TruChain: A Multi-Layer Architecture for Trusted, Verifiable, and Immutable Open Banking Data

TL;DR

TruChain introduces a layered architecture combining decentralized identity, cryptographic verification, and a distributed ledger to enhance trust, integrity, and immutability in open banking data sharing, addressing key security risks.

Contribution

It proposes a novel multi-layer system integrating source validation, data authentication, and tamper-proof storage for open banking data security.

Findings

System scales linearly with stable throughput

Achieves 100% data validation rate

Uses under 35% CPU and 350 MiB memory during operation

Abstract

Open banking framework enables third party providers to access financial data across banking institutions, leading to unprecedented innovations in the financial sector. However, some open banking standards remain susceptible to severe technological risks, including unverified data sources, inconsistent data integrity, and lack of immutability. In this paper, we propose a layered architecture that provides assurance in data trustworthiness with three distinct levels of trust, covering source validation, data-level authentication, and tamper-proof storage. The first layer guarantees the source legitimacy using decentralized identity and verifiable presentation, while the second layer verifies data authenticity and consistency using cryptographic signing. Lastly, the third layer guarantees data immutability through the Tangle, a directed acyclic graph distributed ledger. We implemented a proof-of-concept implementation of our solution to evaluate its performance, where the results demonstrate that the system scales linearly with a stable throughput, exhibits a 100% validation rate, and utilizes under 35% of CPU and 350 MiB memory. Compared to a real-world open banking implementation, our solution offers significantly reduced latency and stronger data integrity assurance. Overall, our solution offers a practical and efficient system for secure data sharing in financial ecosystems while maintaining regulatory compliance.