MercurX: Transaction Throughput Enhanced Permissioned Blockchain Based Solution for Capital Market Transaction and Settlement Automation

Abstract

The capital market efficient and scalable transaction processing is critical, due to the rapid and data-intensive nature of transactions. Traditional systems often struggle to handle the growing volume of trades, resulting in delays and errors. Blockchain technology, with its secure and transparent transaction capabilities and decentralized system, offers potential solutions by simplifying processes and reducing the need for intermediaries. However, current blockchain systems, particularly those based on public networks, face significant scalability limitations. This research project proposes a Transaction Throughput Enhanced Permissioned Blockchain-Based Solution for Capital Market Transaction and Settlement Automation, leveraging Hyperledger Fabric as the permissioned blockchain framework. The study focuses on enhancing the transaction throughput in the consensus mechanism of Hyperledger Fabric to meet the high demands of capital market operations. By optimizing the consensus protocols, this research aims to overcome the bottlenecks typically associated with resource-intensive validation and finalization processes, thereby ensuring that the blockchain system can handle high volumes of transactions efficiently and securely. The findings and proposed improvements aim to significantly contribute to the broader adoption of blockchain technology in capital markets, providing a framework that supports the automation of trades and settlements with enhanced performance and reliability.