The article examines the essence of electronic money as an economic and legal phenomenon. The relevance of the introduction of innovative technologies in the financial development of modern society, which affect aspects of human life, has been determined. Blockchain technology is highlighted as one of the components of key innovations in the field of digital money. The impact of blockchain on the country’s payment system is substantiated. Blockchain functions are revealed, which open new horizons for the applications of technologies in various fields, making the world more efficient, safer and decentralized. Advantages and disadvantages of electronic money are defined and analyzed. The need to implement measures that would contribute to the mass spread of electronic money in Ukraine is substantiated. The prospects for the economy, which blockchain opens up for the development of decentralized business models, for changing the sphere of finance, are analyzed.Therefore, digital technologies are becoming a necessary cjmponent for the development of the modern economy and financial system. However, their implementation must take into account risks and ensure a high level of security and stability of the financial system. For example, the application of blockchain technologies can significantly simplify and ensure the security of financial transactions. It is also worth exploring the possibilities of using artificial intelligence and data analytics to improve financial decision-making. It is important to actively research and develop new technologies and approaches to ensure the safety and stability of the financial system in this new digital world.
Blockchain technology represents a significant innovation with far-reaching implications across multiple industries, having initially emerged as the backbone of Bitcoin to enable secure, decentralized digital transactions. Its decentralized structure, which replaces centralized databases with multiple shared copies across nodes, enhances security and reduces the risk of data breaches. Despite its growing use in banking, finance, supply chains, and other sectors, a gap exists in fully understanding its transformative potential in improving business processes. This research aims to analyze blockchain’s impact on the security, efficiency, and transparency of digital transactions. By employing a comparative analysis of blockchain applications across industries, we find that its decentralized, encrypted ledger system significantly reduces fraud risk and improves transactional efficiency. These results highlight blockchain’s role as a critical tool for future digital economies, with broader implications for enhancing trust and security in various sectors.
Decentralized Finance, or DeFi, is a disruptive force in the financial industry, using blockchain technology to provide financial services that are accessible, open and transparent.Technologies of Artificial Intelligence (AI), particularly deep learning, are utilized in various financial tasks such as algorithmic trading, fraud detection, and risk assessment.Artificial Intelligence-driven Decentralized Finance (AI-DeFi) aims to enhance efficiency, security, and accessibility of decentralized financial systems by integrating AI technologies.This paper proposes a framework that combines AI and DeFi which contains the layers of Automated Market Makers (AMMs), yield farming and lending, and portfolio management.The AMM layer offers liquidity, asset pricing, swap execution, fee collection, and impermanent loss mitigation.Yield farming provides liquidity to decentralized exchanges or lending protocols, while lending platforms lock collateral for security and manage credit risks.DeFi portfolio management involves asset selection, risk management, and performance tracking..This paper also provides implementation details to increase reproducibility of the proposed framework.
The use of smart contracts in areas such as finance, supply chain management, and the Internet of Things has significantly advanced blockchain technology. However, once deployed on the blockchain, smart contracts cannot be modified or revoked. Any vulnerabilities can lead to severe economic losses and data breaches, making pre-deployment vulnerability detection critically important. Traditional smart contract vulnerability detection methods suffer from low accuracy and limited reusability across different scenarios. To enhance detection capabilities, this paper proposes a smart contract vulnerability detection method based on heterogeneous contract semantic graphs and pre-training techniques. Compared to the conventional graph structures used in existing methods, heterogeneous contract semantic graphs contain richer contract information. By integrating these with pre-trained models, our method exhibits stronger vulnerability capture and generalization capabilities. Experimental results show that this method has improved the accuracy, recall, precision, and F1 value in the detection of four widely existing and harmful smart contract vulnerabilities compared with existing methods, which greatly improves the detection ability of smart contract vulnerabilities.
Abstract Health insurance plays a vital role during medical emergencies in the coverage against medical expenses. Insurance fraud is an international challenge that affects most economies worldwide. Government and private companies offer many insurance schemes. The successful implementation of numerous health insurance programs offered for the public by and large are often threatened by corruption, fraud, and numerous other data‐related issues. Further the procedure for acclaiming the insurance money is not only critical in terms of verification of claims but tedious and time consuming also. To help redress these problems, blockchain technology can be utilised as is it offers improved security, transparency, auditability, privacy, accountability along with many other advantages. The goal is to create and implement a blockchain‐based solution for efficient functioning of insurance system and to prevent such health insurance systems from going bankrupt. The authors have proposed an insurance claim model, MedBlockSure using blockchain architecture for creating interoperability between the insurer, the hospital and the insurance company. The model will aid in maintaining transparency between the insurer and the company while eliminating the requirement of middlemen or agents. The conceptual view of the proposed system using sequence and use case diagrams and data management framework and smart claim processing system is demonstrated.
Bianca-Elena Ialangi, Costin Carabaș, Nicolae Ţăpuş, Dinu Țurcanu
Currently, applications called Smart Contracts have taken a considerable leap in blockchain technology. Achieving transaction automation is a huge success that can have many uses. Like any technology in its infancy, there are many vulnerabilities that attackers can exploit. The paper aims to create a modular solution of a security framework for smart contracts in the MultiversX blockchain: a static analyser that can currently identify three vulnerabilities for smart contracts written in the Rust programming language. This tool can be helpful because the development and testing before smart contracts reach the blockchain are done by people, which means that human error can always occur. The objective is to minimize this unfortunate event by automating contract verification in the early stages of development. The encouraging results provide the conviction of an application that will have significant utility, whilst leaving room for improvements in the future.
Ovaj diplomski rad istražuje volatilnost kriptovaluta kroz analizu ključnih financijskih rizika. Na početku rada pruža se detaljan pregled blockchain tehnologije i povijesti kriptovaluta, te se raspravlja o njihovim karakteristikama i razlikama u odnosu na tradicionalne metode plaćanja. Također u radu se daje pregled sigurnosnih rizika povezanih s kriptovalutama i izazovima koje donosi njihova regulacija i analizira trenutne trendove, te se istražuju mogući scenariji za budućnost kriptovaluta. U analizi volatilnosti kriptovaluta korišteni su ključni pokazatelji financijskog rizika kao što su standardna devijacija, varijanca, korelacija i beta koeficijent. Rad uspoređuje volatilnost odabranih kriptovaluta, uključujući Bitcoin, Ethereum, Binance Coin, XRP i Litecoin, koji se uspoređuju s indeksom S&P 500. Rezultati pokazuju da, iako kriptovalute nude potencijalno visoke prinose, one također nose značajan rizik zbog svoje izrazite volatilnosti. Ova analiza pruža dublje razumijevanje rizika povezanih s ulaganjem u kriptovalute i ističe važnost pažljivog razmatranja tih rizika prilikom donošenja investicijskih odluka. Iako su kriptovalute inovativan i privlačan oblik imovine, njihova nestabilnost u usporedbi s tradicionalnim financijskim instrumentima zahtijeva oprez i temeljitu analizu prije ulaganja.
This study explores the adoptability of cryptocurrency within the Islamicfinancial system, a topic of substantial debate among scholars and practitioners. Given thedecentralized nature of cryptocurrency, its acceptance within the conventional and Islamicfinancial systems presents unique challenges. To ascertain the legitimacy and possibleadoptability of cryptocurrency under Sharīʿah law, this paper employs qualitative researchmethods, using in-depth interviews of twenty-four Sharīʿah scholars. These scholars,selected through purposive and snowball sampling techniques, possess expert knowledgeof both cryptocurrency and the Islamic financial system. The results revealed that theacceptability of cryptocurrency in Sharīʿah-compliant financial systems is contingent onits centralization and its function as a store of value, aligning with the objectives (maqasid)of Sharīʿah. Cryptocurrency's lack of intrinsic value necessitates its backing by a centralauthority or asset to mitigate risks and potential fraud. This research offers valuableinsights into the considerations required for cryptocurrencies' adoption in Islamic finance,contributing to the ongoing debate on their legitimacy under Sharīʿah law.
One of the most widely adopted forms of information technology application today is electronic trade through the internet network to make transactions. This transaction system was initially centralized, but with the risk of system failure and hacking, distributed systems such as blockchain were developed to improve security and efficiency. Blockchain also gave birth to derivative technologies such as smart contracts, automated blockchain-based digital agreements. Despite offering many advantages, the anonymity and decentralization of smart contracts raise concerns of misuse for illicit activities such as money laundering. Therefore, regulatory updates in Indonesia are needed to regulate the validity of smart contracts and money laundering actions through this technology. This article analyses the validity and regulation of smart contracts and efforts to implement the AML system in blockchain-based transactions in Indonesia.
Claudia Ovaliani Putri, Jacob Williams, Luna Anastasya, Dyah Juliastuti
The rapid advancement of technology in the digital era has prompted many companies to develop their businesses in line with current trends, one of which is by applying blockchain technology to smart contracts. This technology is a derivative of Cryptocurrency, which has become a trend in asset trading. The blockchain system in Cryptocurrency enables smart contracts to be designed to operate autonomously through blockchain technology using programming languages translated into legal language. This study aims to analyze the legality of using blockchain technology for smart contracts as legal products in the digital era and to assess the effectiveness of blockchain technology on smart contracts in business agreements between companies in Indonesia. This research employs a normative juridical method, focusing on the prevailing legal regulations related to the legality and effectiveness of using blockchain technology in smart contracts. The study concludes that the potential of blockchain for smart con- tracts is significant, given its efficiency and practicality, which can also reduce transaction costs. However, its implementation still needs to adapt to existing technologies, be easily accepted by society, and have stronger legal guarantees in its application.
Che Wang, Jiashuo Zhang, Jianbo Gao, L. Xia · 6 authors
Smart contracts are susceptible to being exploited by attackers, especially when facing real-world vulnerabilities. To mitigate this risk, developers often rely on third-party audit services to identify potential vulnerabilities before project deployment. Nevertheless, repairing the identified vulnerabilities is still complex and labor-intensive, particularly for developers lacking security expertise. Moreover, existing pattern-based repair tools mostly fail to address real-world vulnerabilities due to their lack of high-level semantic understanding. To fill this gap, we propose ContractTinker, a Large Language Models (LLMs)-empowered tool for real-world vulnerability repair. The key insight is our adoption of the Chain-of-Thought approach to break down the entire generation task into sub-tasks. Additionally, to reduce hallucination, we integrate program static analysis to guide the LLM. We evaluate ContractTinker on 48 high-risk vulnerabilities. The experimental results show that among the patches generated by ContractTinker, 23 (48%) are valid patches that fix the vulnerabilities, while 10 (21%) require only minor modifications. A video of ContractTinker is available at https://youtu.be/HWFVi-YHcPE.
How AI models should deal with political topics has been discussed, but it remains challenging and requires better governance. This paper examines the governance of large language models through individual and collective deliberation, focusing on politically sensitive videos. We conducted a two-step study: interviews with 10 journalists established a baseline understanding of expert video interpretation; 114 individuals through deliberation using InclusiveAI, a platform that facilitates democratic decision-making through decentralized autonomous organization (DAO) mechanisms. Our findings reveal distinct differences in interpretative priorities: while experts emphasized emotion and narrative, the general public prioritized factual clarity, objectivity, and emotional neutrality. Furthermore, we examined how different governance mechanisms - quadratic vs. weighted voting and equal vs. 20/80 voting power - shape users' decision-making regarding AI behavior. Results indicate that voting methods significantly influence outcomes, with quadratic voting reinforcing perceptions of liberal democracy and political equality. Our study underscores the necessity of selecting appropriate governance mechanisms to better capture user perspectives and suggests decentralized AI governance as a potential way to facilitate broader public engagement in AI development, ensuring that varied perspectives meaningfully inform design decisions.
The research conducts a systematic literature review to critically analyse the complex interrelations among perception, adoption, and investment decision-making in the cryptocurrency markets. The study synthesizes global research findings, highlighting how investor perception and adoption patterns impact investment behaviour. Additionally, the review evaluates the methodologies utilized in existing studies, providing valuable insights into their strengths and limitations. This comprehensive analysis consolidates current knowledge in understanding the mentioned interrelations, identifies key gaps in existing research as numerous aspects remain unexplored and suggests potential directions for future studies, aiming to deepen the understanding of cryptocurrency market dynamics and enhance investment strategies.
Cryptocurrencies are associated with a pressing problem for society – electricity consumption. This problem is particularly relevant when electricity is used from nonrenewable sources. Cryptocurrencies have investment potential but due to the environmental impact, sustainability-minded investors may refrain from investing in this asset. The main purpose of this paper is to identify the sentiment in the green transformation of cryptocurrencies. Cryptocurrency communities, which consist of investors, cryptocurrency developers or enthusiasts interested in this asset, often appear on the Internet or on various social media. Users share information and express their opinions on the trends of the cryptocurrency market on various social platforms. This study uses sentiment analysis to identify the sentiment of existing or prospective users in the green transformation of cryptocurrencies. The results of this study contribute to research that helps investors predict trends in the cryptocurrency market when making investment decisions. The methods of this study are the analysis of the scientific literature and the analysis of sentiment using Matlab software.
A B M Mehedi Hasan, Shahid Alam, Sufyan Habib, Mohammed Arshad Khan
This research aims to investigate the factors shaping the investment choices of individuals in Saudi Arabia concerning cryptocurrencies, particularly focusing on the influence of the Fear of Missing Out (FOMO) psychological phenomenon. This study employs a mixed-methods approach to comprehend the factors influencing Saudi investors' decisions in the cryptocurrency realm. Quantitative surveys are conducted to gauge perceptions of risk, return, regulatory factors, and social influence. Additionally, qualitative interviews delve into the nuanced interplay of these elements and the impact of FOMO on decision-making. Integrating the Theory of Planned Behavior and Behavioral Finance theories, this research offers a holistic understanding of cryptocurrency investment determinants. The combined quantitative and qualitative methods provide a comprehensive view, enabling an in-depth analysis of the subject matter. The study reveals that Saudi Arabian investors' decisions regarding cryptocurrencies are significantly influenced by multiple factors, including perceived risk, potential return, regulatory environment, and social dynamics. FOMO emerges as a crucial psychological factor, interacting with these influences and driving decision-making. This research underscores the intricate interplay between these factors and FOMO, shedding light on the dynamics of cryptocurrency investment choices in the Saudi Arabian market. The findings hold implications for policymakers, financial institutions, and investors seeking deeper insights into this evolving landscape. Drawing from the Theory of Planned Behavior and Behavioral Finance, it examines perceived risk, return, regulatory factors, and social influence in influencing cryptocurrency investment choices among Saudi investors, focusing on the influence of Fear of Missing Out (FOMO). The research outcome provides insights for policymakers, financial institutions, and investors seeking to understand cryptocurrency investment dynamics in Saudi Arabia.
Background: Health 3.0 allows decision making to be based on longitudinal data from multiple institutions, from across the patient's healthcare journey. In such a distributed setting, blockchain smart contracts can act as neutral intermediaries to implement trustworthy decision making. Objective: In a distributed setting, transmitted data will be structured using standards (such as HL7 FHIR) for semantic interoperability. In turn, the smart contract will require interoperability with this standard, implement a complex communication setup (e.g., using oracles), and be developed using blockchain languages (e.g., Solidity). We propose the encoding of smart contract logic using a high-level semantic Knowledge Graph, using concepts from the domain standard. We then deploy this semantic KG on blockchain. Methods: Off-chain, a code generation pipeline compiles the KG into a concrete smart contract, which is then deployed on-chain. Our pipeline targets an intermediary bridge representation, which can be transpiled into a specific blockchain language. Our choice avoids on-chain rule engines, with unpredictable and likely higher computational cost; it is thus in line with the economic rules of blockchain. Results: We applied our code generation approach to generate smart contracts for 3 health insurance cases from Medicare. We discuss the suitability of our approach - the need for a neutral intermediary - for a number of healthcare use cases. Our evaluation finds that the generated contracts perform well in terms of correctness and execution cost ("gas") on blockchain. Conclusions: We showed that it is feasible to automatically generate smart contract code based on a semantic KG, in a way that respects the economic rules of blockchain. Future work includes studying the use of Large Language Models (LLM) in our approach, and evaluations on other blockchains.
William Fernando Martínez Luna, Ana María Moreno Ballesteros, Edgar José Ruiz Dorantes
NFTs (non-fungible tokens) enable the commercialization of goods and services through blockchain technology, enhancing the security, transparency, and speed of transactions. The primary challenge NFTs face is their connection to the underlying asset, ensuring that transferring the token also means transferring the linked asset. This interdisciplinary article examines the technical and legal challenges of creating and linking a digital asset to an NFT. To explain the binding process, an NFT associated with a digital artwork was created, and relevant internal and uniform legal regulations were analyzed.
Blockchain technology (BCT) is regarded as one of the most important and disruptive technologies in Industry 4.0. However, no comprehensive study addresses the contributions of BCT adoption (BCA) on some special business functionalities projected as financial variables like BCA integrity, transparency, etc. Therefore, the primary objective of this study was to close this theoretical gap and determine how BCA has contributed to the four business sectors that were selected since FinTech had the greatest potential in these domains. The PRISMA approach, a systematic literature review model, was used in this work to make sure that the greatest number of studies on the topic were accessed. The PRISMA model’s output helped identify relevant publications, and an analysis of these studies served as the foundation for this paper’s findings. The findings reveal that BCA for companies with a disrupting financial technology (FinTech) attitude can help in securing corporate transaction transparency; offer knowledge, same-data, and information sharing; enhance fidelity, integrity, and trust; improve organizational procedures; and prevent fraud with cyber-hacking protection and fraudulence suspension. Moreover, blockchain’s smart contract utilization feature offers ESG and sustainability functionality. This paper’s novelty is the projection to four business sectors of the three-layer research sequence: (i) financial variables operated as BCA functionalities, (ii) issues, risks, limitations, and opportunities associated with the financial variables, and (iii) implications, theoretical contributions, questions, potentiality, and outlook of BCA/FinTech issues. And the ability of managers or practitioners to reference this sequence and make decisions on BCA matters is considered a key contribution. The proposed methodology provides business practitioners with valuable insights to reevaluate their economic challenges and explore the potential of blockchain technology to address them. This study combined a systematic literature review (SLR) with qualitative analysis as part of a hybrid research approach. Quantitative analysis was carried out on all 835 selected papers in the first step, and qualitative analysis was carried out on the top-cited papers that were screened. The current work highlights the key challenges and opportunities in established blockchain implementations and discusses the outlook potentiality of blockchain technology adoption. This study will be useful to managers, practitioners, researchers, and scholars.
Oladipo Sopitan, Kayode S Adetola, Azeezat Wahab Morenikeji, Joye Ahmed Shonubi · 5 authors
Blockchain combined with smart contracts in banking and business dealings has emerged as an innovative method to enhance financial transparency while reducing potential risks. The earlier decentralized immutable ledger known as blockchain ensures transaction security and verification while minimizing fraudulent activities and operational shortcomings. Smart contracts function as self-expiring agreements withBlockchain and Smart Contracts for Financial Transparency and Risk Mitigation in Banking and Business Transactions https://iaeme.com/Home/journal/IJBC 2
Billions of dollars have been lost due to vulnerabilities in smart contracts. To counteract this, researchers have proposed attack frontrunning protections designed to preempt malicious transactions by inserting "whitehat" transactions ahead of them to protect the assets. In this paper, we demonstrate that existing frontrunning protections have become ineffective in real-world scenarios. Specifically, we collected 158 recent real-world attack transactions and discovered that 141 of them can bypass state-of-the-art frontrunning protections. We systematically analyze these attacks and show how inherent limitations of existing frontrunning techniques hinder them from protecting valuable assets in the real world. We then propose a new approach involving 1) preemptive hijack, and 2) attack backrunning, which circumvent the existing limitations and can help protect assets before and after an attack. Our approach adapts the exploit used in the attack to the same or similar contracts before and after the attack to safeguard the assets. We conceptualize adapting exploits as a program repair problem and apply established techniques to implement our approach into a full-fledged framework, BACKRUNNER. Running on previous attacks in 2023, BACKRUNNER can successfully rescue more than \$410M. In the real world, it has helped rescue over \$11.2M worth of assets in 28 separate incidents within two months.
The advent of cryptocurrencies has revolutionized the financial landscape, offering a new and innovative way for individuals to invest and manage their wealth. Investing in cryptocurrencies, such as Bitcoin, Ethereum, and others, has numerous advantages that make it an attractive option for those seeking to diversify their portfolios. One of the primary benefits of investing in cryptocurrencies is their potential for high returns. As the popularity and adoption of cryptocurrencies continue to grow, their value can fluctuate significantly, providing investors with substantial profits. Additionally, cryptocurrencies offer a level of liquidity and accessibility that is unmatched by traditional assets, allowing investors to buy and sell quickly and easily. This article aims to explore the advantages of investing in cryptocurrencies and their perspective in the future. We will examine the benefits of diversifying investment portfolios with cryptocurrencies, the potential for high returns, and the potential risks involved. Furthermore, we will discuss the current state of the market and the future prospects of cryptocurrencies.
This study explores the balance between data privacy and regulatory compliance in blockchain-based financial systems, focusing on privacy-enhancing technologies (PETs) such as Zero-Knowledge Proofs (ZKPs) and multiparty computations (MPCs). Through a comprehensive methodology combining literature review, comparative analysis, and empirical testing on the Ethereum test network, the research reveals significant trade-offs. Implementing ZKPs increased transaction times from 5 seconds to 12 seconds and gas fees from 0.02 ETH to 0.05 ETH, while computational load rose by 60%, highlighting the impact on scalability and efficiency. Chi-Square tests and regression analysis uncovered notable algorithmic biases, with low-value accounts experiencing 15% fewer transaction approvals and small mining pools receiving 20% fewer rewards than larger counterparts. Additionally, MPCs, while offering robust privacy, increased communication overhead by 35%, posing scalability challenges. The study recommends adopting a tiered privacy approach, implementing basic privacy measures for low-sensitivity transactions, and advanced technologies like ZKPs for high-sensitivity transactions while optimizing ZKPs to reduce their computational burden and enhance transaction speeds, and integrating artificial intelligence to detect and mitigate algorithmic biases in blockchain systems. Future research should also explore hybrid privacy solutions that combine the strengths of different PETs, such as ZKPs and MPCs, to achieve both robust privacy and high efficiency. Furthermore, investigating quantum-resistant cryptographic methods is crucial to safeguarding blockchain systems against emerging threats. These insights provide valuable guidance for financial institutions, blockchain developers, and policymakers, promoting the development of blockchain-based financial systems that optimize data privacy while maintaining system performance and regulatory compliance.
Social media and the digital era have had a big impact on investing decisions, particularly in the cryptocurrency space. This study investigates how social media, financial literacy, and digital literacy affect DKI Jakarta Millennials and Generation Z's decision-making when making investments. The study looks at the mental processes that underlie investing decisions and is based on theories of reasoned action and planned behavior. The study emphasizes how important financial literacy is for reducing risks and helping people make wise decisions. Digital literacy, on the other hand, improves one's capacity to navigate and evaluate large volumes of financial data. Social media is recognized as a key influencer that shapes public opinion and propels financial trends. The study's quantitative approach makes use of structural equation modelling (SEM) to examine data from an DKI Jakarta survey given to Millennials and Generation Z. The findings show that by improving access to and analysis of financial information, digital literacy has a positive impact on investment decisions. The study finds that making wise investment decisions in the cryptocurrency market requires a thorough understanding of social media, digital literacy, and financial literacy. Keywords: Digital Literacy, Financial Literacy, Social Media, Investment Decisions and Cryptocurrency.
Khushnuma Khan, Matloob Ullah Khan, Neha Gupta, Garishma Gulyani · 7 authors
In this research paper, we investigate the variables that impact the behavioural intention of cryptocurrency investors in India. The analysis of the data was done using smart partial least square-structural equation modelling. The study was carried out in India using purposive sampling and included investors who had a fundamental understanding of cryptocurrency. It has been established that factors such as financial literacy, facilitating conditions, social influence, effort expectancy and performance expectancy have a significant influence on the investment behaviour of these individuals. The study looks at how the Unified Theory of Acceptance and Use of Technology model with financial literacy affects the behaviour of cryptocurrency investment.