IMPLEMENTING SHA-256 IN BLOCKCHAIN FOR SECURE AND TRUSTED ONLINE TRANSACTIONS OF MSMEs

Matthew Luis, Rico Wijaya Dewantoro, Andrian Reinaldo Crispin, Adya Zizwan Putra, Abdi Dharma, Celine Chrysia, Cherry Piya Vagga

Abstract


The advancement of information technology has driven digital transformation in various sectors, including Micro, Small, and Medium Enterprises (MSMEs), which are vital to Indonesia's economy. However, local MSMEs still face challenges in online transactions, especially related to data security and low consumer trust. Issues like data manipulation, lack of transparency, and weak security systems hinder optimal digitalization. This study implements the SHA-256 cryptographic algorithm in a blockchain system to enhance security and trust in local MSMEs' online transactions. SHA-256 is chosen for its ability to produce unique, permanent, and tamper-resistant hashes. The system adopts a decentralized blockchain model, where transactions are recorded in encrypted, chronologically linked blocks. The testing results show that the SHA-256-based blockchain system functions effectively in maintaining data integrity and preventing manipulation. Black Box Testing confirmed that the system operates correctly from the user's perspective, including login validation, transaction recording, manipulation detection, and transaction history retrieval. White Box Testing validated the internal logic of the system, proving the correct implementation of SHA-256 hashing, block linking, Proof of Work (PoW), and transaction validation mechanisms. All test cases passed successfully, demonstrating that the system is stable, functional, and secure.

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DOI: https://doi.org/10.33387/jiko.v8i3.10606

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