Blockchain Papers

Nidhin Sreedas E, V. Madhusudanan Pillai, Hiran V. Nath

No abstract is available for this record.

Amīr Ḥamzah, Arief Rahman, Hadri Kusuma

The financial sustainability of small and medium-sized enterprises (SMEs) has become increasingly important in the context of economic volatility, technological disruption, and growing sustainability demands. However, existing studies remain fragmented and often examine financial, organizational, technological, and environmental factors in isolation. This study systematically reviews 49 articles indexed in the Scopus and Web of Science databases published between 2014 and 2026 to identify the dominant determinants, thematic patterns, and conceptual structure of financial sustainability in SMEs. Using the PRISMA protocol and NVivo-based bibliometric and thematic analyses, this study examines publication trends, geographic distribution, lexical structures, and thematic relationships across the literature. The results show that research is concentrated primarily in Asia and Europe, reflecting increasing scholarly attention to financial literacy, governance quality, resilience, digital transformation, FinTech adoption, ESG practices, and green finance. Thematic synthesis reveals three interconnected pillars—Internal Capability, Adaptive Resilience, and Digital–Green Transformation—which collectively form an architecture of endurance framework that explains how SMEs maintain financial viability under conditions of uncertainty and change. This framework advances prior reviews by integrating organizational capability, resilience-building mechanisms, and sustainability-oriented transformation into a unified model of financial sustainability for SMEs. Practically, the findings highlight the importance of strengthening financial literacy, governance quality, risk management capability, digital adoption, and sustainability-oriented financing, while emphasizing the role of policy support and financial inclusion in fostering SME resilience. Future research should further explore the implications of generative artificial intelligence, blockchain-based finance, and decentralized finance (DeFi) on SME financial sustainability.

Denys Yu. Lukianchuk

Thisarticleexaminestheproblemofassessingborrowers’creditworthinessindecentralizedfinance(DeFi),takingintoaccountthelimitationsofthetraditionalapproach,whichreliesprimarilyontheLoan-to-Value(LTV)ratio.ItisarguedthatliquidationriskinDeFiismultifactorialinnatureandisshapednotonlybypositionparametersbutalsobytheborrower’sbehavioralcharacteristics,networkexposures,andmarketconditions.Anintegratedapproachtocreditworthinessassessmentbasedonon-chaindataisproposed,whichallowsfortheconsiderationoftransparentandreal-timeindicatorsofuseractivityandmarketconditions.Amathematicalmodeloftheintegratedcreditworthinessindex(IC)hasbeendeveloped,whichinvolvesnormalization,hybridweighting(usingtheentropymethodandanexpertapproach),andtheaggregationofindicatorsacrossfiveriskdomains.AnempiricaltestbasedonasimulationsampleparameterizedaccordingtoDeFiprotocolsconfirmedthesuperiordiscriminatorypoweroftheICindexcomparedtotraditionalmodels.Theresultsobtaineddemonstratethefeasibilityofusingintegratedmultifactormodelstoimprovetheeffectivenessofcreditriskmanagement,aswellastheirpotentialforimplementationinsmartcontractlogicandtheriskmanagementpracticesofDeFiprotocols.

Davide Sperolini

Lending protocols in decentralized finance have traditionally relied on over-collateralization mechanisms, where investor protection is primarily ensured through the automatic liquidation of collateral. While effective from an operational perspective, this approach limits the economic role of credit when compared with under-collateralized structures. In such settings, the prudential management of credit risk becomes a central element for protocol sustainability. This paper proposes a prudential framework for decentralized lending protocols by introducing an additional protection layer based on the distinction between tokenized loss-absorbing capital, an operational buffer, and a prudential reserve. The model defines three classes of subordinated instruments-First Loss Token, Contingent Capital Token, and Subordinated Backstop Token-arranged according to a progressive loss waterfall. The model is first applied to public data from Goldfinch and then extended to a TrueFi dataset, with the aim of assessing the ability of the policy to reduce losses borne by senior liquidity providers. The model shows a net reduction in losses. The sensitivity analysis confirms that the mechanism maintains a positive net benefit across variations in instrument costs, risk weights, and loss severity. The results suggest that an explicit prudential layer may contribute to strengthening the resilience of DAO-based credit protocols by making the prudential cost of risk-taking more transparent and by distinguishing between available liquidity, loss-absorbing capital, and protective reserves.

Lei Song, Xiaolong Guo, Fasheng Xu, Yiqun Chen

No abstract is available for this record.

Pratiti Mohapatra, Shreya Raut

Abstract Corporate treasury departments face growing challenges created by liquidity fragmentation, inefficient cash management, and delayed cross-border settlements-a perfect storm for increased financial risks for the firms and for operational difficulties. The present-day treasury systems rely on centralized banking and manual processes. A traditional one thus lacks the flexibility and the transparency needed in today’s very uncertain global environment.Decentralized finance (DeFi) is presented in this paper as an essential infrastructure layer that has the potential to transform how businesses handle liquidity. DeFi offers programmable, real-time, and international financial execution through the use of smart contracts, algorithmic liquidity pools, decentralized exchanges, and tokenized assets. Conceptual modeling links DeFi mechanics to essential treasury functions, comparative analysis examines DeFi and traditional systems, and scenario simulations explore practical examples of corporate use cases.It is found that DeFi can enhance access to liquidity, reduce transaction costs, and automate treasury operations, especially with respect to intercompany fund flows, short-term financing, and FX execution. However, adoption needs strong governance frameworks, regulatory agreement, and technical compatibility with existing systems. This study offers a practical framework for CFOs, fintech developers, and policymakers to evaluate DeFi’s role in corporate treasury environments. It positions decentralized infrastructure as a useful tool for next-generation liquidity strategies.

Ruma Dey

This paper empirically investigates the determinants and performance implications of capital structure for two dominant Indian conglomerates, Reliance Industries Limited (RIL) and the diversified Tata Group, utilizing annual data spanning the critical 2011–2021 period. The study addresses the ambiguity regarding optimal financing choices in large emerging market firms, focusing on the contrasting centralized, capital-intensive structure of RIL versus the industry-aligned, decentralized financing strategies of major Tata subsidiaries (TCS, Tata Steel, Tata Motors). A dynamic panel data approach, utilizing the System Generalized Method of Moments (Sys-GMM), is employed across the 11-year period to address issues of endogeneity, unobserved firm heterogeneity, and, critically, to accurately estimate the speed of leverage adjustment, given the observed persistence of financing decisions. The results confirm a dual-theory application dictated by corporate strategy and industry alignment. RIL’s financing choices, particularly its aggressive leveraging followed by deleveraging toward zero net debt by 2021, are predominantly explained by the Pecking Order Theory (POT), where high profitability negatively predicts reliance on external debt. Conversely, the Tata Group’s sub-entities strongly align with the Trade-Off Theory (TOT), with asset tangibility significantly dictating debt capacity (e.g., high debt for Tata Steel vs. minimal debt for TCS). Crucially, the analysis confirms that leverage generally showed a significant negative impact on RIL’s operational performance [Return on Assets (ROA) and Return on Equity (ROE)], validating its strategic shift towards an equity-heavy model. The findings underscore the critical role of strategic corporate philosophy (centralized flexibility versus decentralized industry alignment) in shaping capital structure efficiency and shareholder value creation within complex conglomerates.

Ю.А. Оганов, Д.А. Динец

Актуальность исследования обусловлена стремительным развитием криптовалютного рынка и растущим интересом инвесторов к альтернативным способам получения дохода. Одним из таких инструментов становится стейкинг криптовалют, позволяющий получать вознаграждение за участие в поддержании блокчейн-сетей. Проблематика развития данного инструмента заключается в недостаточной осведомленности инвесторов о механизмах стейкинга, его разновидностях, рисках и потенциальной доходности, особенно на фоне высокой волатильности крипторынка. Цель статьи – проанализировать стейкинг как форму альтернативного инвестирования, определить его преимущества и уязвимости, а также оценить перспективность для различных категорий инвесторов. В рамках исследования авторами применены методы сравнительного анализа, теоретического обзора источников, а также произведена оценка рисков и доходности на примерах конкретных криптовалют и платформ. В статье рассматриваются основные виды стейкинга: фиксированный, гибкий, ликвидный и делегированный. Приведены примеры популярных криптовалют, таких как Tezos, Cardano, Algorand, Polkadot и Ethereum, использующих алгоритм консенсуса Proof-of-Stake (PoS - доказательство доли владения), и сопоставлены их потенциальные доходности. Результаты исследования показывают, что при грамотном подходе стейкинг может быть эффективным инструментом создания пассивного дохода. Выявлены ключевые риски: волатильность, ограниченная ликвидность, угроза потери активов и технические сложности. Научным результатом являются предложенные стратегии минимизации рисков, включающие диверсификацию, выбор ликвидных активов и использование проверенных платформ. Таким образом, стейкинг представляет собой перспективный и гибкий инвестиционный механизм в рамках цифровой экономики. The relevance of the study is due to the rapid development of the cryptocurrency market and the growing interest of investors in alternative ways of generating income. One of these tools is cryptocurrency staking, which allows you to receive rewards for participating in the maintenance of blockchain networks. The problem with the development of this tool lies in the lack of investor awareness about staking mechanisms, its varieties, risks and potential returns, especially against the background of high volatility of the crypto market. The purpose of the article is to analyze staking as a form of alternative investment, identify its advantages and vulnerabilities, and assess its prospects for various categories of investors. As part of the study, the authors applied methods of comparative analysis, a theoretical review of sources, and an assessment of risks and profitability based on examples of specific cryptocurrencies and platforms. The article discusses the main types of staking: fixed, flexible, liquid and delegated. Examples of popular cryptocurrencies such as Tezos, Cardano, Algorand, Polkadot, and Ethereum using the Proof-of-Stake (PoS proof of ownership) consensus algorithm are given, and their potential returns are compared. The results of the study show that, with the right approach, staking can be an effective tool for creating passive income. Key risks have been identified: volatility, limited liquidity, the threat of asset loss and technical difficulties. The scientific result is the proposed risk minimization strategies, including diversification, the choice of liquid assets and the use of proven platforms. Thus, staking is a promising and flexible investment mechanism within the digital economy.

Aziza Syzdykova, Р.М. Тажибаева, Ж. К. Жетибаев

Бүгінде қаржы секторы Биткойн және Эфириум сияқты криптовалюталар басқаратын блокчейн технологиясы мен ақылды келісімшарттар ұсынатын мүмкіндіктермен мүлдем жаңа дәуірге аяқ басты. Осы жаңа дәуірде таратылған құрылымға ие және қауіпсіз, ашық және өзгермейтін жазу жүйесін ұсынатын блокчейн технологиясы арқылы қаржы секторына әкелген ең маңызды жаңалықтардың бірі - DeFi деп аталатын орталықтандырылмаған қаржылық қосымшалар. DeFi дәстүрлі қаржылық жүйені түрлендіретін, орталық органдарды алмастыратын жүйені құруға мүмкіндік беретін және негізінде ашық әрі қолжетімді қаржы жүйесін құру үшін блокчейн технологиясын қолданатын экожүйе ретінде қабылдана бастады. DeFi қосымшалары арқылы банктерге немесе әртүрлі қаржылық делдал институттарына жүгінбей-ақ ашық және қауіпсіз транзакциялар жасауға бағытталған. Орталықсыздандырудың арқасында пайдаланушыларға өз активтерін толық бақылау қамтамасыз етіледі және олардың орталық органдарға тәуелділігі төмендейді. Бұл зерттеудің мақсаты DeFi-дің (Decentralized Finance-орталықтандырылмаған қаржы) негізгі принциптері мен мүмкіндіктерін бағалау және оның CeFi-ден (Centralized Finance-орталықтандырылған қаржы) айырмашылығын көрсету болып табылады. Мақалада талдау, индукция және дедукция, салыстырмалы талдау әдістері қолданылды. Зерттеудің теориялық және әдіснамалық негізі шетелдік ғалымдардың ғылыми еңбектері мен Defillama және CoinMarketCap ұйымдарының статистикалық есептері болып табылады. Зерттеу нәтижесінде DeFi экожүйесінің орталықсыздандыру және делдалдық институтсыз транзакция жасау сияқты артықшылықтары бар болса да, оның әртүрлі жүйелі және жүйелі емес тәуекелдері бар (мысалы, реттеу, тұтынушылық, технологиялық және операциялық). Бұл тәуекелдер пайдаланушыларды инвестициялық шығынға ұшыратады. Жүйедегі негізгі технологияны түсіну және күшті қауіпсіздік шараларын қолдану арқылы пайдаланушылар осы ықтимал қауіптерді азайта алады. DeFi пайдаланушылары осы ықтимал тәуекелдерді білуі, жаңа платформаларға қатысуы және инвестициялауда мұқият болуы керек. Нәтижесінде, орталықтандырылмаған қаржы әкелетін инновациялық мүмкіндіктерді кеңінен тану және жүйе ішіндегі ықтимал тәуекелдерді азайту арқылы тезірек, арзанырақ және қолжетімді қаржылық қызметтер ұсынылып, DeFi экожүйесі кеңірек таралуы мүмкін.

Varun Gawarikar

This paper proposes an integrated fintech–insurtech architecture that embeds insurance directly into logistics and trade workflows using digital networks, distributed ledger technologies, and real-time risk analytics. Drawing on network effects, game theory, and empirical observations from inland transport and cargo insurance markets in India, the paper models strategic interactions among insurers, shippers, transporters, and trade finance providers. The study introduces an ordinal risk classification framework and a self-sustaining quarterly cargo claims cycle designed to stabilize liquidity, optimize premium pricing, and reduce information asymmetry, particularly for MSMEs operating in fragmented supply chains. By repositioning insurance as a continuously embedded financial infrastructure rather than a post-loss settlement mechanism, the framework demonstrates how digitally native insurance systems can improve trust, capital efficiency, and resilience across integrated logistics and trade ecosystems.

Josip Jurenić

U ovom diplomskom radu implementiran je decentralizirani sustav kreditiranja i štednje koristeći tehnologiju raspodijeljene glavne knjige. Rad počinje uvodom u osnovne koncepte raspodijeljene glavne knjige, kriptografiju i konsenzusne mehanizme. Analiziran je Ethereum lanac blokova, transakcije i razvoj pametnih ugovora koristeći Solidity i Hardhat. Glavni dio rada fokusira se na implementaciju pametnih ugovora za kreditiranje i štednju, uključujući izdavanje kredita s kolateralom i štednju stabilnih kriptovaluta uz kamate. Razvijeni su vanjski servisi za likvidaciju i ažuriranje kamatnih stopa, te interaktivno korisničko sučelje izrađeno s React.js i TypeScriptom.

Abe Alexander, Lars Fritz

In the ever evolving landscape of decentralized finance automated market makers (AMMs) play a key role: they provide a market place for trading assets in a decentralized manner. For so-called bluechip pairs, arbitrage activity provides a major part of the revenue generation of AMMs but also a major source of loss due to the so-called 'informed orderflow'. Finding ways to minimize those losses while still keeping uninformed trading activity alive is a major problem in the field. In this paper we will investigate the mechanics of said arbitrage and try to understand how AMMs can maximize the revenue creation or in other words minimize the losses. To that end, we model the dynamics of arbitrage activity for a concrete implementation of a pool and study its sensitivity to the choice of fee aiming to maximize the revenue for the AMM. We identify dynamical fees that mimic the directionality of the price due to asymmetric fee choices as a promising avenue to mitigate losses to toxic flow. This work is based on and extends a recent article by some of the authors.

Shen-Ning Tung, Cheuk Yin Lee, Tai‐Ho Wang

We study how trading fees and continuous-time arbitrage affect the profitability of liquidity providers (LPs) in Geometric Mean Market Makers (G3Ms). We use stochastic reflected diffusion processes to analyze the dynamics of a G3M model under the arbitrage-driven market [Milionis et al. 2022a. “Automated Market Making and Loss-Versus-Rebalancing.” arXiv e-prints]. Our research focuses on calculating LP wealth and extends the findings of Tassy and White [Tassy and White. 2020. “Growth Rate of a Liquidity Provider's Wealth in xy = c Automated Market Makers.”] for the constant product market maker (Uniswap v2) to a broader range of G3Ms, including Balancer. This allows us to calculate the long-term expected logarithmic growth of LP wealth, offering new insights into the complex dynamics of AMMs and their implications for LPs in decentralized finance.

Youngsoo Heo

No abstract is available for this record.

C. Vinoth Kumar, Poongundran Selvaprabhu, Nivetha Baska, Vivek Menon U · 7 authors

The Know Your Customer (KYC) process is a fundamental prerequisite for any financial institution’s compliance with the regulatory framework. Blockchain technology has emerged as a revolutionary solution to enhance the effectiveness of the KYC procedure. It ensures that the KYC process is transparent, secure, and immutable, thereby offering a robust solution to combat fraudulent activities. The potential of blockchain technology in revolutionizing the KYC process has been acknowledged globally. Blockchain technology provides a decentralized platform for storing customer data, enabling financial institutions to access the information seamlessly. Using ethereum blockchain technology in KYC procedures can enhance the efficiency of financial institutions, significantly reducing the time and cost associated with the process. This work aims to provide a viable and sustainable solution to the challenges that banks experience in implementing KYC procedures and onboarding new customers. The proposed solution involves the central bank maintaining a comprehensive register of all registered banks while closely monitoring their adherence to the existing regulations governing KYC and customer acquisition.

Umesh S. Mahtani

Double-entry accounting has been used globally for the past six hundred years and has become the base for all corporate financial reporting. Blockchain technology with distributed ledger now provides a new method of accounting termed “triple-entry accounting”. This method consists of recording and storage of business transactions, as a third entry on the blockchain. This third entry is expected to deliver a system that is trustworthy, immutable, and transparent. This study conducts a detailed review of the present literature on triple-entry accounting with blockchain technology and its impact on fraudulent practices. The review shows current literature has limited information on how this methodology will deter financial and accounting fraud. Drawing on the case studies of twenty-four companies involved in fraudulent practices globally, this paper describes common practices in manipulating financial statements, falsifying accounting records, and fraudulent banking transactions. The study explains the mechanics of how these practices can be prevented using triple-entry accounting in the blockchain environment and how the technique will bring about changes in the audit process and in the roles of internal and external auditors in the organization. The study recommends research propositions focused on governance and financial performance of a company when this method is adopted.

Senyu Xu, Huajun Tang, Zhijun Lin, Jing Lu

This study develops a dual-channel supply chain model composed of a retailer with capital constraints and a supplier with sufficient funds, in which the retailer can apply the trade credit financing (TCF) from the supplier. First of all, this work introduces inconsistent pricing strategy, and investigates the optimal pricing, sales-effort level decisions and profits of the dual-channel members. Then it investigates the impacts of consumer channel preference, free-riding behavior (FRB), TCF interest rate, cross-channel return (CCR) and unit contribution to the supplier of the CCR products on the optimal sales-effort level, optimal pricing decisions and the profits of each member under the decentralized and centralized decisions, respectively. To reduce the conflict between the two channels, this research proposes a supplier-revenue sharing contract to coordinate the members so as to achieve the win-win performance with the global optimal supply chain profit. Furthermore, this study uses numerical analysis to test the feasibility of the model and conduct sensitivity analysis. The further results are concluded as follows. (1) Supplier's revenue-sharing contract can well coordinate the dual-channel supply chain with TCF, and achieve the win-win performance with the inconsistent pricing strategy. (2) Under the centralized decision, the overall supply chain profit will have a significant increase with a higher offline-channel preference proportion. (3) The growth of the free-riding coefficient will reduce the overall supply chain profit under both decentralized and centralized decisions when consumers prefer the offline channel, but will increase the centralized overall profit when consumer prefer the online channel. (4) Under the decentralized decision, the online channel's profit will go up and the offline channel's profit will go down when the TCF interest rate increase. (5) Under the decentralized decision, the overall supply chain profit can achieve the maximum by setting a lower unit contribution to the supplier of the CCR products if consumers prefer CCR service. Finally, this work indicates some managerial implications, and proposes some issues for future research.

Sara Lundström, Sofia Öhman

This thesis in Industrial Engineering and Management examines which the critical success factors are for implementing blockchain technology in the context of trade finance. Blockchain is an up-and-coming technology that has yet not been implemented in many organizations. By examining which the success factors are for implementing the technology, a foundation can be provided for future implementation efforts with the hope of achieving a successful result. Furthermore, to assess if an implementation of blockchain has been successful or not, the value of it has been assessed. Through a qualitative study with interviewees from both companies acting in the trade finance industry and experts on the subject of blockchain, information could be gathered in order to confirm the theoretical framework as well asprovide for new findings. The conclusion was that the most important success factors for implementing blockchain, found in the theoretical framework were: "Managing and involving stakeholders (for instance customers and suppliers)", "Clear management support/commitment/involvement of the implementation",and "Understanding of the organization in which the implementation is to take place (its strengths, needs,etc.)". The least important factors proved to be "An in depth understanding of the technology that is to be implemented; what it is and how it works", "Keeping the change communicable and transparent within the organization", and "Extensive project definition and planning". Unexpected findings were that almost all interviewees mentioned that there has to be a real need for the technology in order for it to be successfully implemented. Also, as the very nature of blockchain requires cooperation; it is important to realize that blockchain will require a higher degree of working over organizational boundaries. Another aspect that proved to be important to take into consideration is that the trade finance industry holds legacyand therefore is prone to be resistance to change, especially to a technology of such a highly disruptive character. Lastly, it is of importance to mention that the context also has to be taken into consideration;every organization is different and require different approaches when it comes to implementing blockchain technology. When it comes to how blockchain technology generates value from an organizational perspective, the most common answers were that it enhances collaboration and trust. Many identify value in the problem-solving and more decentralized mindset that blockchain brings. An unexpected finding was that the mere use of the word blockchain will create value, as this enables collaboration and investment. Other reasons given were security, transparency, automation, traceability,and decentralization. Further analysis examined the reasons behind the importance and connection of these answers.

Igor Bernardi Sonza, Alberto Granzotto

Pension funds, when they acquire common shares of companies in the capital markets, start to participate more actively in the decision-making of boards of directors and, through their representatives, in the monitoring of managers. The aim of this study is to determine whether pension funds are good monitors. This is done by identifying the influence of the control structure of pension funds over the financial performance and the market value of Brazilian public companies. Using dynamical models of linear and non-linear regressions estimated by GMM-Sys in an unbalanced panel from 1995 to 2015, it is shown that pension funds do not play a good monitoring role, as the control structure of these funds is negatively related to the financial performance of a company or, in other words, the higher the stake, the worse the performance of the company. A possible reason for this is that pension funds invest in the capital markets for portfolio diversification, are not concerned with specific decision-making in companies and have few monitoring skills, thus generating conflicts that go against the objective of maximizing the value of the company. Also, the study identifies the fact that investors give a higher value to the shares of firms in which domestic public funds have investments, even without proof that such funds improve the profitability of companies. Os fundos de pensão, ao adquirirem ações ordinárias de empresas no mercado de capitais, começam a participar mais ativamente nas tomadas de decisão dos conselhos de administração e no monitoramento dos gestores através de seus representantes. Devido a essa questão, o presente estudo buscou verificar se os fundos de pensão são bons monitores através da identificação da influência da estrutura de controle destes no desempenho financeiro e no valor de mercado das empresas de capital aberto brasileiras. Utilizando modelos dinâmicos de regressões lineares e não lineares múltiplas, estimadas pelo GMM-Sys, em um painel não balanceado de 1995 a 2015, foi evidenciado que os fundos de pensão não desempenham um bom papel de monitoramento, já que a estrutura de controle destes fundos possui uma relação inversa com o resultado financeiro tanto interno quanto de mercado, ou seja, quanto maior a participação acionária, menor é o desempenho das empresas. Esse resultado foi encontrado, possivelmente, pois os fundos de pensão investem no mercado de capitais para diversificação de portfólio, não estando preocupados com tomadas de decisão específicas nas empresas, gerando, assim, falta de habilidades de monitoramento adequadas, provocando conflitos que vão contra o objetivo de maximização de valor das empresas. Também, foi identificado que os investidores valorizam as ações de firmas investidas por fundos públicos domésticos, mesmo sem comprovação que tais fundos melhoram a rentabilidade das empresas.