Using Ethereum Smart Contracts for Payment Transactions

Abstract

Blockchain as a technology is being more and more common, both in software development industry and in many spheres of business, such as law, finance and many others. The use of blockchain technology provides many advantages in terms of decentralization, information security and concealment. Ethereum, which provides the possibility of using smart contracts, stands out as one of the most frequently used blockchain platforms. The use of smart contracts provides a more efficient alternative to traditional way of the key aspects of business, such as making payments, traditional payment being the one executed in e-payment system, or specifically EMV payment systems. The use of smart contracts in the execution on the Ethereum platform is researched in this paper. The paper showcases overview of blockchain tecnology and an example of a smart contract written in the Solidity programming language, over which the examination was performed and the main aspects were explained. Main vulnerabilities of Solidity programming language are given. Finally, in the conclusion, comparison, or rather the advantages of payment systems based on blockchain over the traditional electronic payment systems are also considered.