This study develops and evaluates a blockchain–IoT framework for enhancing digital banking security, with a focus on the Nigerian financial ecosystem. Unlike prior works that apply blockchain in generic contexts, this research addresses unique challenges facing developing economies, including weak authentication mechanisms, insider fraud, and systemic vulnerabilities in centralized infrastructures. The framework integrates IoT-based payment processes with blockchain protocols to deliver tamper-proof, real-time transactions, supported by lightweight consensus. Implemented in Python and tested under simulated banking conditions, the model demonstrates stable one-second block intervals, simulated peak throughput exceeding 237,000 transactions per second under controlled execution conditions, and robust handling of diverse transaction values. A comparative evaluation of Proof of Authority (PoA), Proof of Stake (PoS), and Practical Byzantine Fault Tolerance (PBFT) confirms PoA as the most practical for IoT-enabled banking in Nigeria, balancing scalability, energy efficiency, and real-time validation. By situating blockchain within Africa’s digital economy and providing a context-sensitive consensus analysis, this study advances both the theoretical and applied understanding of secure, decentralized payment infrastructures. The findings lay the groundwork for real-world deployment of blockchain-based solutions to strengthen digital banking security and financial inclusion in emerging markets.
Ibrahim et al. (Sun,) studied this question.