Application of Smart Contracts in Blockchain in Financial Risk Control

Abstract

In the application practice of smart contracts in blockchain, smart contracts, as an automatic contract mechanism, can be executed, managed, and verified on the blockchain network. After the smart contract is generated, the protocol can propagate in the form of P2P (Peer-to-Peer) across the entire blockchain network. The malicious transaction trigger event with serial number 1 is illegal fund transfer, and the smart contract response is to refuse execution, triggering a security mechanism with a response time of 1.5 seconds. The malicious transaction trigger event with serial number 1 is asset theft, and the smart contract response is to detect abnormal behavior and freeze relevant accounts, with a response time of 2.0 seconds. This article systematically studies the application of blockchain and smart contracts in financial risk management, providing new ideas and methods for the safe, efficient, and intelligent development of China’s financial industry.