Decentralized Finance (DeFi), a financial ecosystem without centralized controlling organization, has introduced a new paradigm for lending and borrowing. However, its capital efficiency remains constrained by the inability to effectively assess the risk associated with each user/wallet. This paper introduces the 'On-Chain Credit Risk Score (OCCR Score) in DeFi', a probabilistic measure designed to quantify the credit risk associated with a wallet. By analyzing historical real-time on-chain activity as well as predictive scenarios, the OCCR Score may enable DeFi lending protocols to dynamically adjust Loan-to-Value (LTV) ratios and Liquidation Thresholds (LT) based on the risk profile of a wallet. Unlike existing wallet risk scoring models, which rely on heuristic-based evaluations, the OCCR Score offers a more objective and probabilistic approach, aligning closer to traditional credit risk assessment methodologies. This framework can further enhance DeFi's capital efficiency by incentivizing responsible borrowing behavior and optimizing risk-adjusted returns for lenders.
Decentralized Finance (DeFi) is revolutionizing the way individuals and institutions engage with financial services by removing intermediaries and offering decentralized alternatives to traditional banking and finance systems. This paper explores the rapidgrowth and impact of DeFi on global financial systems, focusing on key protocols such as Uniswap, Aave, and Compound. Using both qualitative and quantitative methodologies, including case studies and comparative analyses, the research examines the evolution of DeFi in terms of Total Value Locked (TVL), transaction costs, security challenges, and user adoption. The findings reveal that DeFi platforms have experienced exponential growth in liquidity, with TVL across major protocols increasing from $50 million in January 2020 to over $100 billion by January 2024. Uniswap alone saw its TVL grow from $50 million to $15 billion during the same period. DeFi significantly reduces transaction costs, with cross-border fees averaging $7 on Uniswap, compared to $35 in traditional banks. However, Ethereum gas fees remain volatile, exceeding $50 during peak congestion periods. Despite these cost benefits, the study also identifies security as a major concern, with 22 significant security incidents reported in DeFi between2020 and 2023, resulting in substantial financial losses. Additionally, the lack of clear regulatory frameworks continues to pose challenges to broader adoption. This research concludes that while DeFi has the potential to disrupt traditional financial systems, its long-term success depends on addressing these technical and regulatory challenges. The adoption of Layer-2 scaling solutions, along with improvements in security and regulatory clarity, will be essential for ensuring the continued growth and stability of the DeFi ecosystem.
Hussin Chowdhury Md Kamran, Imtiyaj Uddin Shah Muhammad, Moon-Il Joo, Hee‐Cheol Kim
크라우드펀딩은 비즈니스, 발명, 교육, 의료, 사회적 대의 등 다양한 프로젝트를 지원하는 데 중요한 금융 솔루션으로 자리 잡고 있다. 그러나 기존 플랫폼은 투자자와 프로젝트 제작자의 개인 및 금융 정보를 보호하는 데 있어 여러 보안 취약점을 노출하고 있다. 본 연구는 크라우드펀딩 거래의 보안을 강화하고 탈중앙화를 실현하기 위해 블록체인 기술을 도입하였다. IPFS와 같은 탈중앙화 파일 저장 솔루션을 사용함으로써 데이터 보호를 강화하고, 중앙화된 클라우드 스토리지의 문제점을 해결하고자 한다. ESC(이더리움 스마트 계약)를 활용한 블록체인 기반 크라우드펀딩 프로토타입을 구축하며, 스마트 계약을 통해 사전 정의된 마일스톤에서 자금이 자동으로 해제되어 크라우드펀딩의 효율성과 신뢰성을 크게 향상시킨다. 블록체인 기술은 변경 불가능하고 투명한 원장을 제공하여 중개자에 대한 의존을 줄이고 운영 비용을 최소화한다. 또한, 탈중앙화된 시스템을 통해 단일 기관이 모든 권한을 가지지 않도록 하여 크라우드펀딩 생태계에서 공정성과 보안을 증진시킨다.
Luani Maria de Albuquerque Macário, Marielli Melo Soares de Morais
This study explores the interaction between smart contracts and quantum computing, mapping the main advantages, risks and vulnerabilities involved, in addition to analyzing the benefits of blockchain technology and its insertion in the Brazilian legal world. Smart contracts are contracts programmed in a blockchain structure, which do not depend on human actions to be fulfilled. The use of blockchain in Law makes it possible to store encrypted data, making it difficult to violate and alter information. However, Brazilian legislation has not yet regulated the use of these techniques. The article addresses the main advantages of smart contracts, such as business autonomy, private data security, elimination of data manipulation, reliability, and agility. It proposes measures to ensure the robustness of smart contracts and blockchain in the face of the imminent advancement of quantum computing. The methodology used was a critical analysis, in which it is aimed at proposing measures that ensure the robustness of smart contracts and blockchain in the face of the imminent reality of quantum computing, through a literature review. The relevance of this work lies in the need to anticipate and mitigate potential threats, ensuring that these technological innovations deliver on their promise of security and reliability in an increasingly digitized society. It is understood that smart contracts represent an evolution in the automation of contracts, with the potential to change the way contractual relationships occur in the legal system, bringing new parameters to the law.
Maria Jell‐Ojobor, Roland Russwurm, Josef Windsperger
ABSTRACT This study explores the implications of the introduction of blockchain technology for the governance of franchise networks. In light of the limited prior research on this topic, the study employs a twofold approach. It begins by identifying the central themes present in current research at the intersection of franchising and blockchain technology. Next, it examines existing instances of implementations of blockchain technology and connects them to corresponding value chain operations in the franchising context. The study takes a comprehensive approach, combining bibliometric analysis with a semisystematic literature review, to offer insights into blockchain technology's potential future impact on the franchise industry. Specifically, it shows that franchise network governance can benefit significantly from attributes of blockchain such as transparency, efficiency, and trust as well as from its various applications such as smart contracts and decentralized autonomous organizations.
The purpose of the research is to provide an overview of the legality and enforceability of smart contracts. The research aims to examine the legal implications of the use of smart contracts in agreements. The study used qualitative research. The type of this study is normative. The second primary legal are from journals, books, and news. The recognition of the validity of smart contracts can be achieved through the setting of special clauses in contracts that recognize their validity, especially in cross-border transactions that require the addition of choice of law and choice of jurisdiction clauses. Smart contracts offer a great opportunity to revolutionize business transactions and contract law with greater efficiency and autonomy. However, for this technology to be well integrated in the legal framework, it requires the development of regulations that address the challenges of legal validity, enforceability, jurisdiction, and data security. In Indonesia, although smart contracts are permitted, legal uncertainties in various jurisdictions indicate the need for more dynamic legal adaptation to support the development of this technology.
Muhammad HafizuddinSufia Sufian, Nur Amisha Sutan Syahril, Norhasliza Ghapa
The rapid evolution of cryptocurrency has prompted significant regulatory responses across the globe, particularly in Southeast Asia, where Malaysia, Indonesia, and Singapore are at the forefront of this transformation. This comparative analysis examines the regulatory frameworks governing cryptocurrency in these three nations, highlighting the unique approaches adopted by each country in response to the challenges and opportunities presented by digital currencies. Singapore is recognized for its progressive regulatory stance, which aims to foster innovation while ensuring consumer protection and financial stability. In contrast, Malaysia has implemented a more cautious approach, focusing on establishing a comprehensive legal framework that addresses the complexities of cryptocurrency transactions and their implications for the financial system. Meanwhile, Indonesia's regulatory landscape is characterized by a mix of enthusiasm for blockchain technology and concerns regarding potential risks, leading to a somewhat fragmented regulatory environment. This study employs a qualitative methodology, analysing primary and secondary data sources to assess the effectiveness of these regulatory frameworks in promoting cryptocurrency adoption while mitigating associated risks. The findings reveal that while Singapore's model may serve as a benchmark for regulatory best practices, Malaysia and Indonesia face distinct challenges that necessitate tailored regulatory solutions. Ultimately, this research contributes to the understanding of how regulatory frameworks can shape the cryptocurrency landscape in Southeast Asia, offering insights for policymakers and stakeholders navigating this dynamic market.
The rapid emergence of blockchain technology outside of cryptocurrency in financial applications. Blockchain, mostly known as the underlying technology backing decentralized currencies such as Bitcoin, is today being tapped for a range of other financial services by its underlying features: decentralization, transparency, and security. The research explores blockchain's role in advancing transaction processing, auditability, andinnovations such as decentralized finance and smart contracts that are changing traditional financial systems. The paper elaborates on how this technology benefits from efficiency relating to points of asset management, trade finance, and financing in the supply chain. It further goes into blockchain security and privacy challenges associated with these new technologies being adopted in areas such as these. This survey synthesizes recent insights to identify crucial opportunities and challenges for blockchains in the financial sector in bringing systemic change across global markets
This study examines the potential risks of emerging payment technologies and value transfer systems in facilitating terrorist activities. Through an analysis of publications, blogs, and websites associated with terrorist groups and their supporters, the research reveals a growing interest in leveraging cryptocurrencies like Bitcoin and online crowdfunding platform to support funding, planning, and implementation of terror attacks. While concrete evidence of large-scale cryptocurrency use by terrorist groups is limited, there are indications of links to several terror attacks globally. This study demonstrates the potential for cryptocurrencies to facilitate clandestine activities, utilizing a document published by ISIS that outlines instructions undetected. By analyzing this document, researchers highlighted the potential risks associated with the anonymous and decentralized nature of cryptocurrency transactions. The study adopted actor-network theory as its theoretical underpinning. The findings suggest that terrorist organizations are actively exploring new technologies to mitigate risks associated with traditional fund transfer methods, with some websites collecting donations in Bitcoin. The study recommends amongst others that the Law enforcement agencies must enhance their capabilities to track cryptocurrency transactions, which include training investigators in illicit finance investigations involving cryptocurrencies, recruiting experts in the field, and acquiring advanced IT systems despite the challenges.
Blockchain-based digital contracts have greatly energised multiple fields with their advantages of speed, effectiveness, openness, and security. In synergy, smart contracts provide frictionless transactions and further ensure supply chain integrity. A sum of these efficient, trustworthy agreements, therefore, transforms business and fosters creativity in a real-world demonstration with enhanced transparency, streamlined processes, and reduced reliance on intermediaries. This paper aims to analyse, from a legal domain, the applications of smart contracts within blockchain technology, as their future use, shall impact supply chain management, financial services, healthcare, Internet of Things (IoT) and various other areas. Data privacy, jurisdictional challenges, interoperability and migration from previous systems etc involve revamping or modification the laws, in order to reduce the scope of potential financial and systemic frauds, and environmental hazards to make the usage of the system more consumer-safe. Thus there is a significant gap in understanding their legal implications, particularly concerning enforceability, jurisdiction, and regulatory compliance. This research is conducted based on the Doctrinal Approach. The paper aims to analyze and provide an overview of legal implications in order to create public awareness and mitigate potential future risks. As industries increasingly adopt blockchain solutions, understanding the potential of smart contracts becomes crucial for researchers, practitioners, and policymakers.
Introduction. With the expansion of the application scope of cryptocurrency, the current enterprise accounting processing and the supervision of relevant departments are facing great challenges: due to the lack of corresponding accounting standards, enterprises holding cryptocurrency rely more on the judgment of enterprise accounting when conducting relevant business processing. The main purpose of this study is to clarify the specific standards for including cryptocurrency in accounting entity, and provide basic guiding principles for the handling of such assets in accounting records and financial reports. The specific objectives of this research include in-depth analysis of the core characteristics of encrypted assets in financial accounting and determination of their appropriate classification attributes. Methods. Thisstudy strictly follows the scientific and systematicinquirymethod, integrates the conventional research techniques such as analysis, synthesis and generalization, and uses statistical tools as an aid. In order to achieve the research goal, this study carefully screened and deeply analyzed the academic literature and publications in related fields, and adopted interpretation and analysis methods. Through careful content analysis, this study not only reveals the similarities and differences in the literature, but also gives clear guidance on how to properly handle cryptocurrency in financial statements. International Financial Reporting Standards (IFRS) and International Accounting Standards (IAS) serve as theoretical references to evaluate the applicability of cryptocurrency accounting, and provide important standards for considering its impact on financial reporting. Results. Although cryptocurrencies have gradually developed rapidly, the accounting principles still include the International Accounting Standards Board (IASB). The nature of cryptocurrency is complex, and it is difficult to determine how to conduct accounting treatment. This situation may make the omission of corporate accounting information disclosure, and the relevant investors will bear higher risks. It may also lead to related enterprises encountering bottlenecks when seeking listing opportunities, and turn to overseas markets to outflow of opportunities. Therefore, we should set appropriate accounting standards for cryptocurrencies as soon as possible. By combing the current Australia, Britain, the United States, Canada has issued encryption currency accounting guidelines, and the relevant provisions of the international accounting standards and the opinions of large accounting firms, the current encryption currency accounting theory exploration, for accounting entities hold encryption currency accounting recommendations. Perspectives. A promising direction for further research is to improve the methodology of accounting for the movement of cryptocurrency, taking into account the volatility and dynamism of the market. The procedure for controlling electronic transactions using cryptocurrencies to ensure public trust in them, to confirm the reliability of electronic information and the completeness of the display of generalized indicators in various forms of reporting requires additional scientific and applied developments.
Smart contracts are programming programs that, without any involvement of a reliable authority, can be reliably carried out by an internet of mutually distrusting nodes. Smart contracts, which are integrated into block chains, allow an agreement's terms to be automatically enforced without the need for a third party to be contacted. The advancement of technology has been continuing for a while. Technology's advancement has made it possible for it to enter the legal sector and, with it, the complementary conflict resolution sector. Given this, the writing aims to accomplish three goals. It starts by discussing the arbitral framework, which does not categorically prohibit the use of new technology during arbitral procedures. Second, it looks at how arbitration and new technologies like block chain technology, intelligent contracts, large-scale data, intelligent machines, and crypto currency work together. It suggests that whereas advances in technology improve and expedite the resolution of disputes, the arbitration process offers protection to the tech sector and these developing technologies. The key characteristics of block chain technology that make it one of the most revolutionary technologies today are its decentralization, self-control, peer-to-peer relationships, fixed records, and time stamps. This article, therefore, focuses on the use of block chain technology and its crucial role in the digitalization of land records within the context of India. However, the lack of widespread adoption of smart contracts is primarily due to users' lack of clarity about whether they could enforced as relationships under state contract laws nowadays in operation.
This study addresses the growing importance of promoting blockchain technology and cryptocurrency adoption within the financial sector, particularly among Malaysian millennials. Despite its significance, there is limited research on millennials' acceptance of blockchain-based financial transactions in Malaysia. This study aims to bridge this gap by exploring critical behavioural factors that impact cryptocurrency usage within this demographic. To gather insights, a survey was conducted among Malaysian millennials, resulting in 110 fully completed questionnaires, which were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM 4.0). The findings reveal four primary drivers influencing millennials’ adoption of blockchain-based applications: security and control, transaction processing, perceived usefulness, and attitude. Notably, attitude emerged as the most influential factor, explaining 71.6 percent of the variance in cryptocurrency acceptance. These results underscore the complex interplay of factors that shape millennials' acceptance of blockchain technology and cryptocurrency in financial transactions. Consequently, identifying these acceptance factors is crucial for industry players seeking to understand and cater to millennials’ preferences in digital finance. To support these insights, this study proposes an innovative model that integrates the Technology Acceptance Model (TAM) with specific external variables related to blockchain technology characteristics, such as security control and transaction processing, providing a comprehensive framework for future research and industry applications.
Blockchain technology has rapidly emerged with a multitude of applications, among which smart contracts have garnered considerable attention. Smart contracts represent a promising solution for streamlining trade and business transactions between untrusted parties without intermediaries. These self-executing pieces of code automatically execute predefined actions when specific conditions are met. Despite the growing enthusiasm for blockchain and smart contracts, researchers believe this powerful combination has not yet reached its full potential. Hence, a systematic study is conducted to explore the various facets of blockchain-based smart contracts comprehensively. The research follows the PRISMA framework and employs two primary approaches: bibliometric analysis and systematic literature review. The process was initiated by formulating targeted search queries within the Scopus database, identifying a total of 1,949 publications spanning from January 2019 to August 2023. Subsequently, a bibliometric analysis was conducted on these publications using VOSviewer and Biblioshiny. Further, the full text of these publications was meticulously screened to isolate those with a significant focus on smart contracts. This led to the identification of 48 publications, each offering unique insights into various smart contract applications. Upon further examination, it was observed that the majority of these publications held rankings within the China Computer Federation, which refers to the qualitative research work in this domain. The study concludes with the current state of blockchain-based smart contracts, their platforms, applications, and challenges and reveals the substantial potential in handling tasks with predefined conditions and security requirements.
This legal research explores the jurisprudential aspects of smart contracts in the context of Jordanian civil legislation. Smart contracts, which are digital programs based on blockchain technology, have emerged as a disruptive force with the potential to revolutionize traditional contractual relations. They autonomously execute binding agreements by adhering to pre-programmed instructions when specific conditions are met, thereby obviating the need for intermediaries. The growing global prominence of smart contracts makes their compatibility with and implications for the legal framework in Jordan an imperative subject of inquiry. Nevertheless, the integration of smart contracts into the existing legal framework presents distinctive challenges, especially within the milieu of Jordanian civil legislation. This research paper aims to conduct a comprehensive analysis of the stance of Jordanian civil legislation regarding smart contracts. By evaluating the compatibility between smart contracts and prevailing legal structures and an exploration of potential ramifications, this study contributes to the discussion concerning the convergence of technological innovation and legal frameworks within the Jordanian context. To achieve this goal, the study utilizes a descriptive, inductive, and analytical approach. The study concluded that the implementation of smart contracts presents legal challenges related to confirming digital mutual consent, aligning legal definitions with blockchain assets, and addressing enforceability concerns associated with self-execution. However, the study puts forth a range of recommendations, with the most significant being the development of mechanisms within smart contracts to confirm the mutual consent of contracting parties through the use of digital identity verification tools and electronic signatures.
The convergence of blockchain technology with Internet of Things (IoT) security frameworks represents a significant advancement in addressing modern cybersecurity challenges. As IoT networks expand to encompass billions of connected devices, traditional centralized security approaches prove increasingly inadequate in managing the scale, complexity, and heterogeneity of these systems. This paper provides a comprehensive analysis of blockchain-IoT integration, examining how distributed ledger technology can enhance IoT security through immutable device identity, decentralized architecture, and automated policy enforcement. Through extensive literature review spanning recent research and implementations, we investigate both the transformative potential and significant implementation challenges, including standardization issues, resource constraints, and privacy concerns. The research also explores emerging solutions and future directions, particularly in consensus mechanism optimization, hybrid architectures, and the integration of edge computing. Our findings indicate that while blockchain technology offers promising solutions for critical IoT security requirements, successful implementation demands careful consideration of resource limitations, scalability needs, and standardization efforts.
O presente trabalho tem como objetivo analisar a diferença entre os Smart Contracts e os Smart Legal Contracts, seus requisitos de validade e compreensão quanto à sua existência e aplicação. Neste sentido, pretende-se evidenciar o conceito atualmente atribuído a Smart Contract e Smart Legal Contract, qual sua natureza. Até pouco tempo atrás estávamos acostumados a utilizar apenas documentos firmados manualmente pelas partes, no entanto, em decorrência do desenvolvimento da sociedade, que foi abruptamente acelerado no período pandêmico, processos como assinaturas eletrônicas e digitais em documentos tornaram-se corriqueiros, com o intuito de facilitar as operações, sem deixar de atribuir validade e segurança jurídica às transações comerciais. Sendo assim, podem os Smart Legal Contracts ser equiparados a tais procedimentos em questões de inovação e eficiência? As fontes de pesquisa utilizadas serão: atos normativos, contratos e doutrina nacional e estrangeira que verse sobre o tema.
Mojtaba Eshghie, Viktor Åryd, Cyrille Artho, Martin Monperrus
Structured code differencing is the act of comparing the hierarchical structure of code via its abstract syntax tree (AST) to capture modifications. AST-based source code differencing enables tasks such as vulnerability detection and automated repair where traditional line-based differencing falls short. We introduce SoliDiffy, the first AST differencing tool for Solidity smart contracts with the ability to generate an edit script that soundly shows the structural differences between two smart-contracts using insert, delete, update, move operations. In our evaluation on 353,262 contract pairs, SoliDiffy achieved a 96.1% diffing success rate, surpassing the state-of-the-art, and produced significantly shorter edit scripts. Additional experiments on 925 real-world commits further confirmed its superiority compared to Git line-based differencing. SoliDiffy provides accurate representations of smart contract evolution even in the existence of multiple complex modifications to the source code. SoliDiffy is made publicly available at https://github.com/mojtaba-eshghie/SoliDiffy.
Asaduddin Abdullah, Arif Satria, Heti Mulyati, Yandra Arkeman · 5 authors
The COVID-19 pandemic has revealed weaknesses in traditional supply chain finance systems, highlighting the need for digital change. Blockchain technology, with its ability to create secure and transparent records of transactions, offers a potential solution. This study uses bibliometric analysis and a literature review to examine research on blockchain-enabled supply chain finance, drawing on a database of 446 articles from ScienceDirect and Scopus. The findings show a growing interest in how blockchain can improve transparency, efficiency, and security in supply chain finance, addressing challenges like information asymmetry. This study suggests future research should focus on real-world applications of blockchain, how it can be used with other technologies, regulations and governance, and the social and environmental impacts of blockchain-based supply chain finance. This research also highlights the different priorities of the Global North and South in blockchain-enabled supply chain finance. The North focuses on efficiency and traceability, while the South emphasizes adding value and transparency. A lack of research on fair pricing, especially in the Global South, points to a critical gap that future research needs to address to ensure fairness in global trade.
Blockchain as a frontier digital technology provides new opportunities for innovation. This paper builds a theoretical framework utilizing the Resource-Based View (RBV), and empirically examines the impact of blockchain application on enterprise innovation, based on panel data from Chinese listed companies spanning from 2007 to 2020. This paper finds that the adoption of blockchain applications significantly promotes enterprise innovation, through mechanisms of improving operational efficiency and expanding operational scope. With regard to contextuality, the positive effect of blockchain applications on innovation is more pronounced in enterprises with higher levels of technological and capital accumulation. With regard to temporality, innovation at faster paces can better realise the benefits of blockchain applications. This paper provides robust empirical evidence derived from a large sample, thereby enhancing our understanding of this dynamic relationship and suggesting directions for future research. • Blockchain application can significantly promote enterprise innovation. • Blockchain boosts enterprise innovation via improved efficiency and scope expansion. • Enterprises with higher levels of technological and capital accumulation can exploit this impact better. • Innovation at faster paces can realise this impact better.
In this study, the author focuses on how cryptocurrency and blockchain technology can be used to improve delivery of international aid since traditional methods include problems such as corruption, inefficiency and lack of transparency. The main research question addresses the question of how cryptocurrency could enhance efficiency, enhance transparency, accountability, and fight corruption in the dispensation of aid. The authors performed a qualitative content analysis of data collected from multiple articles, reports, and case studies including World Food Programme and United Nations Children's Fund(UNICEF).The study shows that blockchain’s distributed digital ledger minimizes misappropriation of funds risk, maintains real-time tracking; cryptocurrencies, specifically stablecoins, are more effective in real and low-cost transactions. Nevertheless, the work also points to the threats evident in legal and regulatory frameworks, low levels of digital literacy, and technological constraints. In conclusion, if all the challenges are solved, the cryptocurrency will enable the complete redesign of the distribution of the funds for aid.