Smart contracts are essential to decentralized finance (DeFi) and blockchain ecosystems but are increasingly vulnerable to exploits due to coding errors and complex attack vectors. Traditional static analysis tools and existing vulnerability detection methods often fail to address these challenges comprehensively, leading to high false-positive rates and an inability to detect dynamic vulnerabilities. This paper introduces SmartLLM, a novel approach leveraging fine-tuned LLaMA 3.1 models with Retrieval-Augmented Generation (RAG) to enhance the accuracy and efficiency of smart contract auditing. By integrating domain-specific knowledge from ERC standards and employing advanced techniques such as QLoRA for efficient fine-tuning, SmartLLM achieves superior performance compared to static analysis tools like Mythril and Slither, as well as zero-shot large language model (LLM) prompting methods such as GPT-3.5 and GPT-4. Experimental results demonstrate a perfect recall of 100% and an accuracy score of 70%, highlighting the model's robustness in identifying vulnerabilities, including reentrancy and access control issues. This research advances smart contract security by offering a scalable and effective auditing solution, supporting the secure adoption of decentralized applications.
A. Bendada, Abdelaziz Amara Korba, Mouhamed Amine Bouchiha, Yacine Ghamri‐Doudane
The rapid growth of decentralized finance (DeFi) has led to the widespread use of automated agents, or bots, within blockchain ecosystems like Ethereum, Binance Smart Chain, and Solana. While these bots enhance market efficiency and liquidity, they also raise concerns due to exploitative behaviors that threaten network integrity and user trust. This paper presents a decentralized federated learning (DFL) approach for detecting financial bots within Ethereum Virtual Machine (EVM)-based blockchains. The proposed framework leverages federated learning, orchestrated through smart contracts, to detect malicious bot behavior while preserving data privacy and aligning with the decentralized nature of blockchain networks. Addressing the limitations of both centralized and rule-based approaches, our system enables each participating node to train local models on transaction history and smart contract interaction data, followed by on-chain aggregation of model updates through a permissioned consensus mechanism. This design allows the model to capture complex and evolving bot behaviors without requiring direct data sharing between nodes. Experimental results demonstrate that our DFL framework achieves high detection accuracy while maintaining scalability and robustness, providing an effective solution for bot detection across distributed blockchain networks.
This study explores the global patterns of non-fungible token (NFT) equity funding, focusing on NFTs’ role as a sustainable financial technology (fintech) in promoting the United Nations’ sustainable development goals (SDGs) as well as entrepreneurship and in balancing business growth with social impact. Utilizing descriptive tools and the Wilcoxon rank-sum (Mann–Whitney) test, we analyze global and regional data from 2015 to 2021 to examine NFT funding flows. The results show that funding flows from 2015 to 2021 exhibit notable differences and that funding flows in the United States (US) and Europe differ significantly from those in Latin America and the rest of the world (regions other than the US, Asia, Europe, Latin America, and Canada). Furthermore, using a narrative literature review, we determine that NFT-funded projects support achieving the SDGs (including decent work and economic growth; climate action; peace, justice, and strong institutions; quality education; partnerships for the goals; and industry, innovation, and infrastructure), fighting against hunger and poverty, promoting human well-being, facilitating financial inclusion, and reducing gender gaps, thereby ensuring business growth aligning with social benefits. However, technological barriers, negative environmental impacts, insufficient regulations, unequal benefit distribution, and social distrust may obstruct NFT innovation.
Decentralized and distributed systems lead to decentralized governance with transparent on-chain mechanisms. The new technological infrastructures cause fragmentation since intermediaries are no longer needed; therefore, the decentralized organizational models will have a remarkable impact on company law and financial markets regulation. The existing corporate forms do not fully satisfy the needs of decentralized autonomous organizations, and at least some adaptations become necessary to make governance mechanisms more flexible. In the field of financial law, alternative regulatory designs must be developed that more intensively address the offering of services as such rather than – as traditionally – the service providers. This contribution analyzes the normative needs for an appropriate legal framework in an environment of decentralization and considers potentially relevant new legal provisions reflecting the forthcoming business needs and participants’ protection requirements.
The aim of this research is to raise awareness regarding cryptocurrency fraud. In this context, the study focuses on cryptocurrency investment frauds and provides an evaluation from the perspective of new media literacy. Throughout the research process, a total of 969 complaints were analyzed under the categories of "Cryptocurrency Investment Fraud" and "Cryptocurrency and Victim Complaints" on the Şikayetvar platform. Adopting an exploratory approach, the complaints were coded under various themes using content and thematic analysis methods. The analysis process was conducted using MAXQDA 24, a qualitative data analysis software. The findings reveal that the theme with the highest frequency among types of fraud is "Fake Coin/Token" (337), illustrating the strategies employed by cryptocurrency fraudsters to deceive investors through fraudulent projects and assets. Additionally, the theme "Withdrawal and Transaction Request Rejection" (159) reflects the difficulties faced by users in conducting transactions and withdrawing their funds on legitimate platforms, showcasing how fraudulent platforms delay their victims. Furthermore, scams conducted through Telegram channels (173) have garnered attention, highlighting the significant role social media platforms play in fraudulent activities. Cryptocurrency frauds underscore the deficiencies in users' new media literacy and emphasize the importance of financial literacy and new media literacy education in an environment where fraud is prevalent.
Efficient cattle healthcare management is vital for ensuring productivity and welfare in dairy production, yet traditional record-keeping methods often lack transparency, security, and efficiency, leading to challenges in livestock product quality and healthcare. This study introduces a novel framework leveraging Zero Knowledge (ZK)-Rollups-enhanced Layer 2 blockchain and Non-Fungible Tokens (NFTs) to address these issues. NFTs serve as secure digital certificates for individual cattle health records, ensuring transparency and traceability. ZK-Rollups on the Layer 2 blockchain enhance scalability, privacy, and cost-efficiency, while smart contracts automate key processes such as veterinary scheduling, medication delivery, and insurance claims, minimizing administrative overhead. Performance evaluations reveal significant advancements, with transaction delays of 4.1 ms, throughput of 249.8 TPS, gas costs reduced to 26,499.76 Gwei, and a time-to-finality of 1.1 ms, achieved through ZK-SNARKs (ZK-Succinct Non-Interactive Arguments of Knowledge) integration. These results demonstrate the system’s potential to revolutionize cattle healthcare management by combining transparency, security, and operational efficiency.
Irving Jared Villanueva, Madhusudan Srinivasan, Faqeer Ur Rehman
Blockchain smart contracts play a crucial role in automating and securing agreements in diverse domains such as finance, healthcare, and supply chains. Despite their critical applications, testing these contracts often receives less attention than their development, leaving significant risks due to the immutability of smart contracts post-deployment. A key challenge in the testing of smart contracts is the oracle problem, where the exact expected outcomes are not well defined, complicating systematic testing efforts.Metamorphic Testing (MT) addresses the oracle problem by using Metamorphic Relations (MRs) to validate smart contracts. MRs define how output should change relative to specific input modifications, determining whether the tests pass or fail. In this work, we apply MT to test an Ethereum-based crowdfunding smart contract, focusing on core functionalities such as state transitions and donation tracking.We identify a set of MRs tailored for smart contract testing and generate test cases for these MRs. To assess the effectiveness of this approach, we use the Vertigo mutation testing tool to create faulty versions of the smart contract. The experimental results show that our Metamorphic Relations (MRs) detected 25.65% of the total mutants generated, with the most effective MRs achieving a mutant-killing rate of 89%. These results highlight the utility of MT to ensure the reliability and quality of blockchain-based smart contracts.
Fueled by new technologies, such as blockchain and Web3, brands are increasingly extending into the digital space. One such novel extension is the non-fungible token (NFT). Numerous examples indicate that brands’ market performance with NFTs varies widely in terms of short-term revenues and spillovers to the parent brand. However, little is known about the factors that are associated with a successful performance. The goal of our research was to identify those factors. Regarding short-term revenues, we empirically tested the value of several possible success drivers; these drivers reflected a combination of the most important success factors for physical brand extensions (e.g., extension fit, brand equity) and value drivers for NFTs (e.g., added NFT utility, number of NFTs in the campaign). Using a novel dataset of 450 NFT campaigns, we document that both types of variables help to predict financial revenues from brand-related NFTs. Going beyond the short-term financial results of NFT campaigns, we also report experimental evidence that shows such campaigns may create negative spillovers for the parent brand. Overall, this research demonstrates (i) which value drivers correlate with a brand’s NFTs success, (ii) which brands are the best fit for NFTs, (iii) in what ways brand managers need to adapt their brand-extension strategies from the physical to the digital environment if they want to succeed with NFTs, and (iv) the risk that brand extensions with NFTs may hurt customers’ attitude towards the parent brand.
The purpose of this article is to study analysis the Decentralized Finance (DeFi) literature. By synthesizing the themes and theorical frameworks, we aim to identify knowledge gaps and potential areas for future research in the DeFi landscape. We conduct bibliometric and content analysis on a corpus of 275 articles extracted from the Web of Science and Scopus databases. We use the Bibliometrix package in R software to apply co-citation and bibliographic coupling. We find three research clusters (a) socioeconomic (b) technology and (c) financial with their conceptual structure, interactions and transformations. Applying both co-citation and bibliographic coupling network analysis yields a dynamic view of the field tracing thematic evolution from its inception to the present day, revealing a decline in academic interest in DeFi security vulnerabilities in contrast to the growing emphasis on social media's influence on DeFi prices.
Ni Gusti Ayu Pitria, Winola Wijayanti, Grace T. Pontoh, Aini Indrijawati
This research aims to conduct a comparative study between the peer-to-peer lending system and the traditional loan model. The method used is a systematic literature review study of 61 relevant scientific papers published between 2015 and 2024. The parameters analyzed include the provision of access to finance, transaction costs, the speed of the lending process, as well as the level of transparency and consumer protection. The results show that the peer-to-peer lending system has advantages in terms of providing easier and faster access to financing for individuals and small businesses because it uses a simple and uncomplicated digitization process. This model is also able to reduce transaction costs and speed up the process through the application of blockchain technology that streamlines the flow of transactions. The study also found that blockchain technology supporting peer-to-peer lending plays an important role in increasing the transparency of transactions through decentralized digital records that cannot be manipulated. However, the challenges of immature financial regulations and rapidly evolving cybersecurity risks still need to be addressed to support the wider adoption of peer-to-peer lending as a new alternative in the financial services industry. Therefore, further research is needed to find solutions to these barriers so that peer-to-peer lending can be optimally utilized as an inclusive future financial solution.
Данная научная статья посвящена исследованию влияния децентрализованных финансовых систем на стабильность традиционных банковских институтов в условиях цифровой трансформации экономики. Во введении описывается актуальность темы, обусловленная быстрым развитием финансовых технологий, ростом популярности криптовалют и смарт-контрактов, а также возрастающей ролью блокчейн-технологий в финансовом секторе. В связи с этим традиционные банки сталкиваются с вызовами, требующими переосмысления бизнес-моделей и адаптации к новым условиям. В разделе методологии подробно изложены используемые исследовательские подходы и методы анализа. Для эмпирической проверки гипотез применялись сравнительный анализ, кейс-стади, а также экономикоматематическое моделирование. Используемые данные включают показатели финансового состояния банков, динамику инвестиций в цифровые активы, а также статистические данные по децентрализованным платформам. Кроме того, в исследовании учитывались нормативно-правовые аспекты, способствующие формированию гибкой регуляторной среды. В разделе результатов представлена совокупность эмпирических находок, показывающих, что интеграция децентрализованных финансовых систем оказывает как положительное, так и отрицательное воздействие на традиционные банковские институты. С одной стороны, банки, активно внедряющие технологические инновации, демонстрируют улучшение операционной эффективности и расширение спектра финансовых услуг. С другой стороны, наблюдается рост рисков, связанных с кибербезопасностью и недооценкой новых технологических угроз, что может негативно сказаться на устойчивости финансовой системы. Заключительный раздел обсуждения акцентирует внимание на необходимости гибкого регулирования и стратегического переосмысления роли банков в условиях цифровой трансформации. Авторы предлагают рекомендации для интеграции традиционных финансовых институтов в экосистемы децентрализованных финансов с целью повышения их устойчивости, конкурентоспособности и адаптивности к быстро меняющимся рыночным условиям. Таким образом, представленное исследование способствует расширению теоретических знаний и практических подходов к управлению рисками и возможностям в новой экономической реальности. This scientific article is devoted to the study of the impact of decentralized financial systems on the stability of traditional banking institutions in the context of the digital transformation of the economy. The introduction describes the relevance of the topic due to the rapid development of financial technologies, the growing popularity of cryptocurrencies and smart contracts, as well as the increasing role of blockchain technologies in the financial sector. In this regard, traditional banks face challenges that require rethinking their business models and adapting to new conditions. The methodology section describes in detail the research approaches and methods of analysis used. Comparative analysis, case studies, and economic and mathematical modeling were used to empirically test hypotheses. The data used includes indicators of the financial condition of banks, the dynamics of investments in digital assets, as well as statistical data on decentralized platforms. In addition, the study took into account regulatory and legal aspects that contribute to the formation of a flexible regulatory environment. The results section presents a set of empirical findings showing that the integration of decentralized financial systems has both positive and negative impacts on traditional banking institutions. On the one hand, banks that actively implement technological innovations demonstrate improved operational efficiency and an expanded range of financial services. On the other hand, there is an increase in risks associated with cybersecurity and underestimation of new technological threats, which can negatively affect the stability of the financial system. The final section of the discussion focuses on the need for flexible regulation and strategic rethinking of the role of banks in the context of digital transformation. The authors propose recommendations for integrating traditional financial institutions into decentralized finance ecosystems in order to increase their resilience, competitiveness, and adaptability to rapidly changing market conditions. Thus, the presented research contributes to the expansion of theoretical knowledge and practical approaches to risk management and opportunities in the new economic reality.
Open access
Digitalization and Economic Development in Agriculture
Senior Software Engineering Manager in Payments, The Huntington National Bank, Columbus, Ohio, USA, Pushpalika Chatterjee
Background: The rapid evolution of technology in the financial technology (fintech) sector has necessitated the adoption of innovative solutions to address increasing demands for higher data rates, lower latency, and enhanced security. Traditional centralized systems are susceptible to data tampering, service disruptions, and man-in-the-middle attacks, compromising the integrity of sensitive financial transactions. Objectives: This paper aims to explore the convergence of blockchain technology, smart contracts, and machine learning to address security, transparency, and operational efficiency challenges in the fintech sector. It investigates the implications of these technologies for compliance, regulatory frameworks, and ethical governance. Method: The study reviews existing literature and data sources spanning the last decade, with a focus on blockchain applications in fintech. Inclusion criteria include studies on decentralized ledgers, smart contract automation, and machine learning algorithms for predictive analytics. Comparative analyses are presented through flowcharts, graphs, and tables to highlight operational improvements, security enhancements, and cost reductions. Findings: Blockchain technology provides a decentralized and immutable ledger that enhances transparency and security in financial transactions. Smart contracts automate processes, reducing operational costs and improving accessibility to underserved populations. Machine learning enhances blockchain applications by enabling predictive analytics and data-driven decision-making. Despite significant advancements, challenges remain, including the need for robust governance structures to ensure ethical implementation and compliance with regulatory standards. Significance: This review offers new insights by integrating blockchain and machine learning in the context of fintech, addressing critical aspects such as operational efficiency, security, and regulatory compliance that were underexplored in prior studies. It highlights the transformative potential of these technologies in fostering innovation while providing a roadmap for overcoming bottlenecks and paving the way for a secure, inclusive, and efficient financial ecosystem. Keywords: Fintech, AI in Finance, Smart Contracts, Distributed Ledgers, Blockchain
This study aims to conceptualize a new theoretical framework for financial intermediation in response to the rise of Financial Technology (FinTech) and Decentralized Finance (DeFi), which have introduced structural and functional changes to the traditional role of banks. Classical intermediation theory, which emphasizes delegated monitoring, liquidity transformation, and maturity transformation, is increasingly insufficient to explain emerging hybrid and disintermediated financial systems. This research adopts a qualitative library-based method, using thematic literature analysis from peer-reviewed academic journals, institutional reports, and policy papers published between 2017 and 2025. The findings reveal that intermediation functions are no longer confined to traditional institutions; instead, they are distributed across smart contracts, decentralized protocols, and algorithmic platforms. A key novelty of this study lies in the articulation of “protocolised intermediation,” a concept that captures the convergence of centralized banking and decentralized architectures into hybrid financial models. The analysis also introduces a dual-axis framework to categorize intermediation based on levels of decentralization and functional transformation. Furthermore, the research synthesizes recent insights on risk governance, regulatory arbitrage, and digital trust, positioning them as critical variables in the theoretical evolution of intermediation. In conclusion, the study offers a reconceptualized understanding of intermediation theory, aligning it with the realities of the post-classical, algorithm-driven financial ecosystem. This contribution is expected to support further academic exploration and inform global financial policy debates.
T Manoj, Krishnamoorthi Makkithaya, V G Narendra, Vijaya Murari T
Agricultural insurance is one of the formal and reliable risk management instruments to cope with agrarian risks. Presently, agricultural insurance products rely heavily on centralized systems that lack transparency and traceability, leading to suboptimal risk assessment and delays in payouts. To address these concerns the fintech industry has started to embrace a popular decentralized technology called blockchain. However, blockchain operates as a deterministic and synchronized state system, which means it cannot directly access real-world data for decentralized applications. A mechanism called oracle is required for the trusted access of agricultural risk factor data to smart contracts from external sources such as Internet of Things (IoT) devices, web services and databases. Hence, the present study proposes a blockchain-based AgriInsureDON framework with a privacy-preserving decentralized oracle for risk factor data access from trusted IoT devices for agricultural insurance. Initially, a method for computing the direct reputation score of IoT devices based on behavioral and data reputation is illustrated. Next, a privacy preserved decentralized oracle mechanism is designed and implemented using a masked secret sharing and secure aggregation scheme. Later, we demonstrate the working of weather-indexed insurance contracts based on decentralized oracle. Finally, a performance analysis of smart contract transactions w.r.t average latency, throughput, average CPU utilization and total memory usage is conducted on Ganache and Sepolia test networks. The evaluation results of privacy-protected decentralized oracle and an indexed insurance contract within AgriInsureDON framework confirms that transactions are efficient and scalable to meet the requirements of expedited claim settlement.
Abstract Blockchain technology has a unique ability to automate accounting processes that are a part of regulatory requirements in all commercial enterprises. Moreover, it can hold verified accounting records and eliminate the need for a trusted third party. Despite blockchain's potential to transform the nature of traditional accountancy procedures, adoption by the accounting industry is somewhat limited. Knowledge in this domain is lacking, and research on the antecedents influencing the adoption of blockchain-based accounting systems is scarce. This study is rooted in the technology-organization-environment (TOE) framework, presenting a trust-centric adoption model based on diligent analysis of blockchain and technology adoption literature. The model proposes that TOE factors mediate trust's role in adopting blockchain for accounting applications. The model was validated based on qualitative semi-structured interviews of twelve industry leaders and was comprehensively tested using a quantitative survey-based methodology with accounting professionals knowledgeable about blockchain technology. The data collected was analyzed using PLS-SEM. The results demonstrate the role of trust and the mediating effect of the theorized TOE variables on adopting blockchain-based accounting solutions. The results' implications for research and practice are discussed.
This article presents a comprehensive investigation of tokenized Sukuk (Islamic bonds), demonstrating that blockchain technology and smart contracts have significantly positively impacted Islamic finance. Our findings discuss smart securities globally, key Sharia-related jurisprudential matters, international cases of blockchain-based or smart Sukuk implementations, examining how each case addresses critical issues in conventional Islamic financing and interview analysis. Background: Exploration of the current role of blockchain implementation in Islamic finance. Objectives: The primary objective of this article is to examine how the use of smart contracts, particularly smart Sukuk, has enhanced Islamic finance. Methods/Approach: This article employs a descriptive analytical method to discuss how smart contracts improve Islamic finance through the issuance of smart Sukuk. We utilized secondary data collected from existing literature on the evolving field of smart Sukuk, including scientific papers, professional reports, and company websites. Additionally, we conducted interviews with the CEOs of two firms, Blossom Finance and Finterra, which have integrated smart contracts into Islamic finance. Eventually qualitative analysis techniques employed by using Atlas.ti software and generate a word cloud to provide a concise overview of interviewees’ primary concerns and interests. Results: Our results are presented in four sections. First, we provide an overview of the implementation of smart securities worldwide. Next, we discuss key jurisprudential matters regarding the introduction of blockchain and smart contracts in Islamic fintech. Besides, we offer a comprehensive review of cases where blockchain and smart Sukuk have been implemented in Islamic finance, highlighting the problems addressed and the enhancements made in each case. Finally, we analyze the visual representation derived from interviews with ATLAS.ti software in the form of a word cloud. Conclusions: This article investigates how international, real-world, and innovative examples of blockchain and smart contract implementations have improved and enhanced Islamic financing processes. Overall, the advantages of using blockchain and smart Sukuk in these examples include streamlining Islamic financing processes, facilitating social financing, reducing poverty, enhancing Sukuk issuance by the banking sector, and enabling pre-purchasing and easier trading of Sukuk in secondary markets. These promising examples illustrate the significant potential of this innovative approach, which can benefit researchers and practitioners in Islamic finance. Ultimately the interviews highlighted the critical role of blockchain reinforcing the findings from the case studies.
Nelly Nur Rohmah, Nu’matun Najibah, Amelia Rohmawati, Pungky Lela Saputri
The development of information and communication technology has driven significant innovation in the financial sector through Financial Technology (Fintech). This article explores the role of Fintech in shaping the global market for digital currencies and its impact on economic stability. Using a qualitative descriptive approach and literature review, this study finds that Fintech, through technologies such as blockchain, peer-to-peer (P2P) lending, and Decentralized Finance (DeFi), facilitates efficient cross-border transactions, enhances financial inclusion, and creates a more interconnected global financial ecosystem. Additionally, digital currencies such as cryptocurrencies and Central Bank Digital Currencies (CBDCs) offer potential benefits in transaction efficiency, transparency, and reduced global transaction costs. However, the adoption of digital currencies also presents challenges, including high value volatility, risks to monetary policy, and opportunities for illegal activities such as money laundering. This article recommends the importance of comprehensive global regulatory policies to mitigate risks, control the circulation of digital currencies, and ensure economic stability in the digital era. Thus, Fintech and digital currencies can be optimized as catalysts for supporting inclusive and sustainable global economic growth.
Innovation in Islamic finance has a close linkage with the new technology. The blockchain technology carries unlimited opportunities for Islamic finance to enable it to meet the Maqāṣid al Sharī῾ah. However, this aspect is not visible in the literature due to the tendency to connect blockchain with the cryptocurrencies. This study combined an insightful review of Maqāṣid al Sharī῾ah and ḥifẓ al māl along with technical analysis of blockchain to cater to the Islamic finance ethical innovation. This was a qualitative analytical research paper. It addressed the questions related to integrating the theories of Maqāṣid Al Sharī῾ah and Ḥifẓ al māl with the blockchain. The result was a futuristic vision for innovation in Islamic finance with the theme of preserving wealth using a combination of the salient features of blockchain technology and characteristics of Ibn ‘Ashur’s theory of ḥifẓ al māl for wealth and money. The study found that it is possible to create a matrix with the collaboration between the ḥifẓ al māl objectives, namely wealth circulation, justice, ownership protection, creating easiness, robustness and transparency, and the technical characteristics of blockchain, namely decentralization, immutability, transparency, and cryptographic hashing. Together, this approach has the potential for producing ethical, secure, and innovative Islamic finance solutions. This study falls under the contemporary literature that discusses Maqāṣid al Sharī῾ah and Ibn ‘Ashur’s theory of ḥifẓ al māl beyond its theoretical nature in combination with blockchain technology to cater to the growing requirements of innovation in Islamic finance as a part of Maqāṣid al Sharī῾ah’s sustainable ecosystem.
Digital currencies like Bitcoin and Ethereum are reshaping the financial landscape by challenging traditional banking and commerce. These technologies hold significant potential to enhance financial inclusion by providing access to underserved populations and streamlining cross-border payments, making transactions faster and more cost-effective. They also empower decentralized finance (DeFi), enabling innovative financial services without intermediaries. Blockchain, the foundation of digital currencies, facilitates secure, decentralized, and programmable systems, supporting key innovations like asset tokenization and Central Bank Digital Currencies (CBDCs). These advancements bridge the gap between digital and traditional financial systems, promoting efficiency and accessibility. Despite their promise, digital currencies face challenges, including cybersecurity threats, market volatility, and fragmented regulatory frameworks. Case studies on CBDCs and private-sector blockchain initiatives demonstrate viable integration pathways and underline the need for robust governance. By implementing balanced policies, stakeholders can harness the benefits of digital currencies while mitigating associated risks. These measures will be crucial to fostering a stable, inclusive, and innovative financial ecosystem that addresses global economic disparities and drives sustainable growth.
The integration of blockchain technology with cloud infrastructure is revolutionizing the global financial sector, fundamentally transforming traditional banking operations and services. This transformation encompasses enhanced security protocols, streamlined transaction processing, and improved regulatory compliance mechanisms through distributed ledger systems. The implementation of blockchainbased solutions has significantly impacted various aspects of banking, from crossborder payments to customer verification processes, while simultaneously reducing operational costs and improving service delivery. The adoption of smart contracts and automated systems has revolutionized traditional banking roles, necessitatingThe Role of Cloud Integration in Blockchain and Cryptocurrency Adoption: Implications for Global Financial Systems https://iaeme.com/Home/
Automated Program Repair (APR) for smart contract security promises to automatically mitigate smart contract vulnerabilities responsible for billions in financial losses. However, the true effectiveness of this research in addressing smart contract exploits remains uncharted territory. This paper bridges this critical gap by introducing a novel and systematic experimental framework for evaluating exploit mitigation of program repair tools for smart contracts. We qualitatively and quantitatively analyze 20 state-of-the-art APR tools using a dataset of 143 vulnerable smart contracts, for which we manually craft 91 executable exploits. We are the very first to define and measure the essential "exploit mitigation rate" , giving researchers and practitioners a real sense of effectiveness of cutting edge techniques. Our findings reveal substantial disparities in the state of the art, with an exploit mitigation rate ranging from a low of 29% to a high of 74%. Our study identifies systemic limitations, such as inconsistent functionality preservation, that must be addressed in future research on program repair for smart contracts.
Distributed ledger technology offers several advantages for banking and finance industry, including efficient transaction processing and cross-party transaction reconciliation. The key challenges for adoption of this technology in financial institutes are (a) the building of a privacy-preserving ledger, (b) supporting auditing and regulatory requirements, and (c) flexibility to adapt to complex use-cases with multiple digital assets and actors. This paper proposes a framework for a private, audit-able, and distributed ledger (PADL) that adapts easily to fundamental use-cases within financial institutes. PADL employs widely-used cryptography schemes combined with zero-knowledge proofs to propose a transaction scheme for a `table' like ledger. It enables fast confidential peer-to-peer multi-asset transactions, and transaction graph anonymity, in a no-trust setup, but with customized privacy. We prove that integrity and anonymity of PADL is secured against a strong threat model. Furthermore, we showcase three fundamental real-life use-cases, namely, an assets exchange ledger, a settlement ledger, and a bond market ledger. Based on these use-cases we show that PADL supports smooth-lined inter-assets auditing while preserving privacy of the participants. For example, we show how a bank can be audited for its liquidity or credit risk without violation of privacy of itself or any other party, or how can PADL ensures honest coupon rate payment in bond market without sharing investors values. Finally, our evaluation shows PADL's advantage in performance against previous relevant schemes.
Ilan Alon, Haakon Stole Klemetsen, Aušrinė Šilenskytė, Ilan Gildin
Purpose This study aims to explore the innovative governance structures enabled by blockchain-based decentralized autonomous organizations (DAOs) in the context of international business (IB). As nonhierarchical entities managed through collective voting and peer-to-peer interactions, DAOs challenge traditional assumptions of multinational corporation (MNC) governance. Design/methodology/approach The authors perform a literature review, which combines qualitative content analysis of both academic papers on DAO and whitepapers with quantitative analysis of bibliometrics using VosViewer. Findings The findings highlight DAOs’ ability to generate new research questions and offer a foundation for future studies on decentralized governance in IB. Through a bibliometric analysis of 73 papers from Web of Science and qualitative content analysis, the authors identify four primary research streams in the DAO literature. A deep dive into financial DAOs, or DeFi DAOs, reveals insights into their governance mechanisms and implications for the studies in the field of IB. Research limitations/implications Research on DAOs is in its early stages, and the practice in IB is nascent. As the regulatory, economic and technological landscape for DAOs changes, more research will be needed on the governance mechanisms and their sustainability. Originality/value This paper advances the field by providing a multilevel analysis of DAOs’ potential impact on IB, considering macro (country), meso (MNC/DPE) and micro (multicultural team and individual) levels.
John Stephan, Matej Pavlovic, Antonio Locascio, Benjamin Livshits
Zero-Knowledge (ZK) rollups have become a popular solution for scaling blockchain systems, offering improved transaction throughput and reduced costs by aggregating Layer 2 transactions and submitting them as a single batch to a Layer 1 blockchain. However, the computational burden of generating validity proofs, a key feature of ZK rollups, presents significant challenges in terms of performance and decentralization. Current solutions rely on centralized infrastructure to handle the computational tasks, limiting the scalability and decentralization of rollup systems. This paper proposes CrowdProve, a prover orchestration layer for outsourcing computation to unreliable commodity hardware run by a broad community of small provers. We apply CrowdProve to proving transaction batches for a popular ZK rollup. Through our experimental evaluation, we demonstrate that community proving can achieve performance comparable to, and in some cases better than, existing centralized deployments. Our results show that even systems utilizing modest hardware configurations can match the performance of centralized solutions, making community-based proof generation a viable and cost-effective alternative. CrowdProve allows both the rollup operator and community participants to benefit: the operator reduces infrastructure costs by leveraging idle community hardware, while community provers are compensated for their contributions.