Suppose you want to transfer funds to your client from a bank account opened in any country or state. The usual procedure is for the payee (beneficiary customer) to send a payment instruction to the payer (ordering customer) with the beneficiary's full name (or company name), account number, IBAN and other information necessary to have the transaction completed. The question is, how can the payer check the reliability of the information contained in the payment instruction provided by the beneficiary customer? Who is to guarantee that the beneficiary customer didn't provide his private account number instead of the business one, or that he didn't change his name or company name with the intention of manipulating cash flows?

This information cannot be confirmed by the payer's bank, because the payer's bank doesn't have this information. It can only be confirmed by the beneficiary's bank, but they will not release any of their customer details upon your request. On the other hand, forcing the sender to verify the authenticity of the data by himself every time he initiates a transaction, sooner or later, will result in the imposition of serious errors in the money transfer process that can no longer be corrected. So, what should we do in case we face this situation?

The payer must be able to confirm the legitimacy and validity of the information received before executing the transaction. The payment instruction data must be preserved (as originally certified by the recipient's bank) and must not be subsequently changed, lost, corrupted or misused. We need a fintech solution that guarantees the establishment of a foolproof banking security system and mutual trust between senders and receivers of payments, as well as between clients and banks, thereby reducing the number of errors in the transfer of funds. This can be achieved by combining two innovative approaches that dive deep into blockchain technology. One is Digital Chip Card Technology and the other is Digital Telegram Service. There is a possibility of their wide exploitation in transaction banking and related services such as H2H (Host-to-Host), SWIFT, cash management and trade finance.

Telinov8, also known as Digital Chip Card Technology, or "DCCT" for short, enables devices within the same network to securely store and share sensitive data or other data that requires authentication. DCCT solutions are applicable in all operating systems and on all desktop and mobile devices. Telinov8 provides cryptographic encryption of the transmitted data and prevents it from being modified, lost, corrupted or misused along the way.

The flywheel of Telinov8 technology is a digital asset up to 1MB in size, with an integrated virtual chip. This is called a digital chip card. The "processor" of the virtual chip is powered by artificial intelligence (AI), while the "memory units" are occupied by files, metadata, security tokens and information carriers. When opening a bank account, the client is assigned a personal digital chip card associated with that bank account.

Blockchain is a decentralized database that is shared and synchronized amongst nodes of a computer network and operates without the need for a central authority. Instead of being locked within a single database, as is the case with centralized systems, files and information are diversified across the blockchain and made available to as many computers connected to a common peer-to-peer network as needed. The blockchain ensures that the data stored there is virtually immutable and properly verified. Once saved, the data can no longer be changed or deleted.

Digital telegram service ("DTS") is a blockchain-based system for the exchange of electronic messages in the form of digital telegrams. The data storage technology used to manage digital telegrams is identical to that of DCCT, except that DTS is primarily used to share text messages, files, and information delivered by the messenger directly to the recipient via the Internet. Digital chip card technology ("DCCT") and digital telegram service ("DTS"), together with blockchain technology, aim to provide reliable and secure channels for the transfer of financial information and to prevent its alteration, loss, corruption or abuse along the way. And that is exactly the solution we've been looking for and which we will now explain in more detail.

The virtual chip introduces security tokens, which consist of a hash code, an IP address, a public key, and a timestamp. They are responsible for verifying the authenticity and integrity of the data embedded in the card. In addition to security tokens, the digital chip card contains the following information:

• whether the account holder is a natural or legal person;
• account holder's full name;
• account holder's address;
• account holder's account number/IBAN;
• name of the account holder's bank;
• address of the account holder's bank.

The bank will verify the authenticity of the input data and return the generated digital chip card to its creator (account owner). The creator will download the file, or will receive an e-mail from the bank with the attached file, or will receive a message through the appropriate online service that the bank uses to communicate with its clients. The digital chip card is permanently stored on a remote database server, in the user's bank and on the user's device to which it was downloaded. A unique XML file in [HASH].xml format is also generated, where "hash" matches the hash code contained in the digital chip card as part of the security token data set. This XML file is an important component of the blockchain and an indispensable part of the banking transaction approval process.

With the help of DCCT and DTS technologies, the procedure for sending money is as follows:

• The payer will ask the beneficiary to send him the digital chip card that the beneficiary had received from the bank upon opening his account; the beneficiary can deliver the digital chip card to the payer via a contactless transfer between two desktop or mobile devices, via e-mail, or via one of the messaging apps (Viber, Whatsapp, etc.);
• Meanwhile, the payer will prepare his own digital chip card for use;
• Upon receipt of the user-provided digital chip card, the payer will open the card scanning app in a web browser on his computer, smartphone or tablet;
• The reader is powered by a cloud-based app that manages processes out of anyone's reach and without the possibility of manipulation; first it reads the digital chip card with the payer's data and if the file is technically correct, the content is displayed on the screen and the payer moves on to the next step;
• The reader then reads the digital chip card with the beneficiary's data; if the file is technically correct, the content is displayed on the screen; the payer carefully checks the content and compares it with what he expects to receive from the beneficiary; if the payer suspects that something is wrong, he will withdraw from the transaction; if everything looks fine, he will move on to the next step;
• The payer enters the amount of money he wants to send, the purpose (description) of the payment, the currency code and the SWIFT code (refers to overseas payments) and some other information related to whether the payment is covered in foreign or domestic currency, who is responsible for fees/charges of the banks engaged in the payment transfer (refers to overseas payments), etc.;

Finally, all data is merged and stored in a new, artificially produced single-use digital chip card that contains the following information:

• hash code of the payer (extracted directly from the payer's digital chip card);
• whether the payer is a natural or legal person;
• full name (or company name) of the payer;
• address of the payer;
• account number of the payer;
• name of the payer's bank;
• address of the payer's bank;
• amount of payment;
• purpose of payment;
• SWIFT code (optional, for cross-border payments only);
• currency code (optional, for cross-border payments only);
• payment coverage (optional, for cross-border payments only);
• responsibility for fees/charges (optional, for cross-border payments only);
• some other information related to the transaction, if needed...
• hash code of the payee (extracted directly from the payee's digital chip card);
• whether the payee is a natural or legal person;
• full name (or company name) of the payee;
• address of the payee;
• account number of the payee;
• name of the payee's bank;
• address of the payee's bank.

The payer can now initiate a transaction and retrieve the transactional digital telegram generated on the remote database server after the transaction has been initiated. The transactional digital telegram is sent to the payer's bank to verify the payer's details and then forwarded to the payee's bank to verify the payee's details. Depending on the results of the verification, the transaction will be either executed or rejected. The transaction digital telegram will be stored on the device of the user who initiated the transaction and in the databases of the payer's bank and the recipient's bank. The digital telegram is only temporarily rendered on the remote database server and will be automatically deleted when the user downloads it, leaving no possibility for the file to be misused after the transaction is completed.

As mentioned in the previous chapter, the generated transactional digital telegram is first sent to the payer's bank to verify the payer's data, and then forwarded to the payee's bank to verify the payee's data. Finally, the transaction is either approved or declined. Here are more details on how it actually works:

• The payer's bank checks the security tokens from the transactional digital telegram, extracts the hash code related to the payer, finds the appropriate [HASH].xml in the bank's database and compares the content of the XML file with the content embedded in the transactional digital telegram;
• If everything looks fine, the payer's bank forwards the transactional digital telegram to the payee's bank for further verification;
• The payee's bank checks the security tokens from the transactional digital telegram, extracts the hash code related to the payee, finds the appropriate [HASH].xml in the bank's database and compares the content of the XML file with the content embedded in the transactional digital telegram;
• If everything looks fine, the payee's bank approves the transaction; if an error is found, the transaction is rejected; in both cases, the payee's bank informs the payer's bank of the outcome, and the payer's bank informs the payer himself.

The information contained in the digital chip card and transactional digital telegram is considered 100% accurate and verified as guaranteed by the account holders and the banks themselves. This is what makes the process of transferring funds using DCCT, DTS and blockchain technology uniquely credible, plausible and secure, as the possibility of data alteration, loss, corruption or misuse is drastically reduced.