Ahmed Al-Dmour, Rand Al-Dmour, Hani Al-Dmour, Ahmad Samed AlâAdwan
This research explores the impact of blockchain technology on the quality of Accounting Information Systems (AIS) and subsequent business performance in Jordan's commercial banking sector. By surveying 388 participants from various banks, the study applies a quantitative methodology to assess how blockchain usage influences AIS quality and bank performance. Findings indicate a robust positive effect of Blockchain on AIS quality, significantly enhancing business performance. This study confirms the transformative potential of Blockchain in emerging markets and illuminates the pivotal role of AIS quality as a mediator in this relationship. These insights are critical for policymakers, financial institutions, and technology strategists, emphasizing the strategic importance of blockchain technology in enhancing operational efficiency and competitiveness in the banking industry of developing economies.
Smart contracts with excessive gas consumption can cause economic losses, such as black hole contracts. Actual gas consumption depends on runtime information and has a probability distribution under different runtime situations. However, existing static analysis tools (e.g., Solc) cannot define runtime information and only provide an approximate upper bound on gas consumption without explanation. To address the challenge, we propose a label named GCL, which describes the probability distribution of gas consumption, a code representation method containing domain features and a graph neural network (GNN) named attention-based graph isomorphism network (AGIN) oriented to domain feature, and SubgraphGas, a domain-oriented subgraph-level GNN explanation model. By combining AGIN and SubgraphGas, we have created a new explainable gas consumption prediction model (EGE). Our evaluations show that EGE outperforms prediction schemes based on Bi-LSTM. And EGE has similar explainability accuracy to general methods, but it is more efficient.
Driven by technology innovation and digital change, the US financial environment is going through a significant transition. The exceptional accessibility and simplicity of digital financeâwhich encompasses fintech, bitcoin, and mobile bankingâbenefits both consumers and businesses. However, regulatory frameworks, consumer behavior, and cybersecurity risks come along with this paradigm shift. Through the integration of contemporary literature studies and empirical data, this study aims to present a comprehensive picture of the digital financial landscape in the United States. We evaluate the revolutionary impact of digital technologies on financial services, client preferences, emerging risks like decentralized finance (DeFi) and cybersecurity vulnerabilities, and regulatory innovations and limits using a systematic evaluation approach. Our findings underscore the multifaceted nature of digital banking and point to important trends, drivers, and stakeholder implications. We suggest enhancing regulatory coordination, fostering financial education and awareness, putting robust cybersecurity measures in place, supporting regulatory innovation, fortifying consumer protection measures, and keeping an eye on and responding to emerging risks to address the opportunities and challenges that have been identified. By putting these suggestions into practice, regulators, legislators, and business stakeholders will be able to handle the complexities of the digital banking ecosystem and fully utilize its potential to promote innovation, financial inclusion, and economic growth.
Abstract: The advancement of Web3 and blockchain is happening rapidly in various fields, including healthcare, social services, and electronic voting. Blockchain technology is being used by crowdfunding platforms to combine its benefits of speed and low fees with traditional finance, creating a new way of raising money. By integrating Reacts user-friendly interface, Solidity smart contracts, Meta-Mask wallet integration and Hardhat development and testing capabilities, it forms a versatile and secure platform. This project aims to find out how much money is missing in the current crowdfunding market and offer them smart contracts and tools that use Ethereum to create their own application businesses. Hybrid Model Platform is a ThirdWeb tool that allows for easy and flexible scaling and visibility. this new crowdfunding app is a major leap in fundraising, fulfilling numerous customer requirements and poised to revolutionize crowdfunding with its fresh and inventive strategy.
This study examined the money transfer service, mobile loan service, remittance service and how they contribute to the financial inclusion in Musanze district. The study used a descriptive research design to investigate the relationship between digital financial services and financial inclusion Musanze district, Rwanda. This study adopted a mixed approach, as both quantitative and qualitative techniques were used. The population of the study were adult inhabitants of Musanze District, i.e., those with a national identity card, which is a prerequisite for opening a mobile money account. The primary data were collected using questionnaire and interview guides. The questionnaire findings on the first specific objective gave a mean score was 4.04 (std = 1.069) indicating that the respondents highly agreed that money transfer services contribute to financial inclusion and with very low divergence. On the second objective, the overall mean was 3.94 (std=1.00) showing that there was general agreement among respondents on the fact that mobile loan services contribute to financial inclusion. On the third specific objective, an overall mean of 4.24 (std=0.82) was obtained indicating that most of the respondents agreed that remittance services contribute to financial inclusion. The regression was fairly fit with an R2 = 0.597, implying that digital financial services, namely money transfer services, mobile loan services, and remittance services increase financial inclusion in Rwanda by 59.7%. As per the ANOVA analysis, the regression model (F = 186.821, p = 0.001) was proved to be statistically significant since the p-value was less than the 5% threshold. All the three null hypotheses were rejected at 5% level of significance. This implied that money transfer services, mobile loan services, and remittance services significantly contribute to financial inclusion in Rwanda. From the interview session, the respondents unanimously agreed that digital financial services (DFS) like money transfer, mobile loans, and remittances are the primary drivers of financial inclusion in Musanze District by decentralizing services and creating jobs for agents. Most emphasized the role of mobile money and banking agents in bringing services closer, increasing usage through easy access, although income was cited as a key factor for transacting. Financial literacy and low, seasonal incomes from agriculture were identified as major barriers, with people reluctant to join formal finance due to a cash-at-home mindset and financial inactivity when income is low. The study recommends that mobile financial service providers should enhance the security of their platforms and improve customer support to attract more users. The study also recommends that the regulatory bodies to provide guidelines and rules to be used in the use of telephones as tools for financial services. Keywords: Contribution, digital, financial services and financial inclusion, Rwanda
Smart contracts, leveraging the power of blockchain technology, have revolutionized the execution and enforcement of agreements. However, their adoption also brings forth substantial challenges in terms of security and privacy. This research paper aims to identify the recent areas of focus and provide a comprehensive perspective on blockchain applications and smart contracts, highlighting their main issues and corresponding solutions. Furthermore, it seeks to address the gaps in current research and outline future avenues of investigation. The primary objective is to assess the security and privacy concerns associated with smart contracts in blockchain and propose effective measures to enhance their robustness. By conducting a thorough analysis of vulnerabilities, attack vectors, and privacy considerations, this study offers valuable insights into the risks involved in smart contracts. It also puts forth practical solutions and best practices to mitigate these risks, ensuring a more secure and privacy-preserving environment for the deployment and execution of smart contracts.
O. Felix Ayadi, Oluseun Paseda, Babatunde Olufemi Oke, Abiodun Oladimeji
Purpose Given the many activities of Nigerian investors in the crypto ecosystem, this paper investigates the level of their awareness, attitudes, risk tolerance, experience, reasons for investing and level of financial literacy. Design/methodology/approach The research approach is based on a self-administered questionnaire. The Organization for Economic Cooperation and Development (OECD) permitted the use of its reliable and validated survey instrument, administered in Malaysia, the Philippines and Vietnam in 2019. The results are tabulated and analyzed. Findings The key results include the participation of respondents, who are generally young males, not fully financially literate but risk-averse. Many held the false view that investing in global markets is a higher risk than in national markets. Their reasons for investing in crypto include the fear of missing out on good opportunities and the desire to have fun. The results also revealed that social media, conversations with non-experts and online articles are among the most used investment information sources, highlighting the role of digital platforms and informal discussions in shaping perceptions and knowledge about cryptocurrencies. Investments in cryptos are financed through savings, regular monthly budgets or borrowed from friends or family. As for specific attitudes to risk, the results suggest that for most respondents, preserving their invested capital is of paramount importance. Originality/value The importance of this research also resides in the possibility of comparing the crypto ecosystem in Asia with Nigeria because the same OECD data instrument is employed in data collection. Moreover, this study is the most comprehensive research about Nigerian investors in cryptocurrencies.
Smart contracts are software programs that enable diverse business activities on the blockchain. Recent research has identified new classes of "machine un-auditable" bugs that arise from both transactional contexts and source code. Existing detection methods require human understanding of underlying transaction logic and manual reasoning across different sources of context (i.e. modalities), such as code, dynamic transaction executions, and natural language specifying the expected transaction behavior. To automate the detection of ``machine un-auditable'' bugs, we present SmartInv, an accurate and fast smart contract invariant inference framework. Our key insight is that the expected behavior of smart contracts, as specified by invariants, relies on understanding and reasoning across multimodal information, such as source code and natural language. We propose a new prompting strategy to foundation models, Tier of Thought (ToT), to reason across multiple modalities of smart contracts and ultimately to generate invariants. By checking the violation of these generated invariants, SmartInv can identify potential vulnerabilities. We evaluate SmartInv on real-world contracts and re-discover bugs that resulted in multi-million dollar losses over the past 2.5 years (from January 1, 2021 to May 31, 2023). Our extensive evaluation shows that SmartInv generates (3.5X) more bug-critical invariants and detects (4$\times$) more critical bugs compared to the state-of-the-art tools in significantly (150X) less time. \sys uncovers 119 zero-day vulnerabilities from the 89,621 real-world contracts. Among them, five are critical zero-day bugs confirmed by developers as ``high severity.''
The rise of innovation and technological development has triggered a revolution in the financial sector with a new 'non-centralized' system. The purpose of this study is to comprehend the idea of decentralized finance and pinpoint its advantages. Using literature sources, this study employs a qualitative descriptive methodology. Books, periodicals, and other publications are examples of secondary data. According to the study's findings, DeFi has five maslahah: 1) Maintain religion (hifzu al-din); 2) Preserve the soul (hifzu an-nafs); 3) Preserve offspring (hifzu al-nasl); 4) Preserve the intellect (hifzu al-'aql); and 5) Preserve property (hifzu al-maal). These principles align with technology and the development aspects of the era of Society 5.0. Consequently, it is advised that the government implement a regulation utilizing blockchain technology in the banking industry.
Cryptocurrencies have emerged as a truoblemaking technology with the prospective to reform the financial landscape. This research study future aim to explore and evaluate the topic of the adoption process of cryptocurrencies from many perspectives. This research study is based on secondary data possessed by researchers from various sources i.e journal, articles, magazines, newpapers, and papers reviewed by the researcher. It was shown in secondary data that the cryptocurrency landscape continues to mature and overcome the challenges it faces, and the prospect of bitcoin and other cryptocurrencies revolutionizing the worldwide financial framework and redesigning how we engage in transaction, preserve wealth, and obtain financial affordable appears more plausible. A digital currency centric environment can offer openings for fresh participants in the market and support new businesses by streamlining the fundraising procedure. Initial coin offerings allow entrepreneurs and investors to fund new ventures without relying on intermediaries and approvals from conventional investors and financial institutions. Cryptocurrency represents an ongoing progression guiding by a varied and fervent community encompassing developers, innovators, financiers, and adopters. The route of monetary evolution undergoes reinterpretation, with digital currencies like Bitcoin assuming a very important role in this dynamic metamorphosis.
Since the Global Financial Crisis (GFC) in 2007 two important outcomes have affected banking development. The first refers to the launching of Bitcoin and distributed ledger technology that opened the doors to decentralized finance (DeFi), and thereby threatening to disintermediate banks in the banking value chain, while the second one relates to the increased visibility of the phenomenon of sustainable banking that highlights the importance of environmental awareness, social responsibility, transparency, and accountability. Even though these two outcomes may seem to lead banking development into divergent pathways, one might ask can the fintech companies contribute to building a more inclusive, resilient, and sustainable banking system. The aim of this research paper is to explore the intersection of fintech and sustainable banking by analyzing its purpose, fintech development and its role as a facilitator in the sustainable banking and, finally, by finding the intersection between them.
This paper introduces blockchain-based smart contracts and Decentralized Autonomous Organizations (DAOs) as compelling alternatives to conventional corporate structures. Coaseâs pioneering work in the 1930s posited that the decision to organize transactions within a firm hinges on whether it is more cost-effective than executing them in the open marketplace. However, if these transactions can be conducted more efficiently in the marketplace without the need for a traditional firm, that becomes the preferred approach. The advent of blockchain-based smart contracts, along with the adoption of numerous self-executing smart contracts, has the potential to significantly reduce the dependence on traditional firms. Coaseâs theorem was contingent on the magnitude of transaction costs, and if smart contracts can substantially diminish these costs, facilitating the emergence of DAOs, the original rationale for forming a firm may no longer apply when considering the blockchain paradigm.
In this work we explore ways to restrict the ability to call Solidity smart contract functions for a specified duration. We describe methods to restrict functions from being called twice in the same transaction, block, or time period. This is related to the notion of non-reentrant functions, which are functions that can be called within a previous execution. These methods can be used to restrict interactions with entire sets of functions of smart contracts. We are motivated to revisit this topic for two reasons. First, we note that sixteen real-world smart contracts exploits in 2023 resulting in over $136M USD lost or stolen that could have been prevented by restricting function calls. As part of this survey, we dissect a new class of exploit that involves so-called read-only reentrancy: exploits that re-enter read-only functions to use smart contract state inconsistencies in order to enable their exploitation. Second, while some of these approaches are simple, they may not always behave the same across different blockchains that support Solidity.
This article delves into the transformative landscape of digital financing innovations and their impact on the financial performance of Small and Medium-sized Enterprises (SMEs) within the context of the digital economy era. Through a comprehensive exploration of literature and analysis of future trends, this study sheds light on the evolving dynamics of digital finance and its implications for SMEs. Key findings reveal a paradigm shift fueled by emerging technologies, including blockchain, artificial intelligence, and the Internet of Things. These technologies have ushered in a new era of financial inclusion, efficiency, and transparency, empowering SMEs with unprecedented access to affordable and tailored financial services. Furthermore, the research underscores the pivotal role of FinTech in driving innovation and disruption in the financial landscape. From integrated financial platforms to decentralized finance protocols, SMEs are presented with a myriad of digital solutions tailored to their unique needs, fostering resilience and competitiveness in an increasingly digitalized marketplace. Amidst these advancements, policymakers and regulatory authorities play a crucial role in shaping the digital finance ecosystem. Initiatives such as regulatory sandboxes and interoperable standards are essential to promote trust, stability, and consumer protection, ensuring that SMEs can fully harness the potential of digital financing to fuel economic growth and prosperity. In conclusion, this study highlights the immense promise of digital financing for SMEs in navigating the complexities of the digital economy era. By embracing digital innovation and fostering collaboration between stakeholders, SMEs can unlock new avenues for growth, enhance their competitiveness, and contribute to inclusive and sustainable economic development.
Vilhelm SjÜberg, Kinnari Dave, Daniel Britten, Maria A. Schett ¡ 9 authors
Programs executed on a blockchain - smart contracts - have high financial stakes; their correctness is crucial. We argue, that this correctness needs to be foundational: correctness needs to be based on the operational semantics of their execution environment. In this work we present a foundational system - the DeepSEA system - targeting the Ethereum blockchain as the largest smart contract platform. The DeepSEA system has a small but sufficiently rich programming language amenable for verification, the DeepSEA language, and a verified DeepSEA compiler. Together they enable true end-to-end verification for smart contracts. We demonstrate usability through two case studies: a realistic contract for Decentralized Finance and contract for crowdfunding.
Abstract The goal of this study on the legal framework for virtual assets in Mauritius is to find any gaps in the legislation, come up with solutions to close such gaps, and improve the existing legal framework for virtual assets. The article concentrates on the provisions of the Virtual Asset and Initial Token Offering Services ( vaitos ) Act 2021, which seeks to control the market for cryptocurrencies and other virtual assets in Mauritius. Selected countries were studied in order to discover the various techniques used with regard to regulatory challenges. Although Mauritius passed a comprehensive law on the issue, we find that the Financial Services Commission, the countryâs regulatory authority, lacks the necessary tools to effectively oversee cryptocurrencies and other virtual assets. The integration of virtual asset services with African nations is also lacking.
This manuscript scrutinizes the profound transformation digital financial innovations have induced within traditional financial landscapes, positing a trajectory for forthcoming advancements. It delineates the transition from conventional to digital finance, emphasizing the instrumental role played by blockchain, cryptocurrencies, fintech breakthroughs, and artificial intelligence in the reconfiguration of financial services. The discourse elaborates on the enhancements in efficiency, inclusivity, and interconnectedness fostered by digital finance, concurrently navigating through the intricacies and challenges it precipitates. By investigating the socio-economic repercussions, regulatory obstacles, cybersecurity threats, and concerns regarding market stability, the study furnishes insights into the reformation of market operations, regulatory architectures, and the prospective direction of the finance sector. Moreover, it probes into the advent of Central Bank Digital Currencies (CBDCs), the sustainability of fintech, decentralized finance (DeFi), and the extensive ramifications of these technologies on financial markets, economic systems, and social frameworks.
This research explores the impact of cryptocurrencies on the financial landscape, focusing on the rise of blockchain technology, the emergence of central bank digital currencies (CBDCs), and the growth of decentralized finance (DeFi). The study examines the regulatory environment of cryptocurrencies in Australia and the challenges and opportunities associated with their adoption. Key findings highlight the transformative potential of cryptocurrencies in revolutionizing traditional financial systems by increasing transparency, efficiency, and accessibility. The research emphasizes the importance of adapting policies to support the evolving cryptocurrency market.
Decentralized Exchanges (DEXs), leveraging blockchain technology and smart contracts, have emerged in decentralized finance. However, the DEX project with multi-contract interaction is accompanied by complex state logic, which makes it challenging to solve state defects. In this paper, we conduct the first systematic study on state derailment defects of DEXs. These defects could lead to incorrect, incomplete, or unauthorized changes to the system state during contract execution, potentially causing security threats. We propose StateGuard, a deep learning-based framework to detect state derailment defects in DEX smart contracts. StateGuard constructs an Abstract Syntax Tree (AST) of the smart contract, extracting key features to generate a graph representation. Then, it leverages a Graph Convolutional Network (GCN) to discover defects. Evaluating StateGuard on 46 DEX projects with 5,671 smart contracts reveals its effectiveness, with a precision of 92.24%. To further verify its practicality, we used StateGuard to audit real-world smart contracts and successfully authenticated multiple novel CVEs.
Decentralized Finance, known as DeFi (Decentralized Finance), refers to the use of blockchain and digital assets or crypto-assets for the provision of financial services. Through DeFi applications, services such as loans, insurance, crypto-asset exchanges, among others, are offered, and are structured based on crypto-assets and technologically decentralized applications. This paper will discuss the concept of DeFi and how it challenges the traditional market infrastructures of the financial sector, demystifying the idea of absolute decentralization, generally mentioned in the crypto-asset arena. Subsequently, the paper will analyze the opportunities and challenges of DeFi for consumers, financial institutions, new competitors and financial regulators. Among the opportunities, it will present how DeFi could contribute to financial inclusion, to the automation of certain financial products, and how it is a key factor for the development of metaverses. As part of the challenges, the paper will analyze the problems of money laundering and terrorist financing in these markets, financial consumer protection, corporate governance issues, the lack of transparency of these products, cybersecurity risks and systemic risk. Finally, the paper will address some early regulatory responses that policymakers have proposed in response to some of these challenges in different jurisdictions.
Several large financial trading platforms have recently begun implementing âcopy trading,â a process by which a leader allows copiers to automatically mirror their trades in exchange for a share of the profits realized. While it has been shown in many contexts that platform design considerably influences user choicesâusers tend to disproportionately trust rankings presented to themâwe would expect that here, copiers exercise due diligence given the money at stake, typically USD 500â2 000 or more. We perform a quantitative analysis of two major cryptocurrency copy-trading platforms, with different default leader ranking algorithms. One of these platforms additionally changed the information displayed during our study. In all cases, we show that the platform UI significantly influences copiersâ decisions. Besides being sub-optimal, this influence is problematic as rankings are often easily gameable by unscrupulous leaders who prey on novice copiers, and they create perverse incentives for all platform users.
T. Amalraj Victorie, M. Vasuki, Sakthi Ganapathy S
This paper explores how the combination of artificial intelligence (AI) can enhance governance in cryptocurrency communities and Decentralized Autonomous Organizations (DAOs). Using insights from blockchain, machine studying, and social computing, we examine moral concerns and dangers While addressing them, we discuss the potential of AI to improve efficiency, transparency and inclusion in phrases of governance shape. Through case studies, we demonstrate sensible packages of AI, consisting of social media sentiment analysis, algorithmic trading, and decentralized forecasting markets. We explore the impact of AI on governance token systems, selection- making processes and community-pushed governance models. Challenges along with algorithmic bias, records privacy, and the need for human oversight are discussed in conjunction with suggested studies suggestions and great practices for implementing responsible AI. This paper explores how the integration of synthetic intelligence (AI) can enhance governance in cryptocurrency communities and decentralized c Decentralized Autonomous Organizations (DAOs). Using insights from blockchain, gadget learning, and social computing, we examine moral worries and dangers While addressing them, we talk the potential of AI to enhance performance, transparency and inclusion in terms of governance structure. Through case research, we display realistic programs of AI, which include social media sentiment evaluation, algorithmic trading, and decentralized forecasting markets. We discover the effect of AI on governance token systems, decision-making methods and network-pushed governance models. Challenges including algorithmic bias, records privateness, and the need for human oversight are mentioned in conjunction with suggested research tips and exceptional practices for the responsible use of AI By clarifying the ability of AI in cryptocurrency governance, we help bridge the space among AI and decentralized selection-making.
Digital financial inclusion remains a pressing challenge across emerging markets, where traditional banking infrastructure is limited and transaction costs hinder broad economic participation. This paper presents a novel micro transaction engine that leverages blockchain technology and decentralized finance (DeFi) principles to enable secure, low-cost, and real-time digital payments. The system integrates a smart contract-based clearing mechanism with AI-driven fraud detection, ensuring trustless execution and operational resilience. By anchoring off-chain micro transactions to an on-chain settlement ledger, the architecture achieves both scalability and compliance with regional financial regulations. A pilot deployment in an African mobile payment context demonstrates reduced transaction fees by over 70% and a 43% improvement in fraud detection accuracy. These findings position the system as a viable foundation for inclusive and next-generation digital financial ecosystems.
This study investigates the implications of the interaction of financial literacy, regulatory technology, and decentralized finance applications for financial sector development. A two-step analytical regression approach on EViews 10 was used, which performs a one-factor analysis for each variable to identify the individual impact of each factor. A linear FMOLS approach was used to evaluate the cooperative effect of integration. The methodology was implemented on a dataset comprising 2,880 observations from 23 financial institutions in Jordan.The findings support the hypothesized dynamic interrelations between the essential Fintech factors relevant to the sustainable development of the financial sector, including significant and insignificant factors with the impact of inflation, which provides an adequate understanding of Fintechâs evolution. Additionally, the outcomes consider post-2017 regulatory changes that reflect the role of supervision and regulation for the financial sectorâs flexibility and efficiency. Therefore, the results reveal the essential contribution of integrating decentralized finance applications, financial literacy, and regulatory technology to the development of Jordanâs financial sector. Financial literacy serves as a facilitator, regulatory technology is a compliance enabler, and decentralized finance applications are driving forces of innovation and financial inclusion, ensuring a robust and sustainable financial ecosystem. It is shown that the interaction of factors forces the sectorâs development, reflecting the worldâs trend in digital inclusion and viable financial development.