The Hybrid Blockchain Model to Increase Data Privacy of Financial Assistance for SMEs

The process of financial assistance for SMEs and the use of funds by SMEs from the government requires a system that can provide transparent and valid information. Conventional systems are unable to offer transparent information as they solely rely on the system maker's validation. Blockchain technology provides transparent and valid information because each transaction will go through peer-to-peer validation by each participant in the blockchain network. Therefore, the government can utilize blockchain technology to bolster the financial aid system for small and medium-sized enterprises (SMEs), as both the SMEs and the government will verify each aid and fund utilization. We use a hybrid blockchain model, combining a private and public blockchain. SMEs use the public blockchain to track the amount of assistance they receive, while the government uses the private blockchain to combine parties. The research employs qualitative methods and literature reviews to examine the mechanism of funding SMEs and the concept of hybrid blockchain. The research output presents a proposed model and simulation results using Hyperledger fabrics. Based on the test results with Hyperledger Fabric, it shows that every transaction related to financial assistance for SMEs must be validated by all nodes on the blockchain network so that the blockchain-based system produces valid and transparent information.