Multi-Stage Encryption and Compression Framework for Privacy-Preserving Digital Transactions

Abstract

This research proposes a hybrid model that brings together Huffman coding technique encoding with a modified Rivest-Shamir-Adleman (RSA)-SHA-2-Advanced Encryption Standard (AES) encryption scheme to boost both the security and efficiency of banking transactions. Building on gaps identified in earlier research particularly in methodology and implementation, the approach emphasizes post-encryption compression of secured data. The system utilizes Advanced Encryption Standard (AES) for data encryption, employs a modified Rivest-Shamir-Adleman (RSA)-SHA-2 algorithm for secure key management, and applies Huffman coding technique encoding to optimize data compression. Developed with JavaScript, PHP, and MySQL, the model was evaluated within simulated banking environments. While the added security layers slightly reduced performance compared to the Advanced Encryption Standard (AES)-Rivest-Shamir-Adleman (RSA)-Huffman coding technique baseline particularly in terms of processing time and storage, the system consistently upheld strong encryption integrity across varying data sizes, as demonstrated by entropy analysis and Avalanche Effect measurements. Based on these results, we recommend further testing of the model across a broader range of transaction volumes by exploring alternative compression techniques, and ensuring compliance with regulatory standards for financial data. Generally, this work represents a meaningful step toward building more secure and resource-efficient frameworks for banking transactions.