Abstract Financial transaction transparency has gradually become one of the main directions for the development and construction of the financial transaction market. This paper integrates blockchain and smart contracts and proposes a strategy to improve financial transaction transparency in order to protect transaction data privacy and identify and trace transaction anomalies. The proposed DM-IBBE scheme for smart contract transaction privacy involves choosing different interpolation points based on Lagrange interpolation curves and creating encryption modes that meet the requirements for financial transaction privacy. Based on a graph neural network, the propagation probability of abnormal transactions is calculated from the blockchain network topology using the TAGCN model, and the influence of irrelevant noise pairs is eliminated to realize the identification and traceability of abnormal transactions. Taking the financial transaction platform of City A as the research object and carrying out the practice of financial transaction optimization, the evaluation scores of the first-level indexes of comprehensive government transparency, transaction process transparency, operation result transparency, process service transparency, and operation transparency and guarantee are 76.58, 88.93, 95.42, 89.51, and 88.43, and except for the indexes of comprehensive government transparency, the other indexes are all greater than 80 points. The second-level indicators’ evaluation value increases from the 50–70 score range before financial transactions optimization to the 80–100 score range. The financial transaction platform in City A has significantly improved the transparency of financial transactions.
<div xmlns="http://www.tei-c.org/ns/1.0"> The financial industry is undergoing a transformative evolution driven by technological advancements and shifting consumer expectations. "Future Trends and Opportunities: Opportunities for innovation and disruption in the financial industry" provides a comprehensive exploration of key trends shaping the industry's future. From the rise of digital transformation and blockchain to the integration of artificial intelligence and sustainable finance, the abstract highlights the multifaceted opportunities for innovation. Emphasis is placed on enhancing customer experiences, improving operational efficiency, promoting financial inclusion, and addressing the challenges of regulation, cybersecurity, and privacy. The abstract concludes by emphasizing the critical importance of adaptation, continuous innovation, and collaborative efforts between traditional institutions and fintech disruptors to navigate the dynamic landscape and seize the opportunities that lie ahead in the evolving financial ecosystem I. Introduction A. Brief overview of the financial industry B. Importance of innovation and disruption in driving growth C. Purpose of exploring future trends and opportunities II. Current Landscape of the Financial Industry A. Traditional banking and financial services B. Rise of fintech companies C. Emerging technologies (blockchain, artificial intelligence, etc.) D. Regulatory environment and its impact III. Future Trends in the Financial Industry A. Digital transformation and the shift to online platforms 1. Mobile banking 2. Digital wallets 3. Contactless payments B. Blockchain and cryptocurrencies 1. Decentralized finance (DeFi) 2. Central bank digital currencies (CBDCs) 3. Smart contracts C. Artificial Intelligence (AI) and Machine Learning (ML) 1. Robo-advisors 2. Predictive analytics for risk management 3. Chatbots and virtual assistants D. Open banking and API integration 1. Collaboration between traditional banks and fintechs 2. Enhanced customer experience 3. Data sharing and security concerns IV. Opportunities for Innovation and Disruption A. Enhanced customer experience 1. Personalized services 2. Real-time financial insights 3. Seamless onboarding processes B. Improved efficiency and cost savings 1. Automation of repetitive tasks 2. Streamlined back-office operations 3. Enhanced fraud detection and prevention C. Financial inclusion 1. Serving the unbanked and underbanked populations 2. Microfinance and alternative lending solutions D. Sustainable finance 1. ESG (Environmental, Social, Governance) investments 2. Green financing options 3. Social impact investing V. Challenges and Considerations A. Regulatory hurdles B. Cybersecurity concerns C. Privacy and data protection D. Resistance to change in traditional institutions VI. Conclusion A. Summary of key future trends and opportunities B. Importance of adaptation and continuous innovation C. Encouraging collaboration between traditional and new players in the financial industry </div>
Sandhya Sharma, G. Pandi Selvi, Shailaja M L, Arushi Mehta, Aparna Srivastva, Alok Gupta
this is a potentially game-changing development that could come from fusing blockchain technology with IoT and artificial intelligence (AI) to improve the efficiency of smart contracts in the banking industry. We can greatly increase the transparency, security, and efficiency of banking transactions by utilizing the decentralized and rigid nature of blockchain technology, real-time data from Internet of Things (IoT) devices, and artificial intelligence's (AI) intelligent decision-making capabilities. These three things working together make this possible. This paper examines the methods by which these technologies can facilitate operational simplification, fraud reduction, and stakeholder confidence building. The research specifically focused on how these technologies are used. We have out a thorough analysis of numerous fabrics and case studies to highlight the synergistic advantages of this integration. This helps pave the way for it by making a more open and responsible financial environment feasible. By addressing the challenges that are now being encountered and identifying the unspoken pathways that will lead to the deployment of these cutting-edge technologies in the banking institution, this investigation seeks to shed light on the future of financial transactions. We shall conduct this research too.
Smart Contracts form a predominant tool for today's operations, and it is existing in practically all felds like health, banking, investments etc. It is an alternative that matches the rapidity, and the easiness required by the new era. But legal adjustments are needed to preserve the rights and confront the challenges that come with it.
Abstract The use of smart contract technology for contract execution and real-time payment can ensure the timely availability of funds, thus ensuring the security and authenticity of data in power grid transactions. In this paper, we design a digital RMB smart contract model based on blockchain technology and use the hexadecimal model to create, deploy, and execute smart contract functions. And through the DTSC algorithm, smart contracts can be applied to the grid smart payment settlement. At the same time, a privacy protection algorithm for transaction data is proposed, and finally, the grid smart payment settlement system is designed based on smart contracts and privacy protection algorithms. Simulation test results show that the cost required for the digital RMB smart contract proposed in this paper is lower than the existing schemes in terms of invocation and deployment costs. The average chain code invocation delay in smart contract technology decreases when the transaction sending rate increases from 250TPS to 300TPS. Moreover, the on-chain operation time of this system is only 2.69 seconds, which meets the demand of practical power grid smart payment settlement applications. This paper sets the foundation for the efficient operation of the grid smart payment and settlement system and provides a guarantee for payment and settlement security.
Regulating cryptocurrency’s place in America’s most popular retirement savings vehicle generates thorny legal, ethical, and social justice dilemmas. Too little regulation could hurt those at highest risk of underfunded retirement. Too much could exacerbate existing racial, ethnic, and gender inequities. Though recent regulatory efforts suggest 401(k) administrators violate their fiduciary duty of care by offering cryptocurrency investment options to plan participants, the established fiduciary regime protects 401(k) plan participants from cryptocurrency risk while respecting their savings preferences. Yet, the current framework falls short of ethically and equitably serving all plan participants, particularly members of underserved communities— a problem largely unaddressed in academic, industry, or regulatory discourse. This Article demonstrates how regulators’ needlessly paternalistic approach toward cryptocurrency options could disproportionately impact minority retirement savings participation. Applying the existing fiduciary framework and practical mechanisms that plan fiduciaries currently use would minimize cryptocurrency risk to participants without rewriting the rules governing plan administration. This Article also proposes a novel, scientifically supported method by which fiduciaries should convey retirement planning information to improve retirement outcomes for all: via non-traditional media.
Saeed Mohebi Ashtiani, Omid Ali Adeli, Mohammadreza Pourfakharan, Mohammad Hasan Maleki
Smart contracts are one of the most significant applications of blockchain technology, which have gained considerable importance in the financial industry. These contracts promote transparency and enhance good governance in the banking sector. The present research aims to conduct a Futures Study of smart contracts in the banking industry using a scenario-building approach. This research is applied in nature, and methodologically, it is a mixed-methods study. In this research, fuzzy Delphi, fuzzy WASPAS, and interviews with focus groups were used to analyze the data. In the first step, 37 drivers were identified through a literature review and interviews with blockchain experts. These drivers were then filtered using expert questionnaires and the fuzzy Delphi method. Nine drivers were selected for final prioritization using the fuzzy WASPAS method. The filtered drivers were ranked through prioritization questionnaires and the fuzzy WASPAS method. Based on the scores of the fuzzy WASPAS method and considering three criteria—expertise, importance intensity, and certainty level—the drivers of coordination and integration level of banks in adopting new technologies and contracts, as well as the integration level of information systems in the banking industry, were given the highest priority and were selected for scenario mapping. The research scenarios were developed based on the two prioritized drivers and through interviews with focus groups. These scenarios included: Smart Banking, Integrated Banking, Island Banking, and Traditional Banking. Smart Banking represents the ideal scenario, and practical recommendations were developed based on this scenario.
This article explores the synergistic effect of combining smart contracts and asset tokenization in the context of transforming financial transactions. The author analyzes the essence and features of smart contracts and tokenization processes, considering their advantages and potential risks in the financial industry. The paper highlights key challenges in implementing these innovative tools, including imperfect legal regulation, ensuring data security and confidentiality, and the volatility of cryptocurrency markets. The author emphasizes the need to create clear legal frameworks, develop security standards and best practices for smart contracts, and foster the development of appropriate infrastructure and ecosystem. Special attention is given to the synergistic effect of combining smart contracts and tokenization. It is noted that such synergy allows for the automation of tokenized asset management processes, ensures transparency and efficiency of transactions, and creates new investment products and business models.
Since 2009, the process of creating virtual financial assets, in particular bitcoin, has been taking place in Ukraine, as in many countries of the world, and the scale of this activity is growing almost exponentially. The lack of state regulation creates the problem of lack of accounting and control of those negative effects on ecology and economy that arise in the process of creating virtual financial assets, i.e. mining. The work analyzes the findings of domestic and foreign scientists regarding the risks inherent in the creation of virtual financial assets, the main of which are the significant consumption of electricity produced from non-renewable sources, carbon and heat emissions, the use of clean water and the creation of electronic waste. Three stages in mining activity are defined and the problems of risk reduction inherent in each stage are defined. The first stage is decisive in terms of preventive actions regarding the risks that will arise in the next stage. At this stage, it is necessary to decide on the location of the equipment, the type of equipment that will be used in the mining process. In our opinion, providing mining with a unique code in KVED and introducing licensing of the specified activity are mandatory actions of the state on the way to reducing the risks associated with the creation of virtual financial assets. Licensing conditions must contain requirements for minimum energy efficiency, setting limits on the use of electricity and Internet traffic, and obligations regarding the safe disposal of electronic waste. At the second stage, it is important to choose the Proof-of-Stake consensus mechanism, which will allow you to save electricity. The third stage involves providing information on the type and amount of resources that were used during mining, as well as on the amount of carbon and heat emissions, during the release of the created assets to the market. This will enable investors to make informed decisions taking into account their attitude to environmental safety. The need for active actions by the state regarding the recognition of mining as a separate type of activity with its inclusion in the KVED and the introduction of licensing with the inclusion of requirements for reducing risks in miners’ activities in the licensing conditions is substantiated.
Jan 1, 2024·Proceedings of the ... Annual Hawaii International Conference on System Sciences/Proceedings of the Annual Hawaii International Conference on System Sciences
Wieland Müller, Shahper Richter, Michael Leyer, Alexander Richter
Fueled by recent technological developments and reinvigorated through the hype around the Metaverse concept, virtual worlds are becoming increasingly popular as platforms for social interaction, entertainment, and commerce. This study applies transaction cost theory to explore smart contracts' potential in virtual worlds, specifically Decentraland, Sandbox, and Roblox. By assessing process costs, we gauge the feasibility and usability of these decentralized worlds in line with the Metaverse vision. Our findings indicate that the concept and implementation of smart contracts are still nascent and require enhancements from technical, organizational, and user standpoints. Our study contributes to a better understanding of smart contracts' current value in virtual worlds and points to future research directions for optimizing their use.
With the rise of blockchain technology, the security issues of smart contracts have become increasingly critical. Despite the availability of numerous smart contract vulnerability detection tools, many face challenges such as... | Find, read and cite all the research you need on Tech Science Press
Smart contracts are computer programs running on blockchains to automate the transaction execution between users. The absence of contract specifications poses a real challenge to the correctness verification of smart contracts. Program invariants are properties that are always preserved throughout the execution, which characterize an important aspect of the program behaviors. In this paper, we propose a novel invariant generation framework, INVCON+, for Solidity smart contracts. INVCON+ extends the existing invariant detector, InvCon, to automatically produce verified contract invariants based on both dynamic inference and static verification. Unlike INVCON+, InvCon only produces likely invariants, which have a high probability to hold, yet are still not verified against the contract code. Particularly, INVCON+ is able to infer more expressive invariants that capture richer semantic relations of contract code. We evaluate INVCON+ on 361 ERC20 and 10 ERC721 real-world contracts, as well as common ERC20 vulnerability benchmarks. The experimental results indicate that INVCON+ efficiently produces high-quality invariant specifications, achieving a recall of 80%, which can be used to secure smart contracts from 17 types of common vulnerabilities.
The combination of blockchain technology and smart contracts has become a viable way to expedite claims processing and payouts in the quickly changing insurance industry. Enhancing efficiency, transparency, and reliability for the industry may be achieved by automating certain procedures and initiating them on predetermined triggers, smart contracts that is event-based. Conventional insurance procedures can be laborious, slow, and prone to human mistake, which can cause inefficiencies and delays in the resolution of claims. This research proposes a simplified system that automates the whole claims process from submission to reimbursement by utilizing blockchain technology and smart contracts. The suggested method does away with the requirement for human claim filing by having policyholders' claims automatically triggered by predetermined occurrences. These occurrences might be anything from medical emergencies to natural calamities, enabling prompt and precise claim start. The whole claims process is managed by smart contracts that are programmed with precise triggers and conditions, guaranteeing transaction immutability, security, and transparency. Moreover, reimbursements are carried out automatically after the triggering event has been verified, disregarding conventional bureaucratic processes and drastically cutting down on processing times. This strategy decreases the possibility of fraud and disagreement while also improving operational efficiency by combining self-executing contracts with decentralized ledger technology. Insurance companies and policyholders will both eventually profit from an accelerated, transparent, and reliable claims processing procedure thanks to the use of event-based smart contracts. A Python-implemented system achieving 97.6% accuracy using the proposed method, demonstrates its efficacy and reliability for the given task.
Abstract Blockchains are decentralized systems that provide trustable execution guarantees through the use of programs called smart contracts. Smart contracts are programs written in domain-specific programming languages running on blockchains that govern how tokens and cryptocurrency are sent and received. Smart contracts can invoke other smart contracts during the execution of transactions initiated by external users. Once deployed, smart contracts running code cannot be modified, so techniques like runtime verification are very appealing for improving their reliability. Moreover, the conventional model of computation of smart contracts is transactional: once operations commit, their effects are permanent and cannot be undone. Therefore, errors in smart contracts may lead to millionaire losses of money. In this paper, we present the concept of future monitors which allows monitors to remain waiting for future transactions to occur before committing or aborting. This is inspired by optimistic rollups, which are modern blockchain implementations that increase efficiency (and reduce cost) by delaying transaction effects. We exploit this delay to propose a model of computation that allows bounded future monitors. We show our monitors correct respect with legacy transactions, how they implement bounded future monitors and how they guarantee progress. We illustrate the use of bounded future monitors by implementing correctly multi-transaction flash loans.
Corporate governance encompasses a set of processes, customs, policies, laws, and institutions that affect how a corporation is directed, administered, or controlled. Technology both enhances and disrupts the traditional board-centric corporate governance system, enhancing efficiency and transparency while introducing new challenges and risks. In this work we examine three key themes comprehensively: the redefinition of information and information asymmetry through the generation of and access to big data; blockchain technology’s transformative potential for aggregating preferences and exercising shareholder voting rights while blurring the line between securities and tokens; and the impact of smart contracts and their underlying infrastructure on the expansion of contracts and the implementation of decentralized governance through decentralized autonomous organizations. These innovative technological solutions empower stakeholders to exercise governance rights effectively, but their complexity also gives rise to new barriers and inequalities. As technology evolves, collaboration among researchers, policymakers, and practitioners is imperative to ensure that corporate governance remains effective and responsive to the current dynamic business environment.
The insurance industry plays a vital role in the global financial system, providing individuals and businesses with protection against various risks. However, traditional insurance models face challenges such as inefficiencies, lack of transparency, and limited accessibility. The emergence of decentralized finance (DeFi) presents a unique opportunity to transform the insurance industry by leveraging blockchain technology and smart contracts. This paper explores the potential of DeFi in revolutionizing insurance practices and addressing the limitations of conventional insurance models. The article begins by providing an overview of the current state of the insurance industry, highlighting its importance and the challenges it faces. It then introduces the concept of DeFi, its underlying principles, and the role of blockchain technology and smart contracts in enabling decentralized financial applications. The paper argues that DeFi has the potential to transform the insurance industry in three key aspects: improving efficiency and reducing costs through automated claims processing and reduced administrative overhead; enhancing transparency and trust by leveraging immutable and auditable records on the blockchain; and expanding accessibility and inclusivity by lowering entry barriers for consumers and providing opportunities for underserved markets. The paper also discusses the challenges and considerations associated with the adoption of DeFi in insurance, including regulatory compliance, scalability limitations, interoperability issues, and the need for education and awareness among stakeholders. Real-world examples and case studies of decentralized insurance platforms, such as Etherisc and Nexus Mutual, are presented to demonstrate the feasibility and potential benefits of DeFi insurance solutions. The article concludes by emphasizing the transformative potential of DeFi in creating a more efficient, transparent, and inclusive insurance ecosystem. It calls for further research and exploration to fully understand the implications of DeFi in insurance and highlights the importance of collaboration and experimentation in driving its successful adoption. As the insurance industry faces increasing pressure to adapt to the digital age, embracing change and innovation through DeFi becomes crucial for its long-term sustainability and growth.
Thi-Thu-Huong Le, Jeunhui Kim, Sangmyeong Lee, Howon Kim
The rapid expansion of blockchain technology, particularly Ethereum, has driven widespread adoption of smart contracts. However, the security of these contracts remains a critical concern due to the increasing frequency and complexity of vulnerabilities. This paper presents a comprehensive approach to detecting vulnerabilities in Ethereum smart contracts using pre-trained Large Language Models (LLMs). We apply transformer-based LLMs, leveraging their ability to understand and analyze Solidity code to identify potential security flaws. Our methodology involves fine-tuning eight distinct pre-trained LLM models on curated datasets varying in types and distributions of vulnerabilities, including multi-class vulnerabilities. The datasets-SB Curate, Benmark Solidity Smart Contract, and ScrawID-were selected to ensure a thorough evaluation of model performance across different vulnerability types. We employed over-sampling techniques to address class imbalances, resulting in more reliable training outcomes. We extensively evaluate these models using precision, recall, accuracy, F1 score, and Receiver Operating Characteristics (ROC) curve metrics. Our results demonstrate that the transformer encoder architecture, with its multi-head attention and feed-forward mechanisms, effectively captures the nuances of smart contract vulnerabilities. The models show promising potential in enhancing the security and reliability of Ethereum smart contracts, offering a robust solution to challenges posed by software vulnerabilities in the blockchain ecosystem.