International Journal of Engineering Insights: (2024) Vol. 2, Nro.1, Regular Paper

https://doi.org/10.61961/injei.v2i1.13

Security aspects in the implementation of blockchain in

payment gateway transactions in Ecuador

Kerly Naranjo Paez · Renato M. Toasa

Received: 20 Dec 2023 / Accepted: 24 Feb 2024 / Published: 15 May 2024

Abstract: This paper explores the security aspects in-

volved in implementing blockchain technology in pay-

ment gateway transactions within the Ecuadorian con-

ber attacks targeting centralized servers, while its im-

mutability ensures the integrity of transactions. Addi-

tionally, authentication mechanisms such as digital sig-

natures and smart contracts help ensure that only au-

thorized parties can participate in and validate trans-

actions. Furthermore, blockchain’s transparency facil-

itates auditing and compliance with financial regula-

tions. This paper discusses how leveraging blockchain

technology can significantly improve security in pay-

ment gateway transactions in Ecuador and provides in-

Currently, payment gateways have certain limitations

in terms of security and efficiency compared to solu-

tions based on blockchain. Payment gateways typically

centralize transaction data on servers controlled by the

entity operating the gateway. This can be a point of

Kerly Naranjo Paez

Universidad Tecnol´ogica Israel

Quito, Ecuador

E-mail: e1726773169@uisrael.edu.ec

Renato M. Toasa

vulnerability, as if these servers are compromised by

attackers, there is a risk of financial information and

personal data of users being stolen [1].

payment gateways has significantly improved over the

years, and many companies have implemented robust

security measures to protect transactions and user data.

However, blockchain technology has the potential to

revolutionize the security and efficiency of transactions

in payment gateways. Additionally, it offers features

such as immutability, transparency, and decentraliza-

tion that can address some of the challenges mentioned

earlier in the context of online transactions [3].

The implementation of blockchain in payment gate-

are users who make purchases of goods or services on-

line and use their bank cards to complete the order and

acquire the goods [5].

In particular, this proposal focuses on Sustainable De-

velopment Goal number nine, closely related to innova-

tion, which is considered key to finding a lasting solu-

tion that provides security, efficiency, and trust to peo-

ple when making an online purchase. Additionally, it

stimulates innovation in the financial services sector. It

can lead to the development of new technological so-

2 International Journal of Engineering Insights, (2024) 2:1

tection of banking information, as well as documents

that detail in-depth fundamental concepts of blockchain

and its application in different areas. Initially in [6], the

authors describe blockchain as a technology that goes

far beyond Bitcoin and cryptocurrencies. Although Bit-

coin was the first successful application of blockchain,

this technology has a wide range of use cases in vari-

ous industries and fields. Based on the authors’ opinion,

this statement leads to further exploration of the pro-

technology and Google’s Firebase mobile application

development platform. The system aims to enhance ef-

ficiency and transparency in the electricity billing pro-

cess, leveraging the security and decentralization fea-

tures of Ethereum and the rapid application develop-

ment capabilities of Firebase [8]. Finally, in [9], the au-

thors describe a blockchain design solution emphasizing

the unique features offered by blockchain, such as de-

centralization, transparency, and security.

The analysis of this solution is closely related to

2 Methodology

2.1 Focus

A bibliographic, analytical, and direct observational in-

vestigation is conducted aiming to identify and compre-

hend the techniques and strategies employed by pay-

ment gateways, while also devising action plans to ad-

dress the impacts of attacks and prevent future inci-

dents [10].

The aim is to create a proposal that facilitates the adap-

tation and integration of blockchain technology to en-

ciency, profitability, and continuous measurement, while

plete and transparent visibility of the process for all

parties involved.

2.2 Analysis

According to the research and methodology described

above, the proposal to implement blockchain technol-

ogy in payment gateways in Ecuador, as well as in any

other country, is deemed feasible. The analysis con-

ducted through direct observation method entails de-

tailed observation of the processes involved in online

payment transactions to identify potential weak points

tent exposure of this data could result in identity theft

or financial fraud.

Intermediary attacks: Communication between

the user, the payment gateway, and the payment ser-

vice provider can uncover potential points of vulnera-

bility where attackers could intervene and manipulate

information during transmission. This could lead to in-

termediary attacks, such as data interception or iden-

tity impersonation.

Authentication vulnerabilities: When observ-

interaction with the payment gateway interface, it is de-

termined that there may be vulnerabilities in the under-

lying software, such as security breaches, injections of

malicious code, or weaknesses in session management.

Social Engineering Attacks: Observing the in-

teractions between the user and the payment gateway

reveals potential social engineering tactics used by at-

tackers to deceive users and obtain confidential infor-

mation, such as login credentials or credit card details.

This analysis enables proactive steps to be taken to

tication and mitigate vulnerabilities in this critical se-

tication, and decentralized identity management, it is

3 International Journal of Engineering Insights, (2024) 2:1

resistant to attacks. Figure 1 depict the flow of sensitive

information in an online payment process.

or services they wish to purchase and proceed to the

payment screen.

Choice of payment gateway: The user chooses

the payment method they wish to use, such as credit

card, debit card, or other methods accepted by the mer-

chant.

Redirection to the payment gateway: Once the

payment method is selected, the customer is redirected

to the payment gateway screen, where they enter their

and verify if the customer has sufficient funds to make

the purchase.

card issuer bank or digital wallet provider responds to

the payment gateway’s authorization request, indicat-

ing whether the transaction is approved or rejected.

Transaction confirmation: The payment gate-

way sends a confirmation message to the merchant’s

website or application, indicating whether the transac-

The operation of a blockchain payment gateway in-

volves several steps that combine blockchain technology

components are:

Transaction initiation: The process begins when

a customer makes an online purchase and chooses to

blockchain containing relevant information about the

transaction using their private key, ensuring the authen-

4 International Journal of Engineering Insights, (2024) 2:1

5 International Journal of Engineering Insights, (2024) 2:1

delving into the application of blockchain across various

The vulnerabilities and threats detected in the flow

of a bank transaction through a payment gateway have

allowed us to understand that currently, companies pro-

viding this service face significant challenges and possi-

bilities of being attacked due to handling sensitive and

valuable user information in e-commerce. By design-

ing a proposal that promotes the implementation of

ment transaction process, we have paved the way for

est.

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License

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M. Toasa.

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