Azlin Alisa Ahmad, Mat Noor Mat Zain, Nur Diyana Amanina Zakaria
<p>A smart contract is a computer protocol contract of which its innovation rooted from the traditional contract. However, Sharia-compliant transaction necessitates a contract to fulfils all pillars of Islamic contracts in order smart contract can be accepted as an innovation of Islamic contracts. Thus, this paper aims to make a comparison between Islamic contracts and smart contract on blockchain. This paper is a qualitative research by adopting content analysis method to analyze some related topics. The pillars of Islamic contract are compared with the smart contract to ensure whether the smart contract follows the guidelines of Islamic contract or vice versa. The analysis shows that smart contract does not entirely comply with the Islamic principles of a contract. Even though smart contract generally has three pillars of Islamic contract but in details, it does not comply with the Sharia principles. By comparing between the pillars of Islamic contract and smart contract on blockchain, it shows that smart contract on blockchain is not underline with the Islamic contracts pillars. Contracting parties participate in the smart contract does not recognize each other that can be lead to <em>gharar</em>. Meanwhile, every transaction in the smart contract allows prohibited subject matters such as illegal drugs, weapons where as it is not allowed in Islamic contracts transactions. </p>\n\n<p> </p>
The emergence of cryptocurrency has introduced a transformative force in the global financial landscape, challenging the conventional structures of traditional financial markets. This paper explores the dynamic relationship between digital currencies and established financial systems, focusing on areas such as investment behavior, regulatory responses, market volatility, and the evolving role of financial institutions. It highlights how cryptocurrencies, particularly Bitcoin and Ethereum, have begun to influence asset allocation strategies, capital flows, and risk perceptions among investors. Furthermore, the paper examines the integration of blockchain technology in financial services and how its decentralized nature poses both opportunities and threats to conventional banking practices. While cryptocurrencies have opened up avenues for innovation and financial inclusion, their unregulated nature raises concerns regarding market stability and security. This study aims to provide a comprehensive understanding of the implications of cryptocurrency growth for traditional financial markets, suggesting the need for adaptive regulatory frameworks and strategic responses from financial institutions.
The advent of blockchain technology has sparked a revolution in various industries, with a profound impact on financial accounting practices. This review research paper explores the transformative potential of blockchain in reshaping traditional accounting frameworks. By leveraging a decentralized and transparent ledger system, blockchain introduces unprecedented levels of security, efficiency, and accuracy to financial transactions. This paper delves into the key components of blockchain technology, such as distributed ledgers, consensus mechanisms, and smart contracts, elucidating their role in revolutionizing financial accounting. The review critically examines the implications of blockchain adoption for financial reporting, audit processes, and regulatory compliance, shedding light on the emerging challenges and opportunities. Furthermore, the integration of artificial intelligence (AI) in conjunction with blockchain is explored as a synergistic force that amplifies the transformative impact on financial accounting. AI-driven algorithms enhance data analysis, fraud detection, and decision-making processes, augmenting the overall efficiency and reliability of financial information.
The rapid expansion of financial technology (fintech) across international markets has introduced unprecedented innovation in financial services, improving access, efficiency, and user experience. However, this growth also presents significant regulatory challenges for governments and oversight bodies worldwide. Diverse regulatory frameworks, inconsistent cross-border compliance requirements, and evolving fintech business models make it difficult to ensure consumer protection, data security, and financial stability. Emerging issues such as digital currencies, decentralized finance (DeFi), and algorithmic decision-making further complicate the regulatory landscape. This paper explores key regulatory hurdles faced by global fintech ecosystems, including jurisdictional fragmentation, regulatory arbitrage, and the need for agile, technology-aware governance. It also highlights efforts toward international regulatory cooperation and proposes strategies for fostering innovation while ensuring responsible and inclusive financial systems.
The advent of Web 3.0, characterized by decentralized technologies such as blockchain, smart contracts, and decentralized finance (DeFi), is reshaping the global financial ecosystem. India, or Bharat, as it progresses towards becoming a developed economy, stands at a crossroads in its financial evolution. DeFi promises transparency, efficiency, and inclusivity, potentially offering solutions to longstanding issues in India's traditional financial infrastructure, such as limited access to banking services and inefficiencies in cross-border transactions. However, the decentralized nature of Web 3.0 also presents challenges, particularly regarding regulatory oversight, consumer protection, and financial stability. The need for a robust regulatory framework is critical to balance innovation with security. This abstract explores the potential of DeFi to accelerate India's financial inclusion goals while emphasizing the importance of regulatory policies to mitigate risks such as fraud, money laundering, and volatility. By analysing global case studies, existing Indian policies, and the trajectory of Bharat's financial sector, this paper aims to provide insights into how regulators can craft a forward-looking framework for DeFi. The goal is to support innovation while ensuring that India's financial evolution through Web 3.0 is sustainable, secure, and inclusive for all citizens, contributing to its vision of becoming a developed economy.
The emergence of digital financial technology, such as blockchain, cryptocurrencies, and decentralized finance (DeFi) has created new opportunities in the field of financial inclusion, although gender differences are still very strong. The research paper examines the acceptance and effects of Web3 financial tools on the economic empowerment of women, the access and use as well as the financial literacy levels of women in the developed and emerging economies. The research design is a mixed-method study that will involve quantitative data based on blockchain transaction data, the use of digital wallets, and financial inclusion indicators, and qualitative data collection based on structured interviews and focus groups with female users and fintech providers. The results show that there are also a great difference in the adoption: women in technologically developed areas are better equipped with access, financial literacy, and institutional support, and women in resource-deprived regions have challenges with limited internet connectivity, lack of digital literacy, and socio-cultural constraints. In spite of such difficulties, Web3 technologies can contribute to making women more financially independent through facilitating inexpensive and safe transactions, decentralized savings, and having access to alternative credit structures. In addition to this, the user interaction also indicates subtle preferences: digitally literate users prefer convenience, transparency, and privacy, whereas the less digitally equipped ones focus on trust, education, and community support. Strategic interventions presented in the paper, such as female-sensitive policy models, specific financial literacy interventions, and onboarding strategies driven by communities, are also suggested to facilitate fair involvement in the Web3 ecosystem. Through the identification of both prospects and obstacles to digital finance that is inclusive of gender, this paper illustrates that Web3 can be used as an empowering opportunity in the economy and financial sustainability. The findings can be added to the increasing body of research on digital finance and presented as evidence-based policies to help policymakers, fintech developers, and advocacy organizations to enhance the gender gap in digital financial technology adoption.
The recent emergence of blockchains may be considered a critical turning point in organizing collaborations. We outline the historical background and the fundamental features of blockchains and present an analysis with a focus on their role as governance mechanisms. Specifically, we argue that blockchains offer a way to enforce agreements and achieve cooperation and coordination that is distinct from both traditional contractual and relational governance as well as from other information technology solutions. We also examine the scope of blockchains as efficient governance mechanisms and highlight the tacitness of the transaction as a key boundary condition. We then discuss how blockchain governance interacts with traditional governance mechanisms in both substitutive and complementary ways. We pay particular attention to blockchains’ social implications as well as their inherent challenges and limitations. Our analysis culminates in a research agenda that explores how blockchains may change the way to organize collaborations, including issues of what different types of blockchains may emerge, who is involved and impacted by blockchain governance, why actors may want blockchains, when and where blockchains can be more (versus less) effective, and how blockchains influence a number of important organizational outcomes.
Carlos Molina-Jiménez, Hazem Danny Al-Nakib, Linmao Song, Ioannis Sfyrakis · 5 authors
We suggest the re-introduction of bartering to create a cryptocurrencyless, currencyless, and moneyless economy segment. We contend that a barter economy would benefit enterprises, individuals, governments and societies. For instance, the availability of an online peer-to-peer barter marketplace would convert ordinary individuals into potential traders of both tangible and digital items and services. For example, they will be able to barter files and data that they collect. Equally motivating, they will be able to barter and re-introduce to the economy items that they no longer need such as, books, garden tools, and bikes which are normally kept and wasted in garages and sheds. We argue that most of the pieces of technology needed for building a barter system are now available, including blockchains, smart contracts, cryptography, secure multiparty computations and fair exchange protocols. However, additional research is needed to refine and integrate the pieces together. We discuss potential research directions.
An economic analysis of what distributed ledgers can do, examining key components and discussing applications in both developed and emerging market economies. Distributed ledger technology (DLT) has the potential to transform economic organization and financial structures. In this book, Robert Townsend steps back from the hype and controversy surrounding DLT (and the related, but not synonymous, innovations of blockchain and Bitcoin) to offer an economic analysis of what distributed ledgers can do and a blueprint for the optimal design and regulation of financial systems. Townsend examines the key components of distributed ledgers, discussing, evaluating, and illustrating each in the context of historical and contemporary economies, reviewing featured applications in both developed economies and emerging-market countries, and indicating where future innovations can have large impact. Throughout, Townsend emphasizes the general equilibrium impact of DLT innovations, the welfare gains from these innovations, and related regulatory innovations. He analyzes four crucial components of distributed ledgers—ledgers as accounts, e-messages and e-value transfers, cryptography, and contracts—assessing each in terms of both economics and computer science, and forges some middle ground. Relatedly, Townsend highlights hybrid systems in which some of these components allow useful innovation while legacy or alternative pieces deal with the problem of scale. The specific applications he analyzes include an intelligent financial automated system that provides financial services to unbanked and under-banked populations, and cross-border payments systems, including financial systems that can integrate credit and insurance with clearing and settlement. Finally, Townsend considers cryptocurrencies, discussing the role and value of tokens in economies with distributed ledger systems. The open access edition of this book was made possible by generous funding from Arcadia – a charitable fund of Lisbet Rausing and Peter Baldwin.
Xiao Fan Liu, Xin-Jian Jiang, Si-Hao Liu, Chi K. Tse
Cryptocurrencies gain trust in users by publicly disclosing the full creation and transaction history. In return, the transaction history faithfully records the whole spectrum of cryptocurrency user behaviors. This article analyzes and summarizes the existing research on knowledge discovery in the cryptocurrency transactions using data mining techniques. Specifically, we classify the existing research into three aspects, i.e., transaction tracings and blockchain address linking, the analyses of collective user behaviors, and the study of individual user behaviors. For each aspect, we present the problems, summarize the methodologies, and discuss major findings in the literature. Furthermore, an enumeration of transaction data parsing and visualization tools and services is also provided. Finally, we outline several future directions in this research area, such as the current rapid development of Decentralized Finance (De-Fi) and digital fiat money.
Case law is the term that refers to reports of past court decisions. It is considered an essential source of law, vital for legal professionals. Existing case law services are currently centralized, with an entity having complete control over the data and often charging fees for its access and other adding value services. This paper attempts to leverage the potential of blockchain technology in order to develop a public and decentralized platform that allows the submission of court decisions in a decentralized database and employs a network of curators who offer their validation, classification, and evaluation. Specifically, we design, analyze and implement AnyCase, a proof-of-concept prototype system on the Ethereum platform. We focus on the establishment of a sybil-resistant voting protocol used for reaching agreement and the development of a tokenized economy that incentivizes participation. Our preliminary analysis indicates that, besides being decentralized, AnyCase has the potential to compete with existing centralized systems in several other aspects.
The article concerns selected issues regarding smart contracts from the perspective of private law, in particular the concept of a contract, determination of its content, principles of performance and breach of an obligation. The legal analysis jest supplemented with technological aspects that show the essence and mechanism of operation of Blockchain, smart contracts, Ethereum. The legal doctrine generally referred to the technological aspects of smart contracts, attempting to include them in the traditional contract law system. The article contends that this is the wrong approach. The authors argue that a smart contract as such is not a contract, but a computer program (code) that can be a manner of concluding a contract and at the same time self-executing it. The qualification of a smart contract as a method of conclusion a contract, and not the contract itself, determines the conclusions on other aspects of concluding the contract, its interpretation, etc. Considerations concerning the model of a self-executing contract are formulated around this thesis. This model determines the proposals for regulation of the principles of performance of the contract, the consequences of the breach of contract and others areas of concern.
This study examines the potential risk reducing benefits of Bitcoin against systemic risk in 28 countries from 2011-2020. The results indicate that Bitcoin provides a safe haven in times of extreme financial market volatility and during periods of financial crisis.
Cryptocurrencies are decentralised virtual currencies, using blockchain technology to process peer-to-peer electronic payments. In 2009, the first successful cryptocurrency, Bitcoin, was established. This article discusses concepts of cryptocurrency, its relevance in the financial sector, its associated risks and establishes whether regulatory interference is necessary in order to combat money laundering using cryptocurrency. Currently, cryptocurrencies remain unregulated in South Africa. The article concludes that regulatory intervention is necessary and that cryptocurrencies should be integrated into relevant existing legislation.
In this study, digital transformation applications in the business world and in finance field are discussed in detail. The current and potential effects of digitalization on a wide spectrum from operational finance to portfolio management are examined. Advantages and disadvantages of digital transformation have been examined in detail and a general evaluation has been made about the ongoing process. One of the most important milestones of digitalization in the financial world is cryptocurrency. It is totally based on blockchain technology that eliminates public authority intervention and intermediaries by establishing peer to peer (P2P) transactions via the decentralized platform. In particular, the possible effects of increasing digitalization efforts on the financial environment after Covid-19 are interpreted.
The development of technology today is used as a benchmark in the advancement of the industrial world where the development of technology has influenced various aspects in the life of today's society. Smart contracts as one form of blockchain technology that resembles a conventional contract can be used to bind agreements between one party and another. One difference between a smart contract and a conventional contract is the smart contract that is stored in the blockchain. With the presence of smart contracts on the blockchain has become one of the most sought-after technologies, because the number of users is high enough for each transaction within the company. In this case various features of smart contracts applications in various worlds, ranging from financial services, life sciences, energy resources and media voting. Smart contracts still pose a lot of challenges that overwhelm the interaction of some Parties, such as users, developers, and organizations built on smart contracts. Smart contracts are essentially a very effective source of problem solvers, where smart contracts on the blockchain make it easy to maintain data security, and save costs and time. In addition, in the absence of third parties strongly minimizes the fraud that is often done by irresponsible parties, this prevents conflicts between parties. Prone to cases of loss of a document is generated because there is no secure storage media. The advent of smart contracts on the blockchain is expected to be a solution to tackle most of the world's commercial and bureaucratic systems.
The terms decentralized organization and distributed organization are often used interchangeably, despite describing two distinct phenomena. I propose distinguishing decentralization , as the dispersion of organizational communications, from distribution , as the dispersion of organizational decision-making. Organizations can be distributed without being decentralized (and vice versa), and having multiple management layers directly affects only distribution – not decentralization. This proposed distinction has implications for understanding the growth of digital platforms (e.g. amazon.com ), which dominate the global economy in the 21 st century. While prominent platforms typically use machine learning as their core technology to transform inputs (e.g. data) into outputs (e.g. matchmaking services), blockchain has emerged as an alternative technological blueprint. I argue that blockchain enables platforms that are both decentralized and distributed (e.g. Bitcoin), whereas machine learning fosters centralized communications and the concentration of decision-making (e.g. Facebook Inc.). This distinction has crucial implications for antitrust policy, which, I contend, should shift both its analysis and its target of action away from the corporate level and focus instead on the data level. Based on this essay’s framework, I make several predictions regarding the future of competition between centralized and decentralized platforms, the evolution of government regulation, and broader implications for managers in the digital economy and for the business schools charged with their education. I conclude with reflections on the opportunity to revive cybernetic thinking for preventing a dystopian future dominated by a handful of platform behemoths.
Trade finance helps businesses deal with abnormal cash flows whilst managing counterparty risk and enhancing confidence in commercial transactions. It also allows parties to overcome trust barriers that may inhibit commercial activity in both a domestic and international commercial context. Globally, particularly among micro, small and medium enterprises (MSMEs), there exists a significant and widening unmet demand for documentary finance. Securing trade finance is laborious and time-consuming. For MSMEs, the trade finance application process alone, can be an insurmountable barrier that usually ends in rejection. By its nature, trade finance arrangements engage with decentralized stakeholders and diffused information sources across supply chains. Issuers and underwriters of trade finance instruments are required to draw on disparate elements of information, not merely during the application phase, but indeed throughout the life of a transaction. Blockchain technology is similarly decentralized and can capture information in a secure, transparent and immutable manner potentially improving and reinvigorating the trade finance space. As Qatar embarks on a strategy of widening its economic base away from a singular reliance on the hydrocarbon fuel sector, the introduction of blockchain technology holds the potential to overcome the transactional friction associated with trade finance. A more efficient and accessible trade finance sector will ultimately enhance the competitiveness of MSMEs whilst simultaneously fostering the growing FinTech sector in Qatar.
Distributed ledger technologies are emerging as important tools that can positively impact almost all major industries and activities in our society. They are increasingly used in various supply (value) chain applications including financial, governance, regulations, health, logistics, and other industrial sectors. In this letter, we are presenting various ongoing work related to different distributed ledger technologies and their applications in postal sector. In particular, we will highlight some of the innovations in the inclusive financial services for the underbanked and unbanked populations using distributed ledger technologies.
e-Governance is a medium to offer various services to citizens through a web portal, that exists in many countries nowadays. The existing e-Governance technology is a vast, centrally managed database and a set of applications that connect to it via web interfaces. Despite the modernisation of services, it remains with the lack of transparency. Thus, the existing infrastructure of e-Governance paves the way for corrupt practises by the bureaucrats. e-Governance needs a powerful underlying technology which doesn't provide any way to allow tampering of the record and which in turn eliminates corruption. In this paper, we took land registration as a use-case for building e-Governance by keeping Blockchain as an underlying technology, to put off the corrupt practices and to bring transparency. Once transactions in land registration added to the Blockchain, it is immutable as it is cryptographically secured. Besides, the blockchain technology is secured as the ledger is distributed over the network. If a hacker wants to modify the ledger, he needs to hack every node in the blockchain network. Hyperledger Fabric, a permissioned Blockchain adopted for implementation and Hyperledger Caliper for performance analysis with these evaluation metrics such as throughput, latency and execution time.
Sarah L. Frazar, Rustam Goychayev, Alysha Randall, Cliff Joslyn · 6 authors
This document summarizes the findings from the team’s evaluation of applying DLT to transactions taking place inside and outside of a joint technology development and transfer agreement. As part of this examination, PNNL focused on addressing whether DLT could be used to promote civil nuclear cooperation without raising proliferation concerns.
Blockchain will be the future of accounting education. Triple entry accounting system is here, and shared ledger has been considered. From the shared ledger different parties can access transactions. As our discussion reveals that distributed ledger, Smart contract and Blockchain are three important elements in the triple entry accounting system. As a result, blockchain technology is helping the upgrading the process of education system. Blockchain technology is a peer to peer communication that allows participants to secure the settlement of transactions, achieve the transactions and transfer of assets at low cost. With certain advantages there are disadvantages too. Based on performance and acceptance, it is clear that in future the implication of blockchain technology would be developed. The concept of triple accounting has introduced the new way of accounting work replacing accounting standard formula. The blockchain technology eliminates the involvement of third party, maintain transparency and charges low transaction cost. It will save money and time of people as it is secure and due to decentralization, it is not controlled by one single entity. Due to the decentralization, every user of the network can see the file. So, blockchain should the part the Accounting Education in future.
The recurrence of global financial crisis catalysed the advancement of the financial technology which in this study proposes conceptual model for Cryptocurrency based Islamic financing Instrument. The paper is an attempt in proposing the conceptual model of Unified Theory of Acceptance and Use of Technology (UTAUT) to determine factors influencing the adoption which derived from the literature review. Thus, the model proposes a direct relationship between variables of FC and BI and maintaining moderating factors of GEN and AGE while USE, EXP and VOL variables were removed. The paper expected to contribute to the development of a theoretical knowledge of UTAUT theory that expand the current limited studies on adoption of cryptocurrency based Islamic financing. The study also provides contribution to financial technology firms, academicians, regulators and practitioners on future work extension in applications in relation to Islamic instruments model adoption with end client. Nevertheless, the proposed conceptual model is set forth as the underlying approach for future empirical study validation in keeping with the technology momentum.