An Innovative Electronic Payment Framework for Secure Peer-to-Peer Transactions

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.