Abhigyan Mukherjee

Abstract

With the growing reliance on peer-to-peer (P2P)
networks for digital transactions, traditional electronic payment
systems require enhancements to ensure security, efficiency, and
trust. This study introduces an innovative digital payment framework
enabling currency-based exchanges between consumers
and vendors within a peer-to-peer environment. The outlined
approach is inspired by Millicent’s scrip methodology and
leverages digital envelope encryption to bolster protection. Unlike
conventional payment methods that heavily rely on financial
institutions, the protocol minimizes their involvement, restricting
their role to trust establishment and transaction finalization.
The system introduces a distributed allocation model, where
merchants locally authorize payments, reducing transaction overhead
and enhancing scalability. Additionally, the protocol is
optimized for repeated payments, making it particularly efficient
for recurring transactions between the same buyer and merchant.
By integrating cryptographic techniques and decentralizing payment
authorization, this protocol presents a secure, efficient, and
scalable solution for digital payments in P2P environments.