Ethereum Based Decentralized Application for Secure and Trustless Local Payments

The exploration of using the peer to peer technology in the field of communication and the digital currency has opened a new gateway for the development. It has changed the way of how the things were developed and executed. The introduction of first digital currency Bitcoin explores this idea of using peer to peer network for payments and has become quite popular. Once the digital currency started making its way in this field, much other digital currency with different features have come on the market using different protocols for the transactions and rewards as fees for transactions. Bitcoin and Ethereum are two most popular digital currencies in the world as of June 2017. Bitcoin introduced and successfully implemented the Consensus mechanism and protocols for the transactions. Ethereum Pushed and developed a platform where it can provide its programming languages to make more decentralized application with different purposes but using its blockchain and protocols. Smart-Contracts, an idea given by Nick Szabo was made possible to implement by the Bitcoin introduction and further developed by Ethereum to be used on its platform. Smart-Contract implementation on the Ethereum Platform has successfully given banking and financial institutions ways to implement and execute legal tenders on the blockchain. In this thesis, we researched on the smart contracts and protocols of the underlying Ethereum Blockchain and its working. While doing this, we tried to come up with some smart contracts which can be implemented and executed by a government or organization internally for its personal use as the commodity or as a digital currency. We tried to come with an implementation of smart contracts with and without the central Authority. We choose Ethereum for its security and its highly scalable nature.