DESIGN AND IMPLEMENTATION OF A DIGITAL CASH TRANSACTION SYSTEM

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

The act of exchanging goods and services is an old and enduring venture. The fact that man cannot satisfy his own needs all by himself has necessitated the need trade. Trading has evolved from its primitive stages to a more advanced and sophisticated form. One of the primitive forms of trade is the trade by barter. The trade by barter preferred to some extent the necessary solution to the problemexchange; it however, has so many inadequacies attached. The problem of mutual coincidence of wants among others is a major setback to the development of the system. The advent of the paper cash system was a major breakthroughin the systemexchange (trade) as paper cash possesses certain properties (homogeneity, portability malleability), is backed by the government and the central bank is a  legal tender for exchange. The paper cash system indeed contributed enormously to the ease with which trade is being carried out (Ballou, 2019).

The landmark achievement however in the areas of electronics, computers and information technology coupled with the need to carryout transactions at a very fast rate has paved the way for the digital cash transaction system. The digital cash transaction system evolved after the paper cash. It involves the use of digital pin codes to represent paper cash with transactions carried out on this basis. More technically, digital cash transaction system is a payment or withdrawal message bearing a digital signature (pin code) and function are medium of exchange (trading).

Essentially, digital cash mimics the functionality of paper cash. Paper currency and coins represent value because they are backed by a trusted third party, the government and the banking sector. Digital cash transaction system also represents value because it is backed by a third party usually a bank that is willing to convert digital cash to physical cash (Billington, 2014). To a degree, the digital cash transaction system operates in the following manner. A user opens an account in a bank and is being given the digital cash transaction card. He or she is also given his or her pin code for the card that is confidential to that person. That is the pin should not be known to another person. The owner of a card can deposit money into his or her account by going to the bank. The transaction can be used to withdraw money outside to the bank, buy things from shopping malls or merchant sites and can also check his/her account balance in any of these places.

1.2     Statement of the Study

Money in all its various forms since its invention has always been faced with security problems. The digital cash transaction system though a cutting edge innovation as far as technology of money is concerned is not spared of this dilemma. Specific issues relating to the security of the system that needs to be addressed are;

a.      Illegal access to financial data of individuals by hackers

b.     The problem of unencrypted files which creates security loop holes in current cash transaction system.

c.      The existing. physical cash system is subject to physical damage as someone can lose his money without actually spending it

1.3     Aim and Objectives of the Study

The aim of this project is design and implements a secured digital cash transaction system. To achieve the stated aim, the following specific objectives were laid out:

a.      Incorporate an effective security design into digital cash transaction system to prevent all forms of excess spending of available money in owner’s account i.e. spending above what you have in your account or withdrawing what you have in your account.

b.     Encrypt all transactions going on in the system to prevent reading of data by unauthorized users.

c.      Develop a database design that aids fast synchronization during verification of account which is necessary.

d.     Evolve a design that totally ensures customers anonymity without compromising security in digital cash transaction system.

1.4 Purpose of the Study

Since the enthronement of democratic process in Nigeria in 27th of May 1999, there has been huge foreign investment in the economy. The rate at which financial transaction are carried out has increased significantly. Without a medium of doubt, the prevalent use of paper cash is gradually giving way to a new system of payment, which is digital cash transaction system.

An emerging generation of information technology (IT) survey, Nigerian are driving the for e-payment system which is becoming increasingly popular because of its convenience. Though, the growth trend is towards the offline digital cash (examples ATM, Master card, and Visa International) where cards (metal or plastic) are used for withdrawals on special machines made for the purpose. The online digital cash transaction system which involves the use of computers with connection lines is however on the increase as well.

However, because of the increasing trend of corruption in the country, lack of adequate security has been a major setback in the growth of the digital cash transaction system. It could be deduced from the above that the performance of the digital cash system will be a major determinant of economic growth in Nigeria, given the present trend worldwide. The study is of particular importance in the Nigeria Economy where lack of adequate security has impaired the steady growth of digital cash in the economy. It seeks to explore possible software design features as a basis for securing the digital cash system against illicit operations.

1.5     Scope and Limitations of the Study

The scope of this project covers the online model of the digital cash transaction system. The system provides a private, secure, untraceable, decentralized digital currency. You are your bank, you control your funds, and nobody can trace your transfers unless you allow them to do so

The developed system uses a cryptographically sound system (RC5 algorithm) to allow you to send and receive funds without your transactions being easily revealed on the block chain (the ledger of transactions that everyone has). This ensures that your purchases, receipts, and all transfers remain absolutely private by default.

The design of software will be exploited to ensure adequate security in the digital cash transaction system.

1.6     Significance of the Study

The management system will be of great benefit to businessmen and it will improve the managerial cum administrative strength of the business and move the business forward to meet the demand of times and globalization in this era of technology. It provides easy record of goods and proper identification of sales. This piece of work will add to the already existing literature review and act as a reference work for future researchers.

1.7 Project Methodology

There are approaches are also referred as Software Development Process Models. These processes model follows particular life cycle in order to ensure success in process of software development. One such approach which is used in this project is waterfall model. It was the first process model to be introduced and followed widely in software engineering to ensure success of the project. In the waterfall approach, the whole process of software development is divided into separate process phases. The phases in the waterfall model are: Requirement specification phase, Software design, Implementation and maintenance. All these phases are cascaded to each other so that second phase is started as and when defined set of goals are achieved for first phase.

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