This dissertation examines the financial dynamics of emerging digital assets by analyzing three pivotal domains: crypto futures, non-fungible tokens (NFTs), and the metaverse economy. Through empirical investigations and advanced modeling, it contributes to understanding how digital asset markets function, what drives their valuation, and how their future trajectories can be assessed. The first study explores price discovery between spot and futures markets for Bitcoin and Ether. By applying information share, component share, and information leadership share methodologies to high-frequency data, the analysis investigates whether futures markets dominate in incorporating new information or whether spot markets continue to lead. The findings reveal distinct dynamics between Bitcoin and Ether, with robustness checks confirming the persistence of futures-led price discovery in certain conditions, carrying implications for traders, exchanges, and regulators. The second study investigates determinants of NFT prices using an exploratory approach. Drawing on a comprehensive dataset, it tests how factors such as rarity, artist reputation, collection effects, and market sentiment influence valuation. By applying econometric and statistical modeling, the study uncovers that while scarcity and creator visibility play significant roles, speculative dynamics and network effects often dominate, leading to high volatility and difficulty in establishing intrinsic value. The third study addresses the question “Is the metaverse dead?” by focusing on Decentraland as a case study. Using Seasonal ARIMA and Log-Periodic Power Law Singularity (LPPLS) models, the research evaluates both the short-term forecasting accuracy and the existence of speculative bubbles in metaverse-related assets. The results indicate limited sustained user growth and significant bubble-like behavior in virtual land prices, highlighting the challenges of aligning metaverse narratives with economic realities. Together, these three essays provide a multifaceted view of digital asset markets. They demonstrate that while innovations such as crypto futures, NFTs, and metaverse platforms have transformed financial ecosystems, they remain highly speculative, vulnerable to bubbles, and subject to behavioral drivers beyond fundamental valuation. The dissertation offers theoretical contributions to financial economics and practical insights for investors, policymakers, and technologists navigating the uncertain terrain of digital asset markets.
Tracking the evolution of smart contracts is challenging due to their immutable nature and complex upgrade mechanisms. We introduce EvoChain, a comprehensive framework and dataset designed to track and visualize smart contract evolution. Building upon data from our previous empirical study, EvoChain models contract relationships using a Neo4j graph database and provides an interactive web interface for exploration. The framework consists of a data layer, an API layer, and a user interface layer. EvoChain allows stakeholders to analyze contract histories, upgrade paths, and associated vulnerabilities by leveraging these components. Our dataset encompasses approximately 1.3 million upgradeable proxies and nearly 15,000 historical versions, enhancing transparency and trust in blockchain ecosystems by providing an accessible platform for understanding smart contract evolution.
Ilham Qasse, Isra M. Ali, Nafisa Ahmed, Mohammad Hamdaqa · 5 authors
The immutability of smart contracts on blockchain platforms like Ethereum promotes security and trustworthiness but presents challenges for updates, bug fixes, or adding new features post-deployment. These limitations can lead to vulnerabilities and outdated functionality, impeding the evolution and maintenance of decentralized applications. Despite various upgrade mechanisms proposed in academic research and industry, a comprehensive analysis of their trade-offs and practical implications is lacking. This study aims to systematically identify, classify, and evaluate existing smart contract upgrade mechanisms, bridging the gap between theoretical concepts and practical implementations. It introduces standardized terminology and evaluates the trade-offs of different approaches using software quality attributes. We conducted a Multivocal Literature Review (MLR) to analyze upgrade mechanisms from both academic research and industry practice. We first establish a unified definition of smart contract upgradeability and identify core components essential for understanding the upgrade process. Based on this definition, we classify existing methods into full upgrade and partial upgrade approaches, introducing standardized terminology to harmonize the diverse terms used in the literature. We then characterize each approach and assess its benefits and limitations using software quality attributes such as complexity, flexibility, security, and usability. The analysis highlights significant trade-offs among upgrade mechanisms, providing valuable insights into the benefits and limitations of each approach. These findings guide developers and researchers in selecting mechanisms tailored to specific project requirements.
This paper explores decentralized finance (DeFi), a fast-growing area powered by blockchain technology that offers a new alternative to traditional financial systems. DeFi removes the need for intermediaries like banks, making transactions more transparent, accessible, and often cheaper. This shift not only reduces costs but also helps improve financial access, particularly for people who are underserved by traditional banking systems. Key elements of DeFi, such as smart contracts and oracles, play a central role in automating processes and enabling peer-to-peer exchanges without needing middlemen. Despite its advantages, DeFi faces several challenges. Smart contracts can have security vulnerabilities, oracles may not always provide accurate data, and there is little consumer protection in place, which raises risks for users. Furthermore, DeFi's decentralized and often anonymous structure creates regulatory difficulties, especially when it comes to complying with anti-money laundering (AML) and know-your-customer (KYC) standards, which are crucial for ensuring financial safety and preventing illegal activities. This paper examines these issues and proposes potential solutions, such as decentralized oracle networks, regulatory tools embedded within DeFi platforms, and improved scalability techniques. These solutions aim to enhance DeFi's security while maintaining its core decentralized benefits. The paper concludes by discussing the future of DeFi, stressing the importance of balanced regulations that protect users without stifling innovation. Ultimately, DeFi holds the potential to reshape global finance, making it more inclusive, efficient, and accessible.
Prof. Pritesh Patil, Pranav Dhote, S.S. Kulkarni, Ketan Agrawal
Modern interconnected society creates ongoing challenges to charitable giving because donors need greater assurance of transparency and financial accountability. A new Ethereum-based solution from our research removes intermediaries by establishing an application dedicated to charitable activities. The DApp provides an integrated system for traditional offers and conditional funding structures which operates on blockchain technologies at base level. A framework of Solidity smart contracts connects with React.js frontend components and Ethers.js implements the blockchain communication protocols to deliver a smooth donor transaction process. The platform features milestone-based withdrawals that functions to distribute crowdfunded money after specific campaign targets have been reached thus building transparent reporting. The system gives contributors complete control between funding registered organizations directly and specific projects where each financial transaction is recorded permanently on the blockchain ledger. The unbending nature of blockchain as a record system provides historic visibility for all charitable transactions. Through distributed ledger technology implementation our framework provides donors both simple donation processes and a modern model for reliable philanthropic activities which allow full monitoring of every charitable contribution.
Swiss banks are at a pivotal moment as digital assets gain traction, presenting both challenges and opportunities. This study examines how Swiss banks can leverage their internal resources and capabilities to establish a competitive advantage in the digital asset ecosystem. Using the Resource-Based View and the VRIO (Value, Rarity, Imitability, and Organization) framework, this study investigates the strategic importance of key services such as custody, staking, and tokenization. Drawing on expert interviews with Swiss banking leaders, this research identifies these services as vital for maintaining Switzerland’s financial leadership. Findings suggest that Swiss banks’ established reputation for trust, combined with regulatory clarity under the Distributed Ledger Technology Act, creates a strong foundation for digital asset adoption. While digital asset custody services address the growing demand for security, tokenization presents significant growth potential, particularly in real-world asset markets. This study concludes that Swiss banks can sustain their competitive edge by investing in blockchain expertise, fostering fintech partnerships, and enhancing educational initiatives. By combining traditional banking strengths with innovative digital asset services, Swiss banks are well positioned to capitalize on this evolving financial landscape.
Milad Shojaiyan, sona bairamzadeh, Abbas Ali Hajikarimi
Objective: As a nascent financial technology, cryptocurrencies are experiencing growth, development, and adoption across multiple economic sectors. This study aimed to identify the essential Iranian stakeholders in the field of cryptocurrencies and to assess their behavior. The findings are intended to provide policymakers with valuable insights that will assist them in formulating strategic plans and establishing a structured framework for the nation's cryptocurrency industry.Method: The analysis of cryptocurrencies poses challenges due to the innovative and uncertain nature of several ideas, the involvement of multiple players, and the influence of diverse political, economic, social, and technical variables. Consequently, quantitative approaches alone may not provide a full understanding of this topic. The study paradigm is interpretive, employing a qualitative approach, content analysis technique, and stratified analysis of the causes.Results: Significant findings have been identified in the private three-level patterns of actors and activists in the field of cryptocurrency in Iran, and in the first tables of each of them, a three-level statement and analysis for the communication between the actors has been presented.Conclusions: The results obtained in this research show the reasons for the creation of the current environment governing the cryptocurrency industry in Iran, which shows the need to compile laws and regulations in the field of cryptocurrency and draw a framework for the activities of actors in this field, in order to develop this industry in the country and benefit the country from the advantages of cryptocurrencies are essential.
Agriculture remains the backbone of many economies, yet inefficiencies in financial access, supply chain governance, and transaction transparency continue to hinder its full potential. Smallholder farmers, who constitute the majority of agricultural producers globally, often face barriers such as limited credit availability, lengthy payment cycles, high transaction costs, and dependency on multiple intermediaries. These constraints perpetuate cycles of debt and reduce overall productivity. The advent of blockchain technology, particularly smart contracts, has the potential to transform agri-finance and supply chain ecosystems by introducing automation, transparency, and trustless agreements. Smart contracts, executed without intermediaries, can enforce payment settlements, credit disbursement, and delivery confirmation in a secure, immutable, and real-time manner. This study investigates the integration of smart contracts into agricultural finance supply chains through a multi-layered approach combining literature synthesis, statistical analysis, and simulation modeling. The findings reveal that smart contracts can reduce transaction costs by up to 35%, cut settlement time from weeks to mere minutes, and lower default risks by nearly 50%. Simulation-based experiments demonstrate enhanced resilience in supply chains by reducing disputes and fraud while fostering greater access to microfinance and insurance services. The study further emphasizes that smart contracts are not merely technological add-ons but strategic enablers of inclusive financial ecosystems that empower marginalized farmers, enhance trust among stakeholders, and facilitate sustainable agri-value chains. However, scalability, regulatory compliance, and digital literacy emerge as critical challenges requiring coordinated policy and infrastructure interventions. This research contributes to the discourse on agricultural digitalization by positioning smart contracts as a cornerstone technology for future-ready, efficient, and equitable agri-finance supply chains.
Blockchain technology revolutionizes the financial sector and brings unprecedented transparency, efficiency, and security.Its decentralized and immutable nature holds fantastic potential in light of the green finance domain to provide full transparency and accountability.The purpose of this paper is to explore the multidimensional impact blockchain solutions have on transparent and sustainable financing practices.This would make easy all the funds going into a project green because it cuts across the risks of fraud and mismanagement.Blockchain technology can also make easier the smart contracts that deal with the loan approvals and disbursement of funds so that funding would be based on predefined ESG criteria.Moreover, blockchain will also allow real-time monitoring and reporting of project outcomes that may enable stakeholders to get an accurate measurement of the environmental impact of the project.Blockchain innovates carbon credit trading in that its basic mechanism to cut down on emissions allows for the secure and transparent tracking of transactions.It excludes risks about double counting, thereby enhancing market trust and participation.The decentralized finance, DeFi, built on blockchain unlocks further accessibility to green investments that were hitherto restricted to small-scale investors vis--vis large-scale sustainable projects.Despite tremendous headwinds in terms of energy consumption and regulatory barriers, the tide of progress on advances of green blockchain protocols and positive policy reinforcement is helping overcome those challenges.It concludes that blockchain is an enabling factor which helps make financing greener and more transparent, not only for a more sustainable but also accountable financial ecosystem.Therefore, it is from these all-rounded interests of governments, businesses, and technology providers that collaboration work would be realized in driving the full potential toward a greener future.
This article examines the regulatory approaches of Hong Kong and the United Kingdom (UK) towards cryptocurrencies , highlighting their distinct regulatory philosophies and frameworks. Hong Kong has adopted a comprehensive and proactive regulatory approach, creating a dual-licensing regime for virtual asset trading platforms covering security and non-security tokens and tailoring the existing licensing framework under the Securities and Futures Ordinance to risks in managing and distributing portfolios that invest in virtual assets. This measured approach prioritises investor protection, market integrity, and financial crime prevention while fostering an innovation-friendly environment. Conversely, the UK has taken a conservative stance, integrating cryptocurrency regulation into existing financial systems and prioritising stability, consumer protection, and control over speculative risks. The UK’s framework emphasises Anti-Money Laundering and Counter-Terrorism Financing compliance, registration for crypto-related activities, and restrictions on high-risk products for retail investors. Through comparative analysis, this article illustrates how both jurisdictions balance regulatory oversight with financial innovation and how their regulatory strategies reflect their economic and financial priorities. The findings suggest that Hong Kong’s flexible, forward-looking approach, characterised by dedicated licensing, proactive regulation, and tailored investor protection, positions it as an agile player in the evolving crypto landscape. In contrast, the UK’s framework leans heavily on stability and consumer safeguards. Ultimately, Hong Kong emerges as a rising Asian crypto hub, embracing growth and innovation, while the UK focuses on reinforcing its regulatory defences. This comparison sheds light on how regional priorities shape cryptocurrency regulation, offering insights into the broader global regulatory landscape.
Blockchain and Distributed Ledger Technology (DLT) have emerged at once to transform various industries through revolutionary innovations that secure transactions and develop smart contracts as well as detect and prevent fraud. Blockchain technology serves the purpose of this study to better secure digital transactions and render them more transparent while also achieving greater efficiency. Blockchain protects records from tampering because of its decentralized structure and unalterable properties so organizations achieve reduced risk of fraud and unauthorized changes. Smart contracts act as automated self-executing agreements which perform predefined rules to minimize transaction needs of intermediaries thus reducing operational costs The research addresses implementation barriers of blockchain adoption including the challenges related to scalability and regulatory challenges in addition to energy consumption issues. This paper presents investigative research about blockchain and DLT using case examples to show their capability for generating economic innovation while promoting digital integrity in modern digital markets
Islamic finance has evolved to address various adverse effects associated with capitalism and to establish a distinctive economic framework. However, a review of its nearly 50-year history reveals that Islamic finance was not developed solely from Islamic doctrine. Instead, it has often engaged with capitalism by selectively adopting capitalist institutions, functions, and products to facilitate its growth. This study examines the evolution of Islamic finance within the context of its interaction with capitalism, particularly through the development of Islamic financial products. Although Islamic finance has experienced significant growth in the 21st century, its pursuit of expansion has occasionally resulted in a loss of originality, leading to criticism for its assimilation into capitalist structures. In response to the criticism, Islamic finance is redefining its identity by adopting new practices, especially considering the emerging post-capitalist trends and the evolving dynamics of global capitalism in the early 21st century. One of the pioneering practices is to collaborate with emerging global financial practices driven by FinTech. The collaboration of Islamic finance with FinTech can be seen as a return to its foundational ideals of decentralization and traceability. However, it goes beyond mere reclamation. By collaborating with FinTech to develop an alternative financial system, Islamic finance has transformed from a mechanism for socioeconomic development based on Islamic principles into a global force seeking a better future for all. The knowledge produced by Islamic finance has thus become a universal intellectual asset, no longer confined to the Muslim community. This flexibility and universality of Islamic finance are its defining characteristics. As the global future remains uncertain, Islamic finance will likely endure by leveraging its flexibility and universality. In this context, Islamic finance may take an essential first step towards realizing a post-capitalist society.
A blockchain is a trustless system in an environment populated by untrusted peers. Code deployed in blockchain as a smart contract should be cautious when invoking contracts of other peers as they might introduce several risks and unexpected issues. This paper presents an information flow-based approach for detecting cross-contract invocations to untrusted contracts, written in general-purpose languages, that could lead to arbitrary code executions and store any results coming from them. The analysis is implemented in GoLiSA, a static analyzer for Go. Our experimental results show that GoLiSA is able to detect all vulnerabilities related to untrusted cross-contract invocations on a significant benchmark suite of smart contracts written in Go for Hyperledger Fabric, an enterprise framework for blockchain solutions.
Smart Contracts are the central piece of Ethereum and other compatible blockchains.Their role is to build trusted functionality that unknown parties can interact with.However, their value proposition can be undermined by different security exploits.In many cases, vulnerabilities are overlooked not due to neglect but due to a systematic approach in the review process.This paper aims to appeal to existing frameworks for understanding the business context and provide standardized thinking on auditing smart contracts.The power of a framework lies in the fact that it ensures that auditors do not overlook critical aspects of their vulnerability.
The blockchain based smart contracts allow the creation of peer-to-peer lending in a decentralized finance model called DeFi. While Aave, Compound, and MakerDAO make it easier to gain access to capital and do away with middlemen, security breaches are highly likely to occur. This study analyzes the smart contract vulnerabilities such as reentrancy attacks, oracle manipulation, flash loan exploits, are systematically highlighted and their impact on projects in the market. Furthermore, it completes assessment beyond the security focus of liquidity volatility, regulatory uncertainty and fragmented risk management framework. A systematic literature review was adopted in the study with peer reviewed journal, industry report as well as case studies of past DeFi exploits. The key vulnerabilities, risk assessment methods, and mitigation frameworks are dealt as a theme. According to findings, although smart contract security has improved, DeFi is still very prone to exploitation for the lack of centralized oversight and standardised security measures. The study also brings our attention to the fact that risks in smart contract need continuous smart contract audits, formal verification schemes, and decentralized insurance mechanisms as well as regulatory collaboration. For the sustainable growth of DeFi lending platforms, such a balance should be made possible between technological security measures and improved governance and regulatory frameworks. The increased security mechanisms will increase the user trust and make decentralized lending an alternative to traditional financial systems.
This proposal outlines an innovative strategy to integrate Web 3.0 technologies — specifically Non-Fungible Tokens (NFTs) — into Clash of Clans. By enabling players to own unique NFT-based avatars with special superpowers, Supercell can tap into the rapidly expanding blockchain gaming economy. This model would not only enhance player engagement and loyalty but also create new and sustainable revenue streams through NFT sales, royalties, and marketplace transactions.
This study examines the adoption and use of blockchain technology as a proactive tool against white-collar crimes in Ghana, using the Technology Acceptance Model (TAM) as a framework. A survey of professionals from regulatory bodies, financial institutions, and anti-corruption agencies was conducted to gather quantitative data. The analysis focused on key TAM constructs—Perceived Usefulness (PU), Perceived Ease of Use (PEOU), Attitude Toward Use (ATU), and Behavioral Intention (BI)—to evaluate their impact on Actual System Use (AU). Findings indicate that PU and PEOU significantly influence BI, while ATU and BI strongly affect AU. External factors, such as regulatory frameworks and technological infrastructure, had limited influence, underlining the importance of perceived utility and ease of use in driving blockchain adoption. This research provides critical insights for policymakers and organizations, highlighting the need to promote positive perceptions of blockchain to encourage its adoption in anti-corruption initiatives. It uniquely assesses Ghana’s readiness for blockchain integration in combating corruption, addressing gaps in the literature on technology adoption in less regulated environments. The study offers actionable recommendations for enhancing transparency, accountability, and the efficacy of anti-corruption efforts through blockchain technology.
M. Mohanapriya, S. Eswarapasadh, Dinu Karthik P., Franklin Jack R.
The evolution of digital transactions has revolutionized financial systems, leading to more secure and efficient payment methods. Blockchain technology ensures decentralized, immutable, and transparent transactions, eliminating the need for intermediaries. This study explores a Python-based implementation of digital money transactions using blockchain, demonstrating the efficiency, security, and reliability of the system. The proposed model is implemented using Flask, Hashlib, and JSON for transaction validation and block verification. The experimental results highlight the effectiveness of blockchain in preventing double-spending and fraud. The project "Digital Money Transaction Using Blockchain" aims to develop a secure, transparent, and decentralized system for digital financial transactions using blockchain technology. The solution leverages Python's versatility to implement a blockchain that ensures immutability, transparency, and real-time verification of transactions. This project highlights the potential of blockchain to revolutionize digital finance by providing a secure and reliable infrastructure for transactions, minimizing intermediary costs, and fostering trust in financial systems.
The modern global financial environment faces a complex combination of requirements associated with ensuring systemic solvency while preventing the use of banks as conduits for illegal financial transactions. The current paper focuses on evaluating the capacity of modern regulatory standards for addressing these interconnected challenges. While modern legislation and regulatory approaches have reached a new level of sophistication and standardization, the dynamic nature of innovations in the field of decentralized finance integrate specific examples of Explainable AI (XAI) tools like SHAP values or Grad-CAM that regulators are currently using to improve transparency in decentralized finance. A qualitative-comparative methodology is employed for exploring the impact of strict enforcement of financial standards on the sustainability of the banking sector. Using case studies drawn from some of the world's largest economies, such as the EU, the US, and India, the study finds that despite the positive impact of regulations on the core of the global economy (e.g., through enhancing the financial cushioning of banks), there is evidence that the displacement effect has occurred, which means that risks and illegal activities continue to be relocated to the shadow economy. From the policy implications, a shift from a response-oriented and rule-based approach to one that is proactive and intelligence-based, emphasizing globalization and integration, becomes evident. For future regulation, there is a need for the coverage to be extended to non-bank financial institutions as well as dealing with the paradox of compliance whereby escalating costs have not yet translated into less global money laundering.
The rapid growth of Fintech has driven the adoption of blockchain technology for secure, efficient, and tamper-proof digital transactions. However, existing blockchain systems face challenges such as doublespending attacks, inefficient consensus mechanisms, and limited trust management, which hinder their scalability and security. To overcome these issues, this research proposes the Fin Trust Blockchain Framework (FTBF), a multi-layered architecture designed to provide secure, scalable, and transparent solutions for Fintech applications. FTBF integrates Zero Trust Architecture (ZTA) at its core to ensure continuous user, node, and transaction validation. To prevent double-spending attacks, the Dynamic Coin Flow Output Model (DCFOM) tracks unspent transaction outputs, ensuring the uniqueness of digital tokens. The framework also introduces a novel consensus mechanism, the Time Elapsed Stake Secure Algorithm (TESSA), which enhances scalability and energy efficiency. Additionally, the Fair Trust Rating Server (FTRS) dynamically calculates and updates trust scores for network participants, storing them on a trust score ledger for transparency and accountability. FTBF addresses key blockchainsecurity, efficiency, and trust management limitations, paving the way for next-generation Fintech solutions with enhanced scalability, resilience, and transparency.
Blockchain technology affords the secure and effective means for addressing the spiking cases of financial frauds and inefficiencies. Using the immutable and distributed nature, blockchain provides robust transaction security. However, NFTs have significant limitations in the financial use scenario due to the non-fungible characteristics that discourage the consistent valuation and exchangeability. To overcome these challenges, the proposed system integrates NFTs into banking operations and enhances their utility in secure financial transactions. The system uses the Proof of Stake algorithm to record transactions on the blockchain, offering energy efficiency and scalability compared to traditional Proof of Work. This method ensures secure and reliable transaction processes while addressing the high demands of financial systems. The framework thereby extends the utility of NFTs beyond digital collectibles, redefining the concept of asset management in banking and creating innovative opportunities for financial applications. The results show that the incorporation of NFTs into blockchain technology improves transaction security and efficiency, thus establishing the potential for financial innovation. This approach not only minimizes risks associated with traditional systems but also introduces a transformational model for managing digital assets in banking. By utilizing NFTs in secure blockchain frameworks, the system opens avenues for scalable and innovative financial practices.
Viacheslav Askerov, Bohdan Tomchyshen, Houda El Bouhissi
In the modern world, blockchain technologies are gaining popularity due to their ability to ensure security, transparency and decentralization of data. One of the most promising platforms is The Open Network (TON), which provides unique opportunities for the development of smart contracts. This article discusses the main features of the TON blockchain and its advantages in the context of educational process automation. Smart contracts implemented on the TON platform can serve as a tool for optimizing educational systems. They allow to automate processes related to knowledge validation, grade management, and even finance in educational institutions. For example, smart contracts can provide automatic scholarships based on students' grades, as well as control over the implementation of curricula. The paper also analyzes the benefits of using smart contracts in the educational process, such as reducing administrative costs, increasing transparency, and reducing fraud risks. In addition, blockchain technologies provide an opportunity to create decentralized platforms for storing and sharing knowledge, which makes learning more accessible and effective. Particular attention is paid to the mathematical aspects that ensure the functioning of TON, as well as sharing mechanisms that allow the platform to process thousands of transactions per second. These technologies can be used to create educational applications requiring high bandwidth and data processing speed. The paper contains formulas that illustrate the technical characteristics of the TON blockchain and provides a detailed analysis of its architecture. The study shows that smart contracts on the TON platform have the potential to revolutionize educational processes by providing new tools for data management and security.
This article explores how blockchain technology fundamentally transforms identity management in payment ecosystems through decentralized identity frameworks. The paper examines how distributed ledger technology addresses traditional challenges including security vulnerabilities, inefficient KYC processes, and privacy concerns. Self-Sovereign Identity principles empower users with control over their personal data through digital wallets and verifiable credentials that enable selective disclosure. The implementation architecture integrates identity registration, digital wallet infrastructure, verification protocols, smart contract governance, and secure transaction finalization. This approach creates significant benefits across the payment ecosystem – financial institutions experience reduced fraud and streamlined compliance, merchants benefit from higher conversion rates and reduced liability, while consumers gain enhanced privacy and security. Despite these advantages, the paper acknowledges challenges including standardization requirements, regulatory alignment, credential recovery mechanisms, and scalability considerations that must be addressed for widespread adoption of decentralized identity in payment systems.
While the Indian public has grown quite fond of cryptocurrency in recent times, ambiguity still persists; specifically with respect to taxation. The primary reason for the same is unclear regulations. In 2022 India introduced a tax structure for virtual digital assets (VDAs) that included a 30% tax on gains along with a 1% TDS for transactions exceeding specified thresholds. The perplexity emerges primarily from India's ambiguous cryptocurrency tax regulations combined with compliance challenges. The existing framework regrettably fails to achieve both clarity and fairness by indiscriminately categorizing all digital assets as VDAs without distinguishing between cryptocurrencies, utility tokens, and non-fungible tokens (NFTs), which results in additional complications for tax treatment and compliance. This paper suggests reforms such as clearer asset definitions, revised tax rates to promote long-term investment, and simplifying the TDS process. It has called for the establishment of a regulatory authority in order to attain uniformity in taxation and trust of investors, with a view toward bringing alignment between India's cryptocurrency market and the globe.