Abstract: This synopsis presents a practical and secure online banking prototype that blends a traditional relational database with a private blockchain ledger. The goal is to improve integrity, transparency, and auditability of banking transactions without compromising usability or performance. The work starts by tracing the evolution of digital banking—from branch-led paper systems to ATMs, online and mobile banking—highlighting how centralization remains a single point of failure and a lucrative target for attackers. It then introduces blockchain as a distributed, append-only, tamper-evident ledger, and explains how its built-in cryptography and consensus mechanisms create a powerful audit trail for financial records.
The proposed system anchors every transaction to a private blockchain (for immutability) while keeping sensitive customer data in an ACID-compliant PostgreSQL database (for privacy and performance). A two-password security flow—static MPIN for login and OTP for authorizing each transaction—helps reduce account takeover risk. The prototype is built with Python (Flask), uses Proof of Work (PoW) for demonstration, and includes an admin dashboard with a blockchain explorer. Testing shows responsive user interactions via asynchronous mining, and the roadmap outlines a move to permissioned consensus (PBFT/IBFT) for scale. Overall, this hybrid approach offers banks a credible, evolutionary path to stronger security, more efficient auditing, and faster reconciliation with familiar tools and user experiences.

Downloads: | DOI: 10.17148/IARJSET.2025.12816