Blockchain-Integrated Iot For Secure Data Management In Banking Transactions

Abstract

The combination of Blockchain with Internet of Things technologies establishes new standards for banking transaction data security while delivering better transparency together with enhanced protection levels and operational efficiency. This research develops a blockchain system that combines a hybrid architecture with Federated Learning to verify transactions in real time across decentralized networks while maintaining privacy. Financial information remains secure through the combination of Zero-Knowledge Proofs (ZKPs) and Homomorphic Encryption which enables data processing while preventing disclosure to unauthorized parties. The Proof-of-Authority (PoA) consensus mechanism allows efficient validation procedures which minimizes computational requirements for IoT-enabled banking systems. AI-driven anomaly detection systems detect fraudulent activities in real-time for improved security performance. Through automation smart contracts execute transaction processing while reducing operational risks and eliminating human involvement. The paper introduces an optimized framework which integrates blockchain technology with IoT to secure and scale banking transactions while preserving privacy. The proposed model shows enhanced data reliability alongside quick processing capabilities while maintaining financial regulatory compliance to serve as a suitable banking structure today.