Blockchain-Powered Smart Contracts for Automated Financial Transactions in Decentralized Networks

Abstract

This paper explores the application of blockchain enabled smart contracts to automate financial transactions across a decentralized network. We discuss performance measurements including transaction throughput, gas consumption, security, scalability, and the interoperability of cross-chain. We simulate traditional financial systems and blockchains and compare them in terms of transaction throughput, cost ratios and susceptibility of a smart contract to attacks. Furthermore, we devise the performance of a few types of blockchain platforms related to Ethereum and Binance Smart Chain under different network settings. Security issues, including integer overflow and re-entrancy, are mitigated using formal verification techniques. We also evaluate the impact of cross-chain interoperability in terms of bridges and oracles, with a specific emphasis on the latency and failure rate of the asset swaps. The results illustrate the capability of blockchain-based smart contracts to disrupt financial systems by providing a more efficient, secure, and scalable alternative.