The development of digital technology has introduced Non-Fungible Tokens (NFT) as a form of digital asset that has its own economic value and uniqueness. This opens up the potential for NFTs as objects of inheritance, however the traditional inheritance law system in Indonesia has not fully accommodated non-physical entities such as NFTs, especially due to unclear regulations regarding the transfer of rights to these assets after the death of the owner. This article discusses legal protection for heirs with NFT inheritance objects. This research uses normative or doctrinaire research methods using secondary data and a comparative legal approach, which involves analysis of relevant laws and regulations and NFT practices in several jurisdictions that have recognized the existence of NFTs. Based on the research results, NFTs can be inherited through a general will made by a notary, olographic, or private. However, the main challenge is access to digital wallets that store NFTs and are at risk of being lost if there is not sufficient technical information regarding access. To overcome this, inheritance planning with a dead's man switch mechanism in smart contracts can enable the automatic transfer of NFTs to heirs. However, legal recognition of this mechanism is still limited. This research highlights the need for clearer regulations and legal updates in Indonesia regarding digital asset inheritance, to provide legal certainty for owners and heirs as technology develops. It is hoped that the results of this research can contribute to the formulation of clearer regulations and provide adequate legal protection for heirs and heirs who own digital assets in Indonesia.
This study addresses confidentiality challenges in financial Distributed Ledger Systems (DLS) using Secure Multi-Party Computation (SMPC). By analyzing real-world datasets, it evaluates privacy risks, protocol efficiency, and system resilience. Findings highlight SMPC’s role in enhancing security while balancing computational efficiency. Using the Elliptic AML Bitcoin Transactions dataset, anomaly detection (Isolation Forest) identifies financial confidentiality vulnerabilities, revealing that anomalous transactions exhibit a 336.1% increase in volume and a 15.5% rise in frequency, suggesting heightened risks. A comparative analysis of SMPC protocols utilizing the MP-SPDZ benchmark dataset and one-way ANOVA confirms that Yao’s Garbled Circuits is the most computationally efficient (180.50 ms execution time), whereas Shamir’s Secret Sharing offers superior security (0.73 high-probability security). Kaplan-Meier survival analysis of Verizon DBIR 2024 establishes that SMPC extends financial system longevity (36.11 months vs. 21.91 months for traditional encryption). Recommendations include integrating scalable SMPC models, standardizing regulatory frameworks, optimizing algorithmic efficiency, and enhancing anomaly detection in financial DLS.
This study proposes a decentralized framework that merges smart contract based Decentralized Finance (DeFi) protocols and traditional Enterprise Resource Planning (ERP) systems to provide secure, automatic, and verifiable transaction execution. It constructs an additional middleware interface to guarantee interoperability between ERP modules and blockchain networks that utilize smart contracts for procurement, finance, and asset management modules. The system was tested empirically within a hybrid testbed of chains with Ethereum Virtual Machine (EVM) compatibility simulation executing ERP transaction testing on a simulated environment with physical hardware. According to quantitative assessment results, performance increased, achieving a 38% increase in transaction throughput, a 27% decrease in execution costs, increased trust and traceability due to cryptographic audit trails, and improved auditability. The research highlights the potential of DeFi integrated ERP systems for decentralized enterprise finance systems as a scalable secure replacement to centralized enterprise finance systems.
Deep learning, when integrated with a large amount of training data, has the potential to outperform machine learning in terms of high accuracy. Recently, privacy-preserving deep learning has drawn significant attention of the research community. Different privacy notions in deep learning include privacy of data provided by data-owners and privacy of parameters and/or hyperparameters of the underlying neural network. Federated learning is a popular privacy-preserving execution environment where data-owners participate in learning the parameters collectively without leaking their respective data to other participants. However, federated learning suffers from certain security/privacy issues. In this paper, we propose Split-n-Chain, a variant of split learning where the layers of the network are split among several distributed nodes. Split-n-Chain achieves several privacy properties: data-owners need not share their training data with other nodes, and no nodes have access to the parameters and hyperparameters of the neural network (except that of the respective layers they hold). Moreover, Split-n-Chain uses blockchain to audit the computation done by different nodes. Our experimental results show that: Split-n-Chain is efficient, in terms of time required to execute different phases, and the training loss trend is similar to that for the same neural network when implemented in a monolithic fashion.
The ability of tracing states of logistic transportations requires an efficient storage and retrieval of the state of logistic transportations and locations of logistic objects. However, the restriction of sharing states and locations of logistic objects across organizations from different countries makes it hard to deploy a centralized database for implementing the traceability in a cross-border logistic system. This paper proposes a semantic data model on Blockchain to represent a logistic process based on the Semantic Link Network model where each semantic link represents a logistic transportation of a logistic object between two parties. A state representation model is designed to represent the states of a logistic transportation with semantic links. It enables the locations of logistic objects to be derived from the link states. A mapping from the semantic links to the blockchain transactions is designed to enable schema of semantic links and states of semantic links to be published in blockchain transactions. To improve the efficiency of tracing a path of semantic links on blockchain platform, an algorithm is designed to build shortcuts along the path of semantic links to enable a query on the path of a logistic object to reach the target in logarithmic steps on the blockchain platform. A reward-penalty policy is designed to allow participants to confirm the state of links on blockchain. Analysis and simulation demonstrate the flexibility, effectiveness and the efficiency of Semantic Link Network on immutable blockchain for implementing logistic traceability.
J Dantas, P Silva, L Fiondella, C Melo · 5 authors
Blockchain technology has emerged, and many previous studies have assessed its performance issues. However, less attention has been paid to the dependability attributes, which have been a critical topic in service provisioning, considering public or private infrastructures. This paper introduces analytical models to assess the availability of private blockchain infrastructure for Hyperledger Fabric-based applications. Furthermore, a case study will be presented to demonstrate the feasibility of the proposed model, which may assist stakeholders in deciding whether to migrate from old to new technology. Some of the obtained results indicate that, unlike most conventional systems, general availability may decrease as new nodes are added to the environment. This phenomenon occurs due to the adopted endorsement policy, which determines the proportion of required nodes to sign the authenticity of a transaction.
Grzegorz Fabiański, Rafał Stefański, Orfeas Stefanos Thyfronitis Litos
In this work we use formal verification to prove that the Lightning Network (LN), the most prominent scaling technique for Bitcoin, always safeguards the funds of honest users. We provide a custom implementation of (a simplification of) LN, express the desired security goals and, for the first time, we provide a machine checkable proof that they are upheld under every scenario, all in an integrated fashion. We build our system using the Why3 platform.
William C. Quigley, Mohamed Rahouti, Gary M. Weiss
The maritime industry is governed by stringent environmental regulations, most notably the International Convention for the Prevention of Pollution from Ships (MARPOL). Ensuring compliance with these regulations is difficult due to low inspection rates and the risk of data fabrication. To address these issues, this paper proposes a secure blockchain-assisted framework for real-time maritime environmental compliance monitoring. By integrating IoT and shipboard sensors with blockchain technology, the framework ensures immutable and transparent record-keeping of environmental data. Smart contracts automate compliance verification and notify relevant authorities in case of non-compliance. A proof-of-concept case study on sulfur emissions demonstrates the framework's efficacy in enhancing MARPOL enforcement through real-time data integrity and regulatory adherence. The proposed system leverages the Polygon blockchain for scalability and efficiency, providing a robust solution for maritime environmental protection. The evaluation results demonstrate that the proposed blockchain-enhanced compliance monitoring system effectively and securely ensures real-time regulatory adherence with high scalability, efficiency, and cost-effectiveness, leveraging the robust capabilities of the Polygon blockchain.
The article explores the impact of blockchain technology on accounting and financial reporting in enterprises. The study highlights the growing relevance of blockchain integration in the accounting process due to the increasing complexity of financial transactions and the need for transparency, reliability, and security of financial data. The purpose of the research is to analyze the role of blockchain in transforming traditional accounting practices and to assess its potential for improving financial reporting in the context of modern digitalization and economic challenges. The study employs a combination of qualitative and comparative analysis methods to examine the advantages and challenges of implementing blockchain technology in accounting. The research methodology includes an assessment of blockchain's potential in ensuring data immutability, automating routine accounting tasks, and enhancing trust in financial transactions. A comparative approach is utilized to juxtapose traditional accounting practices with blockchain-based solutions, identifying their key differences and benefits. Additionally, international experiences in blockchain adoption for financial reporting are analyzed to outline global trends and best practices. The findings indicate that blockchain technology significantly improves the transparency and security of financial data by providing a decentralized and immutable ledger. The study identifies key benefits such as real-time transaction tracking, reduced risk of fraud, and automation of financial reporting processes through smart contracts. It also highlights the ability of blockchain to streamline auditing by ensuring that financial records remain unaltered and verifiable. However, challenges such as high implementation costs, regulatory uncertainty, and the need for skilled professionals are also identified as barriers to widespread adoption. The practical significance of the article lies in its recommendations for improving the legislative framework to facilitate the adoption of blockchain in accounting. The study suggests the development of national accounting standards that accommodate blockchain technology, the establishment of regulatory guidelines for smart contracts, and the integration of blockchain-based solutions into public financial reporting systems. By addressing these issues, blockchain technology can become a crucial tool for enhancing financial accountability, reducing operational risks, and fostering trust in financial transactions. The research concludes that the successful implementation of blockchain in accounting requires coordinated efforts among policymakers, financial institutions, and businesses to overcome existing challenges and unlock the full potential of digital transformation in financial reporting.
In recent years, the proliferation of malware has reached unprecedented levels, leading to escalating cybercrime costs. Signatures extracted by static analysis of files have been widely adopted for malware detection: vendors maintain databases of known malware signatures that are shared with registered users. The recent literature has proposed the use of private and consortium (thus, permissioned) blockchains for spreading signatures among blockchain users. These approaches require controlled access to enhance trust and accountability but restrict the widespread sharing of up-to-date signatures because users must be registered. In this paper, we present a novel technique that leverages a public blockchain to enable the massive dissemination of malware signatures among any users since a public blockchain is permissionless. On the other hand, the use of a public blockchain introduces new challenges related to security and data privacy, which our solution solves. The main benefit and outcome of our solution is that any users can securely access and verify malware signatures facilitating real-time detection of malicious files. We implemented our solution in Ethereum and exploited a smart contract written in Solidity to demonstrate that our approach is highly cost-effective.
Gopal Krishan Prajapat, S. Pradeep, Dharmendra Kumar Yadav
Blockchain is the technology which greatly attracted the industries as well as the academics of the educational system because of its variety of applications and innovations around the globe. Smart contract is one of the most highly used technological move in the blockchain technology which increased its attention among the researchers. A smart contract has been embedded in the blockchain as an agreement that does not need any third-party intervention and executes automatically to perform different sophisticated tasks. Significant research has been done in the area of smart contract in blockchain in recent years. The smart contract has its impact in many industrial applications like supply chain management, digital identity, IOT, business processes etc. This paper aims to review the recent work that has been done in the area of smart contracts in different domains. We will present a comparative study of smart contract platforms, languages and applications under different categories like security, management, social application needs, etc.
Diana Hawashin, Khaled Salah, Raja Jayaraman, Raja Wasim Ahmad · 6 authors
• Proposes a blockchain-based solution to reduce waste in the dairy industry • Ensures waste assessment and accountability through the proposed solution • Tests and validates various scenarios to evaluate the practicality of the system • Presents a security analysis to assess the system's resilience against threats In recent years, the global demand for dairy products has reached unprecedented levels in the food and beverage market. Despite being produced in large quantities to meet daily needs, high organic content in milk causes it to expire quickly, leading to food waste. Current dairy supply chain management systems lack traceability, auditability, and trust relationships, contributing to the problem. To address this issue, we propose a private Ethereum blockchain-based solution that holds all participants accountable and assesses their actions in a decentralized, auditable, traceable, secure, private, and trustworthy manner. Our system consists of various phases managed by four smart contracts that ensure all involved parties are accountable. We use an events-based approach to ensure traceability and data provenance, where all actions are stored on an immutable ledger in the form of events. By providing a transparent and traceable system, it encourages responsible resource utilization and supports a more sustainable approach to dairy production. We present the system architecture, sequence diagrams, entity-relationship diagrams, and algorithms to explain the working principles of our solution. We also validate the effectiveness of our developed smart contracts and make our smart contract code publicly available on GitHub.
In the context of the deep integration of rural revitalization strategy and digital technology, the digital transformation of rural tourism faces threefold dilemmas of efficiency, trust, and cultural preservation. This paper, taking blockchain technology as a starting point, systematically explores the internal logic and practical paths of its empowerment in rural tourism, aiming to construct a "technology-scenario-governance" collaborative framework to resolve structural contradictions in industrial development. The study is based on the Social-Technical Systems Theory (SST), adopting interdisciplinary research methods, and uses typical cases to demonstrate how blockchain technology drives high-quality development in rural tourism by reconstructing production relations. The study finds that blockchain technology, through mechanisms of "trusted data flow" and "autonomous smart contracts," reshapes the power structure, value transfer, and governance models in rural tourism. Its distributed ledger feature solves issues such as data islands and the loss of trust in stakeholders, while its DAO governance and Token economic models activate villagers' participation. The paper also proposes four-dimensional application scenarios covering trusted service chains, value co-creation chains, green governance chains, and inclusive finance chains, achieving the reconstruction of consumption scenarios, cultural IP development, ecological supervision optimization, and investment and financing innovation through technological integration. Furthermore, the paper warns of three major challenges for the technology’s implementation: the gap between computing power and rural infrastructure, the institutional coupling difficulties between on-chain and off-chain systems, and the conflict between technological rationality and rural ethics. It proposes a "lightweight blockchain + edge computing" technical solution and designs a "multi-party chain governance committee" system to balance the rights and responsibilities of government, enterprises, and villagers, incorporating "ethical coding" into the design of technology to embed rural culture. Future research should focus on the integration of the metaverse, AI, and blockchain technologies, enhancing service personalization while preventing cultural alienation risks, thus providing solutions for rural common prosperity that combine technological innovation with the protection of cultural roots.
The ability of blockchain technology to innovate digital payments system is increasingly recognized, particularly in the public sector of emerging economies. This paper takes an exploratory approach to find out how it can be possible for blockchain-integrated digital payment systems to create enhanced transparency and security alongside improved economic efficiency in public finance by developing India's Unified Payments Interface as a model for scalable, government-supported digital payment frameworks. In an emerging market, blockchain immutability and decentralization potentially minimize corruption and reduce transaction costs, enhancing ease of cross-border payments, which are believed to spur inclusive economic growth. This study builds on a comprehensive review of previous literature and an analysis of the application of blockchain in public finance to examine the potential of blockchain to foster transparency and trust, overcome technological and regulatory challenges, and improve efficiency in financial transactions. In addition, a UPI case study is performed to describe the blockchain pros and cons in mature digital payment infrastructures. Based on this analysis, practical policy recommendations are derived for governments, central banks, and other stakeholders who are interested in blockchain adoption for sustainable, secure, and transparent digital finance ecosystems. This paper endeavours to explain the comprehensive framework to understand the value of blockchain in public sector payment systems by providing some insights into the opportunities that can be pursued and practical steps that need to be taken in order to fully leverage blockchain in the digital payment landscape of emerging economies.
Yingqiang Ge, Haochuan Wang, Kenny Cheah Soon Lee, A.Z.N.I.Z.A.R.I.N.A.B.I.N.T.I. TAHA
Social media plays a critical role in influencing Bitcoin adoption trends from 2015 to 2023, acting as both an enabler and a disruptor. While platforms have enhanced public awareness of cryptocurrency, they have also fuelled challenges such as misinformation and impulsive behaviour, often undermining responsible consumption of Bitcoin as a financial tool. This dual role underscores the need for targeted interventions to ensure that the adoption of Bitcoin aligns with ethical and informed practices. To foster responsible consumption, social media platforms must address the issue of content imbalance. Algorithms that prioritize sensationalism over educational material often mislead users, steering them toward impulsive decisions. A redesign of these algorithms is essential to elevate balanced, fact-based content that empowers users to make informed choices about Bitcoin. Additionally, introducing verified content tags can serve as a vital measure to combat misinformation, ensuring that users can easily identify credible information sources. Regulatory frameworks are another cornerstone of promoting responsible consumption in the cryptocurrency space. By implementing transparency guidelines and ethical standards for influencers and content creators, stakeholders can mitigate manipulation and foster trust within the digital ecosystem. By integrating these measures, social media can evolve into a platform that not only supports Bitcoin adoption but also ensures it is guided by responsible consumption principles. Such a transformation is vital to harnessing social media's potential while minimizing the risks posed to individuals and the broader financial community.
The intersection of fintech and sustainable finance drives significant changes in the global financial landscape by promoting green investments. Fintech comprises innovations such as blockchain, artificial intelligence (AI), and crowdfunding platforms. As the global community strengthens efforts to combat climate change and encourage sustainability, fintech offers scalable solutions to mobilize capital for green initiatives while upholding ESG (Environmental, Social, and Governance) standards. Blockchain, for example, provides transparency by creating immutable ledgers that track investment flows and verify sustainability claims, helping to mitigate the risk of greenwashing. Additionally, fintech platforms democratize investment, enabling small and medium-sized enterprises (SMEs) and individual investors to participate in sustainable projects via decentralized finance (DeFi) systems. However, the rapid expansion of fintech in sustainable finance poses challenges concerning data security, regulatory uncertainties, and the potential for greenwashing. While fintech enhances ESG reporting through AI-driven analytics, the lack of standardized global frameworks complicates the regulatory landscape. Furthermore, the heavy reliance on digital platforms introduces risks related to cybersecurity and privacy. Despite these challenges, fintech remains pivotal in aligning capital flows with the United Nations’ Sustainable Development Goals (SDGs) by lowering transaction costs, accelerating investment processes, and expanding financial inclusion. This research will address regulatory gaps, long-term performance assessments of fintech-facilitated green investments, and their socio-economic impacts, especially in underdeveloped regions.
Suleiman Dahir Mohamed, Mohd Tahir Ismail, Majid Khan Majahar Ali
Despite the introduction of several adjustments, mitigating data anomalies in financial datasets has proven challenging, particularly in the context of cryptocurrencies with extreme values and increased volatility. The progress in properly addressing these anomalies prior to testing remains restricted, highlighting the unique and complex nature of financial data in this domain. Thus, in this paper we propose a hybrid approach called the Win-IS strategy. It is meant to address the influence of extreme outliers in the tail and subsequently identify breaks, trend breaks and outliers in cryptocurrencies. This methodology uses the winsorization (Win) process to enhance the effectiveness of the indicator saturation (IS) approach. The study uses cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Tether (USDT), and Ripple (XRP). The results of the research indicate that the winsorization strategy improved the detectability of the IS approach, with Win-IS outperforming the IS method in terms of the Bayesian Information Criterion. Furthermore, the Win-IS technique uncovered additional breaks, trend breaks and outliers that were previously unknown and repeated in some cases as detected by the IS strategy. The effect of winsorization is dependent on the chosen percentile and dataset attributes. Through detailed examination and comparison, the findings of this research contribute to the improvement of other detection approaches, providing a valuable perspective for researchers and practitioners in the field. Additionally, this hybrid approach can improve decision-making, risk management and model creation, benefiting investors, legislators and scholars.
With the enormous amount of data produced daily, cloud and fog computing presented efficient and effective models for real-time data exchange. Nevertheless, this technology came with a cost at the security level, where it became an easy target for malicious actions that could quickly spread throughout the model. Blockchain, a recent and promising technology, has shown to be a suitable solution for securing transactions in the fog environment because of the distributed ledger structure that makes it resistant to many types of attacks. Scalability, however, introduced the main drawback of a blockchain by making it inefficient in some real-world applications, especially in the medical field, which includes a lot of data exchange. This work will suggest a scalable and secure model for fog and cloud computing in healthcare systems that depend on sidechains and the clustering of the available fog nodes. The importance of the model is highlighted, and experimental results showed promising outcomes.
The purpose of the paper is to present the results of the research on the potential inclusion of different types of crypto assets, such as Bitcoin, NFTs (Non-Fungible Tokens), and DeFi (Decentralised Finance), within optimal portfolios to help reduce variance or increase returns compared to equity investments. The analysis includes comparisons of different crypto assets and countries, specifically the Czech Republic, Hungary, and Poland. The author constructs optimal equity-crypto portfolios in the Markowitz environment for the period from 16 February 2021 to 8 January 2024, which was adjusted to NFT data availability from this date. Calculations are conducted under two scenarios: minimizing portfolio variance and maximizing returns. The research demonstrates that Bitcoin, NFTs and DeFi can be part of a well-diversified equity portfolio, primarily due to their low correlation with equity markets in the Czech Republic, Hungary and Poland. The paper is important for investors seeking diversification possibilities. Although diversification has been increasingly difficult recently due to increasing correlation coefficients between assets, new asset classes, such as crypto assets, have been created, offering new potential for portfolio creation. The conclusions drawn may also be vital for policymakers who should consider them when formulating regulations concerning systematic risk. The paper contributes value in four aspects. 1) The paper demonstrates that including NFTs, DeFi and Bitcoin in a stock portfolio creates diversification benefits for most portfolios. This is partially due to their slightly higher returns but mostly because of the lower risk that results from the low correlation of crypto assets with traditional markets. 2) Optimal shares of crypto assets differ depending on the equity and the crypto involved. 3) The paper considers Czech, Hungarian, and Polish markets while existing papers concentrate mostly on the American market. 4) The paper shows that there are minimal connections between the Czech, Hungarian, and Polish equity markets and crypto assets.
In distributed computing, data trading mechanisms are essential for ensuring the sharing of data across multiple computing nodes. Nevertheless, they currently encounter considerable obstacles, including low accuracy in matching trading parties, ensuring fairness in transactions, and safeguarding data privacy throughout the trading process. To address these issues, we put forward a data trading security scheme based on zero-knowledge proofs and smart contracts. In the phase of preparing the security parameters, the objective is to reduce the complexity of generating non-interactive zero-knowledge proofs and to enhance the efficiency of data trading. In the pre-trading phase, we come up with attribute atomic matching smart contracts that are based on precise data property alignment. The goal is to get trading parties to match data attributes in a very specific way. During the trading execution phase, we use lightweight cryptographic algorithms based on Elliptic Curve Cryptography (ECC) and non-interactive zero-knowledge proofs to encrypt trading data twice and make attribute proof contracts. This keeps the data safe and private. The results of experiments conducted on the Ethereum platform in an industrial Internet of Things (IoT) scenario demonstrate that our scheme maintains stable and low-cost consumption while ensuring accuracy in matching and privacy protection. Especially in battery industrial manufacturing, the application of distributed computing is in huge demand and essential to maintaining a healthier technology integration among various systems and technological nodes to perform the better management of energy cells within the battery management system.
Magdalena Rãdulescu, Kamel Si Mohammed, Abdelmohsen A. Nassani, Nicoleta Dascalu
This study investigates the impact of Bitcoin's energy and water consumption on environmental sustainability, focusing on the load capacity factor (LCF) and the roles of energy transition green technology in major cryptocurrency-producing nations. Utilizing the method of moments quantile regression (MMQR) approach, the findings reveal a negative impact of mining energy consumption on environmental sustainability, particularly in the lower quantiles, with a stronger negative effect in the higher quantiles. Energy transition plays a critical role in moderating this impact, though the shift towards cleaner energy sources has not been sufficient to mitigate the adverse environmental effects. The water footprint has limited influence on LCF across upper and lower quantiles. Moreover, the results do not support the LCF hypothesis. An increase in mining activity leads to a rise in LCF, while this effect turns negative in the 90th quantile. These findings underscore the importance of energy transition in reducing Bitcoin's environmental footprint and emphasize the need for policymakers to swiftly enact regulations and foster innovative technologies to promote environmentally sustainable digital currencies while providing valuable insights into water resource management.
Luiz Koodi Hotta, Carlos Trucíos, Pedro L. Valls Pereira, Mauricio Zevallos
Recent studies have suggested that more complex models than GARCH are better suited for forecasting cryptocurrency risk measures, such as Value-at-Risk and Expected Shortfall. Among these studies, some highlight the advantages of MSGARCH models over traditional GARCH models. While improvements over single-regime GARCH models have been observed by using MSGARCH, the literature has only focused on the MSGARCH specification proposed by Haas, Mittnik and Paolella (Journal of Financial Econometrics, 2004) overlooking several other well-established MSGARCH specification alternatives. In this paper, we illustrate that exploring alternative MSGARCH specifications can lead to improvements in risk measure performance, emphasizing the potential benefits of using several specifications.
This article provides a comprehensive analysis of the key risks associated with the operation of a crypto platform in the context of the transition to Web3 technology. The authors explore the activities of leading blockchain platforms such as Ethereum, Solana, Binance Smart Chain, Polkadot, Avalanche, Cosmos and Polygon, identifying the main types of risks that apply to the implementation of Web3 technology. The paper identifies threats associated with cryptocurrency volatility, regulatory uncertainty, cybersecurity, specific risks of decentralized finance (DeFi) and non-fungible tokens (NFTs), as well as scalability, accessibility and environmental issues. The authors analyzed the activities of the crypto platform and found that each platform has a unique structure and asset structure, which affects the nature of the risks. For example, Ethereum dominates the DeFi and NFT sectors, Solana is distinguished by its speed and low fees, Binance Smart Chain focuses on DeFi, and Polkadot and Cosmos are developing cross-chain technologies for interoperability. The main risks analyzed in the article include: Volatility of cryptocurrencies, which can increase financial instability; Cybersecurity, including hacking attacks and vulnerabilities of smart contracts; Regulatory uncertainty, which can hinder innovation and create legal conflicts; DeFi risks, such as errors in smart contracts, liquidation problems and systemic failures; NFT risks, in particular high market speculation and fraud risks; Scalability, including technical limitations and high fees; Complexity of use, which can limit the widespread adoption of Web3; Accessibility and inclusiveness, including unequal access to technologies; Energy consumption and environmental friendliness, which can affect the environment. To minimize these risks, the authors proposed a risk management strategy based on semi-fundamental principles: comprehensiveness, preventiveness, consistency, decentralization, transparency, security and interoperability. This strategy includes the introduction of modern analytical methods such as scenario analysis, machine learning, Value at Risk (VaR), Conditional VaR (CVaR), Monte Carlo models, multi-level security systems, bug bounty programs, transaction encryption, decentralized oracles, risk hedging using derivatives and RegTech solutions for regulatory compliance. For the effective implementation of the proposed strategy, a risk management roadmap was developed, which details the stages of risk identification, assessment, management and monitoring. This map includes specific tools for each stage, such as scenario analysis, AI analytics, blockchain scanners, VaR and CVaR models, attack models, stress testing, blockchain analytics, encryption, futures, options, RegTech, KPIs and behavioral models. The implementation of the proposed strategy will create a favorable environment for the reliable and sustainable development of Web3 technologies and the cryptocurrency market. Further research should be aimed at detailing platform-specific strategies and adapting them to the changing landscape of Web3.
The rapid advancement of Distributed Ledger Technology (DLT) is creating an unusual transformation in the banking industry, fostering innovation while challenging existing operating models. This paradigm shift, enabled by the emergence of decentralised technologies, has fuelled the ongoing debate on DLTs by highlighting their multifaceted potential, with impacts beyond their technological underpinnings, including regulatory frameworks, financial inclusion, and the fundamental architecture of the financial system. To contribute to understanding the challenges and impacts on the financial system, this special issue combines several research papers that provide an in-depth analysis of the complex influence of DLT on finance, presenting an argument highlighting the interconnection between technological innovation, financial accessibility, and regulatory development.