ChitChain: a blockchain-based technology framework for trust enablement in decentralized chit funds

Chits funds are typically operated among a trusted network of people, by a foreman, completely relying on the trust and transparency of the transactional data audited through the network. The cost involved in this ledger keeping or audit procedures for ensuring trust and transparency is the major institutional overhead for running a chit fund. This paper proposes a transparent platform based on distributed ledger technology termed Blockchain as a Service (BaaS) for setting up the ChitChain infrastructure. The service providers and the end-users (customers) will be provided with client interfaces for the secured access methods to the system. As the notion of trust will be taken from the institution to the tamper-proof platform, the approach discussed in this paper will propose a decentralized finance model that enables higher financial inclusion. The auditable platform provides insights to the stakeholders regarding the transactions and operations of the chit fund. This work proposes a novel operation model for setting up a chitty, a fair jury selection protocol for decentralized management, and an efficient foreman and end-user onboarding process.