of Financial Smart Contract Services on Blockchain

Blockchain technology is disrupting current business models and practices by making intermediary services obsolete and the term has become a buzzword worldwide. One particular area based on the distributed ledger technology that has grabbed the attention of many financial businesses is "Smart Contracts". A lot of research is going on to harness its full potential in many fronts from small to large financial businesses. Currently, the Collateral Smart Contract Services (CSCS) are manually processed in financial institutions. The main objective of this research is to help financial institutions in choosing the most appropriate financial instrument for CSCS and allow its automated trading using blockchain technology, which we have achieved on one of the prominent blockchain platforms. We have designed a Chaincode for CSCS using Hyperledger Fabric, maintaining a transparent distributed ledger for the CSCS between financial institutions. The clients in the network are permissioned and possess certificates that they utilize to interact with the Hyperledger Fabric network. Go programming language has been used to create contracts on Hyperledger Fabric. One of the main challenges in the implementation has been to identify different elements that are required to get the network and chaincode running on the Hyperledger. We have designed a network consisting of multiple organizations each one connecting with other organizations for the Hyperledger transactions, for achieving collateral services among these institutions. The experimental evaluation criteria designed for this study could be used as formal procedure for designing financial smart contracts on Hyperledger.