Ignat Melnikov, Roman Vlasov, Vladimir Gorgadze, Andrey Seoev · 5 authors
Decentralized Finance (DeFi) is a rapidly evolving segment of blockchain technology that enables a transformative approach to financial services through Web3 applications. By leveraging smart contracts, DeFi allows developers to build flexible and innovative financial instruments. Among the most prominent DeFi primitives by liquidity are decentralized exchange~(DEX) swap protocols~(such as Uniswap, Curve, and Balancer) that facilitate fast token-to-token exchanges. However, new exchange mechanisms also introduce new market inefficiencies that can be systematically exploited by arbitrageurs. This paper focuses on swap protocols based on the Automated Market Maker~(AMM), where the product of reserves is preserved as an invariant. We analyze the interaction between arbitrageurs and AMM liquidity pools and develop a mathematical model grounded in empirical pool configurations. Using this model, we derive bounds on the joint revenue of liquidity providers~(LPs) and arbitrageurs, propose a method to estimate the expected number of blocks until the occurrence of Impermanent Loss~(IL), and obtain a lower bound on the pool fee required to achieve a fixed target probability of staying in the Impermanent Gain (IG) zone within a block. The proposed framework extends existing LP risk-assessment methodologies by quantifying symbiotic profitability zones, providing a principled basis for fee selection that aligns LP-arbitrageur incentives and enhances market stability.
Permissioned distributed ledger technology (DLT) is increasingly being proposed for regulated banking, yet its feasibility hinges on whether distributed recordkeeping can meet compliance requirements for auditability, operational resilience, and accountability. This article evaluates permissioned distributed ledger technology (DLT) through three compliance-intensive use cases-interbank settlement, shared know your customer (KYC) utilities, and credit information sharing-and situates the discussion in the Chinese banking context using sector indicators of declining return on assets and rising non-performing loan ratios. It specifies the compliance dependencies that each workflow must satisfy, including legally meaningful settlement finality, audit-quality authorization trails, privacy-preserving identity and data governance, and supervision-compatible access and governance arrangements. This article offers a focused conceptual synthesis of peer-reviewed research across banking, audit, information systems, and financial regulation, using Chinese sector indicators as contextual motivation rather than causal evidence. The contribution is a use-case grounded translation of permissioned-DLT design choices into assessable compliance dependencies for banks, auditors, and supervisors, clarifying why blockchain adoption in banking should be treated as a redesign of evidence and governance rather than as a plug-and-play IT upgrade.
Vabuk Pahari, B. Chandrasekaran, Johnnatan Messias, Krishna P. Gummadi · 5 authors
A decentralized autonomous organization (DAO) is a governing entity that empowers its stakeholders (i.e., users who hold one or more of its tokens) to manage blockchain-based protocols (i.e., smart contracts) collaboratively. The governance of a DAO is explicitly encoded in the DAO's governance contract, which defines how stakeholders participate in governance and how much influence (or voting power) they have in any decision. While decentralization and autonomy are the fundamental tenets of a DAO's design, empirical evidence suggests that in practice governance is often highly centralized. In this work, we study the designs and implementations of 48 public and actively used DAOs, with substantially large capital, deployed on Ethereum. We identify how three key governance mechanisms--token registration, staking, and delegation--originally introduced to improve security or participation, contribute to the concentration of voting power. Unlike prior work on centralization of voting power in specific DAOs, our findings reveal that these governance mechanisms of DAOs themselves systematically reinforce centralization. By elucidating the relationship between governance design and voting centralization, this work advances the understanding of DAO governance structures and highlights the inherent trade-offs between decentralization, security, and usability of DAOs.
Maimunatu Ya'u Ibrahim, Kabiru Ibrahim Musa, Aminu Ahmad, Muhammad Tella
This study develops and evaluates a blockchain–IoT framework for enhancing digital banking security, with a focus on the Nigerian financial ecosystem. Unlike prior works that apply blockchain in generic contexts, this research addresses unique challenges facing developing economies, including weak authentication mechanisms, insider fraud, and systemic vulnerabilities in centralized infrastructures. The framework integrates IoT-based payment processes with blockchain protocols to deliver tamper-proof, real-time transactions, supported by lightweight consensus. Implemented in Python and tested under simulated banking conditions, the model demonstrates stable one-second block intervals, simulated peak throughput exceeding 237,000 transactions per second under controlled execution conditions, and robust handling of diverse transaction values. A comparative evaluation of Proof of Authority (PoA), Proof of Stake (PoS), and Practical Byzantine Fault Tolerance (PBFT) confirms PoA as the most practical for IoT-enabled banking in Nigeria, balancing scalability, energy efficiency, and real-time validation. By situating blockchain within Africa’s digital economy and providing a context-sensitive consensus analysis, this study advances both the theoretical and applied understanding of secure, decentralized payment infrastructures. The findings lay the groundwork for real-world deployment of blockchain-based solutions to strengthen digital banking security and financial inclusion in emerging markets.
ABSTRACT Forgery of academic and professional certificates remains a major concern across institutions. Traditional centralized systems are prone to manipulation and single points of failure. This work presents a blockchain-based certificate issuance and verification platform developed using Spring Boot and the Ethereum Sepolia test network. The system supports multiple organizations where issuers register and are approved by an administrator before generating certificates. Each certificate is assigned a unique identifier, and a SHA-256 hash of its data is stored on the blockchain through smart contracts. The platform also automates PDF certificate creation with embedded QR codes and sends them via email. Additional features include bulk certificate generation, revocation support, and public verification without requiring a blockchain wallet. Experimental observations indicate an average issuance time of around 4 seconds and verification within 1.5 seconds. Keywords: Blockchain, Ethereum, Smart Contracts, SHA-256, Certificate Verification, Spring Boot, Web3j, PDF Automation
Leeladhar Chourasiya, Mr. Anand Jawdekar, Mr. Sanjay Patsariya, Ms. Aparajita Biswal · 7 authors
The blistering development of the decentralized technologies is transforming the conceptual and functional limits of the contemporary digital ecosystems. One of such innovations is blockchain, which is being presented as a core infrastructure of facilitating autonomous, trustless, and self-organizing systems, which has also been emphasized in recent academic conversations. The paper will examine how blockchain will be used to lay the foundations of autonomous societies where governance, economic dealings and social interactions will be implemented in the absence of a centralized force. The suggested framework is based on decentralized ledger technology, smart contracts, consensus mechanism, in order to promote transparency, security, and accountability on digital communities. The paper highlights the role of blockchain platforms (especially Ethereum-style architectures) in the development of decentralized autonomous organizations (DAOs) that serve as building blocks to bigger social organizations. Identity management, decentralized models of governance, token-based economies, and trustless interactions are some of the critical components that are analyzed. Moreover, the paper also looks at how emerging technologies such as artificial intelligence and distributed storage systems can be integrated to make autonomous environments more scalable, adaptable, and make decisions. Issues concerning scalability, regulatory limitations, interoperability, and ethical aspects are also presented and possible solutions and future research areas specified. The results indicate that blockchain infrastructure has the capacity to reinvent the social structure and provide decentralized, robust, and participative digital economies. The article is a contribution to the existing literature on next-generation sociotechnical systems and a strategic roadmap of fully autonomous digital societies development.
ABSTRACT We explore the risk‐return tradeoff of Decentralized Finance (DeFi). We construct three novel indices for different asset classes: Lending, Decentralized Exchanges, and Derivatives. Motivated by the cryptocurrency pricing framework of Liu and Tsyvinski, we investigate how DeFi assets comove with financial primitives. We document limited correlation with traditional equities, currencies, interest rates, and commodities. We further examine several DeFi‐specific factors. Bitcoin and Ethereum returns show no significant association with subsequent DeFi returns, highlighting a decoupling between base‐layer assets and application‐layer protocols. Meanwhile, we find some in‐sample associations with DeFi‐specific factors such as momentum, investor attention, and performance of centralized platforms. A novel book‐to‐market ratio constructed using Total Value Locked and market capitalization does not display a systematic relationship with returns. Finally, we find only limited and sector‐specific associations with traditional equity industries.
Currently blockchain platforms are not capable of managing sufficient transactions per second. And the gas fees? They make most real world scenarios essentially infeasible. We built Ledgerlink Both these bottlenecks can be linked together, using Ethereum. smart contracts with Arbitrum’s Layer-2 rollup mechanism. Hashing coupled with cryptography and consensus engine (supports both). PoW and POS) eliminate changes in the data. L2 part provides throughput of the order of 10x that of mainnet. you, gas prices are less than 90% lower. Tech stack wise – Solidity. TypeScript, Express, and Next.js TypeScript, optimally backend with express, next as a whole. Frontend tailwind. Simulated load tests were carried out. Enterprise-grade volumes, which promote volumes, are. and can be accomplished without the latency and cost nightmares that you will normally. see on Layer-1. In the present paper we are going to walk through our architecture, the decisions that we made on the way (some good, some we’d) re- consider, and the benchmarking deliverables.
Kunal Kumar, Mohammad Malik, Gujju Koushik, Nujetti Abinandhan
The evolution of blockchain technology has introduced innovative approaches for managing digital assets and transforming fundraising models through Non-Fungible Tokens (NFTs). However, many existing charity platforms continue to operate on centralized systems that restrict transparency, limit accountability, and fail to provide donors with verifiable proof of their contributions. In such systems, donors often have minimal visibility into fund utilization, and there is no direct linkage between their contributions and any traceable digital asset. Moreover, traditional charity and auction mechanisms rely heavily on intermediaries for transaction validation, data management, and operational control, making them susceptible to data manipulation, reduced auditability, and diminished user trust, while also lacking mechanisms to encourage active participation. To address these limitations, this research proposes a decentralized charity auction framework that integrates Blockchain technology with NFTs to ensure secure, transparent, and verifiable transactions. The system is developed using the Django Web Framework and leverages Web3 Technology along with Smart Contracts to automate and manage auction processes. Each auction item is uniquely tokenized as an NFT, guaranteeing authenticity and non-replicability. Users can register as donors or auction organizers, create NFTbased auctions, and participate through bidding or direct contributions. All transactions are permanently recorded on the blockchain, and NFT ownership is automatically transferred to the highest bidder or contributor, serving as a verifiable digital proof of participation. By removing intermediaries and ensuring immutable record-keeping, the system enhances trust, strengthens security, and introduces an incentive-driven participation model, thereby improving transparency, accountability, and efficiency in modern charity and fundraising ecosystems.
Awqaf (Islamic endowments) historically functioned as decentralized institutions financing education, healthcare, infrastructure, and social welfare across the Muslim world. Grounded in the principles of perpetuity and inalienability, they transformed private wealth into sustainable public goods, as highlighted by Monzer Kahf and Murat Çizakça, while also facing institutional rigidity concerns raised by Timur Kuran.This paper examines the evolution of Awqaf from classical asset-based models to innovative structures such as cash waqf, waqf sukuk, corporate waqf, and intellectual property waqf. It proposes the Integrated Digital Awqaf Ecosystem (IDAE) Framework to explain how digitalization enhances governance, transparency, financial integration, and socio-economic impact. The study concludes that digitally integrated Awqaf can become strategic pillars of sustainable development in contemporary Muslim economies.
Muxtorov Maqsudbek Sherzodbek o'g'li Almardanov Samariddin Abdixoliq o'g'li
This paper examines the comprehensive impact of digital transformation on the finance and accounting sectors. With rapid advancements in cloud computing, artificial intelligence, blockchain technology, and automation tools, traditional paradigms of financial reporting, auditing, and managerial accounting are being fundamentally redefined. The study analyzes how digital technologies enhance accuracy, efficiency, transparency, and scalability of financial operations across organizations of various sizes and industries. The findings demonstrate that digital transformation facilitates real-time financial reporting, automated bookkeeping, predictive financial analytics, fraud detection systems, and data-driven strategic decision-making through robotic process automation (RPA), machine learning, big data analytics, and distributed ledger technologies. The paper concludes with policy recommendations and organizational guidelines for effective and responsible digital transformation in financial management, emphasizing human oversight, continuous upskilling, and regulatory alignment.
Munaganti Anjali, Arra Nanda Kishore, Sirnapally Mithesh, Mr Lodangi Prabhat
Abstract—The crowdfunding sites that are in use today make use of a centralized system in which the funding and validation of crowdfunding campaigns are done by an authority figure. This has resulted in higher transaction fees and a lack of transparency in the way the funding is being done by donors. This paper aims to propose a Decentralized Crowdfunding Platform using blockchain technology to overcome the current challenges. A new crowdfunding system based on smart contracts using Ethereum is proposed. This new system will ensure a reliable environment for executing smart contracts. A new crowdfunding system based on smart contracts using Ethereum is proposed. This system will have a Startup Verifi-cation process and an Iteration-Based Fund Release process. In the current crowdfunding system, crowdfunding sites release the funds in bulk to the startup. In the new system that is being proposed, the funds will be released in stages. A new system of voting will also be implemented in the new system. This will enable donors to vote based on the cryptographic proofs and reports that are presented by the startup. The software development framework of the platform is based on an effective decentralized technology stack such as Solidity for smart contract development and execution, Hardhat for software development and testing, and React.js combined with Web3.js for front-end interface development. The incorporation of the blockchain technology stack guarantees that all financial transactions are transparent, secure, and tamper-proof. The efficacy of the proposed decentralized approach is measured by how effectively it avoids the costs of intermediaries, is auditable in real-time, and is democratic in nature for all donors. Index Terms—Blockchain Technology, Ethereum, Smart Con-tracts, Solidity, Decentralized Finance (DeFi), Crowdfunding, Decentralized Autonomous Organization (DAO), Iteration-Based Funding, Milestone Verification, Web3.js, Hardhat, Metamask, Trustless Execution, Cryptographic Transparency, Digital Wallet Authentication.
The rapid collapse of decentralized game economies, often characterized by the \textit{death spiral,} remains the most formidable barrier to the mass adoption of Web3 gaming. This paper proposes that the sustainability of an open game economy is predicated on three necessary and sufficient conditions: Anti-Sybil Resilience, Anti-Capital Dominance, and Anti-Inflationary Saturation. The first section establishes a theoretical proof of these conditions, arguing that the absence of any single dimension leads to systemic failure. The second section explores the dialectical relationship between these dimensions, illustrating how unchecked automation and capital-driven monopolies accelerate asset hyperinflation. In the third section, we introduce the Identity-Bound Asset Integrity Model (IBAIM) as a comprehensive technical solution. IBAIM utilizes Zero-Knowledge (ZK) biometric hashing and Account Abstraction (AA) to anchor asset utility to unique human identities through a privacy-preserving and regulatory-compliant architecture. By exogenizing biometric verification to trusted local environments and utilizing Zero-Knowledge Proofs of Identity (zk-PoI), the model ensures absolute user privacy. Furthermore, by implementing an Asymmetric Utility Decay (AUD) engine-whereby assets suffer a vertical 50% utility cliff upon secondary transfer-and an entropy-driven thermodynamic degradation mechanism., the model successfully decouples financial speculation from in-game merit. Finally, we apply this framework to analyze prominent historical failures in the GameFi sector, demonstrating that their collapse was an inevitable consequence of violating these core economic constraints. Our findings suggest that trading a degree of asset liquidity for system integrity is the only viable path toward long-term economic viability in decentralized virtual worlds.
The rapid growth of decentralized finance on Ethereum has facilitated the rise of fraudulent Ponzi schemes, which exploit blockchain immutability and pseudonymity to deceive investors. Existing detection methods, often fail to generalize to evolving attack strategies, while current multimodal approaches suffer from high computational overhead. To address these challenges, we propose LightPonzi, a lightweight multimodal framework that integrates transaction graphs, abstract syntax trees, and textual semantics of smart contracts. By leveraging GraphSAGE and DistilBERT, LightPonzi efficiently encodes structural, behavioral, and semantic features, which are fused for accurate classification. Extensive experiments on a curated dataset of Ethereum contracts demonstrate that LightPonzi achieves a balanced F1 score of 0.911 while processing each contract in 80.11 ms on average, outperforming state-of-the-art baselines in both effectiveness and efficiency. Our framework provides a practical solution for real-time Ponzi scheme detection.
This research examines the structural and paradigmatic mutation of the internal audit function in the face of the massive integration of distributed ledger technologies (Blockchain) and cognitive artificial intelligence (AI). Through an in-depth empirical analysis conducted on a targeted sample of n=156 decision-making professionals in the financial sector, this article highlights the legitimacy crisis currently faced by traditional control bodies, which are now confronted with the intrinsic opacity of automated systems. The quantitative results demonstrate that the obsolescence of auditors' technical skills is no longer merely an operational lag, but constitutes a direct systemic threat to bank governance and risk management. Drawing on continuous auditing and agency theories, this study conceptualizes and advocates for a radical hybridization of skills, coupled with an architectural overhaul of control frameworks, as a sine qua non condition to ensure the sustainability and ethics of institutions in an irreversible dematerialized financial ecosystem.
The article is devoted to the development of a hybrid strategy for the innovative growth of the Ukrainian neobank Monobank through the integration of cryptocurrency services in the context of the draft law on cryptocurrency legalization under consideration in the Verkhovna Rada. The relevance of the study is determined by the need to diversify neobanks’ income sources amid market saturation and regulatory changes in the field of digital assets. The classification of Monobank as a neobank is substantiated according to the criteria of the European Banking Authority: a fully digital model without physical branches, a client-centric business model, its own technological platform, and a methodology for rapid product development. A SWOT analysis of the bank’s competitive position revealed an imbalance between opportunities and threats under martial law, cyber risks, and regulatory uncertainty. A comparative analysis of the crypto-strategies of international neobanks Revolut and Nubank confirmed the advantages of the intermediary role over issuing a proprietary token. Revolut’s success is based on phased integration and obtaining regulatory licenses, while Nubank’s failure with its own token demonstrates the risks of hasty decisions without a clear regulatory strategy. The concept of the Monobank Crypto Hub has been developed with a three-phase implementation: the first stage focuses on basic functionality with mandatory transaction limits and an educational module to minimize reputational risks; the second stage provides for expanded functionality through staking and premium subscription; the third stage includes a full ecosystem with crypto-deposits and integrations with decentralized finance protocols. Financial modeling demonstrates a gradual achievement of break-even with emphasis on managing operational and reputational risks. The practical value of the study lies in the formation of a concrete roadmap for crypto-integration for Ukrainian fintech companies.
The overarching aim of this cumulative dissertation is to provide theoretical grounding and empirically informed design knowledge on (1) how blockchain can modernize intellectual property lifecycle management, (2) how decentralized autonomous organizations (DAOs) can unlock their full potential as an emerging governance form, and (3) how generative AI chatbots can provide reliable assistance in trust-sensitive and high-stakes contexts such as decentralized finance (DeFi) and academia. Motivated by growing frictions of digital markets—particularly in protecting and remunerating creative outputs and innovations—the dissertation consolidates research and develops transferable concepts for institutionally grounded, trustworthy digital systems. To attain the overarching research objective, this cumulative dissertation reports on six peer-reviewed research contributions embedded in a unifying socio-technical framework. The research contributions draw on systematic literature reviews, qualitative empirical studies (including case study and expert interviews), and design science research with mockup instantiations, addressing descriptive and prescriptive research questions in the field of information systems.
Héritier Kayembe Mpiana, Eugene mukendi Mbuyi, Jean Didier Mwambanzambi Batubenga, Pierre Motumbe Kasengedia
This paper proposes the design and evaluation of a secure electronic payment system based on the Ethereum blockchain, applied to the payment of academic fees. The objective is to enhance transparency, security, and automation of financial transactions within higher education institutions. The methodology relies on developing a prototype using smart contracts, tested on Ethereum testnets. Experimental results show that the system reduces processing times and improves transaction traceability [1]. The integration of Layer 2 solutions and stablecoins also helps reduce transaction costs and improve scalability. However, challenges remain, particularly regarding regulation and user accessibility. As a decentralized and programmable platform, Ethereum represents a major innovation capable of transforming traditional payment systems. The emergence of Ethereum-based academic fee payment systems is part of an accelerated digital transformation and the search for alternatives to conventional financial infrastructures. Since the introduction of Bitcoin, the global financial system has undergone a profound shift, marked by the adoption of decentralized technologies [3]. This study required an in-depth technical understanding of the Ethereum blockchain, along with critical, economic, and regulatory analyses [5].
Purpose This literature review aims to provide a comprehensive synthesis of Metaverse Finance (MetaFi), which combines emerging technologies such as blockchain, decentralized finance (DeFi) and metaverse technologies. The article proposes a novel three-layer MetaFi framework attempting to consolidate fragmented research on digital financial assets, decentralized intermediaries and immersive marketplaces online. Design/methodology/approach We conducted a systematic literature review (SLR) adopting PRISMA guidelines, by analysing 29 peer-reviewed articles that are either Scopus Q1/Q2 or ABDC A*/A journal-indexed, published between 2021 and 2025. We devised a structured review matrix, thematic synthesis and bibliometric validation to enable MetaFi framework. Findings The review identified three foundational layers of MetaFi: (1) Digital Financial Assets [Cryptocurrencies, Utility tokens, Stablecoins, Non-Fungible Tokens (NFT) and Security tokens]; (2) Decentralized Financial Intermediaries [Virtual banks, DeFi protocols, Decentralized Autonomous Organizations (DAOs)] and (3) Immersive Financial Marketplace (Virtual stock exchanges, Tokenized real estate platforms, Governance token markets). We identified six critical gaps, including empirical testing of metaverse models, governance effectiveness of DAOs, cross-platform interoperability, ESG perspectives, behavioural perspectives and regulatory challenges in MetaFi. Originality/value This review unifies the fragmented domains of DeFi, DAOs, NFTs and immersive marketplaces into a single MetaFi architecture. Its originality lies in revealing the MetaFi logic as to how digital/virtual assets, decentralized intermediaries and virtual markets blend as an integrated economy. By theorizing these interdependencies, this review positions MetaFi as a new institutional field of financial research, offering scholars a conceptual foundation, investors a structural lens and policymakers a roadmap to govern the next generation of digital finance.
D. A. Vidhate, Prajesh Gaikwad, Aditya Gadge, Abhijay Jadhav · 5 authors
The growth of financial technology has introduced Central Bank Digital Currency (CBDC), which is basically a digital version of money issued by central banks. In this work, a blockchain-based system is proposed that uses QR codes and UID numbers to make transactions easier and more secure. Blockchain helps keep a proper record of transactions so they cannot be easily changed or tampered with. Using QR codes makes payments quick and simple, especially for everyday use. The system also uses smart contracts to handle processes automatically. Since everything runs on a decentralized network, it reduces dependency on a single authority and lowers the chances of fraud. At the same time, user privacy is maintained by storing only encrypted verification data instead of actual personal details.
This study examines the factors contributing to cryptocurrency adoption in South Africa. This study utilized an exploratory research design that applied a qualitative technique. 10 key informants were selected using purposive sampling from organizations involved in the bitcoin industry in South Africa. The study demonstrates that the adoption of cryptocurrencies in the country is influenced by factors such as financial inclusion and access, innovation and entrepreneurship, economic diversification and regulatory frameworks, and teamwork. The challenges and hurdles encompass legislative ambiguity, cybersecurity risks, investor safeguarding, financial education and awareness, infrastructure limitations, and accessibility issues. The findings indicate that adopting cryptocurrencies can enhance financial inclusion, stimulate innovation and entrepreneurship, and tackle systemic problems in the financial industry. Nevertheless, the effective implementation and assimilation of cryptocurrencies in South Africa will necessitate a collaborative endeavour among all parties involved. Robust regulatory frameworks, comprehensive educational programmes, and cooperative endeavours are essential for maximizing the advantages of cryptocurrencies while minimizing the accompanying hazards.
The rapid emergence of contemporary financial concepts—such as decentralized finance, cryptocurrency, and algorithmic trading—has necessitated an advanced level of digital literacy to maintain and achieve financial well-being. This paper presents a comprehensive mixed-methods study to explore the intersection of these domains. The qualitative phase utilizes a News-Reflection Analysis (NRA) of 150 mainstream financial news articles from 2021 to 2025, yielding a robust coding framework and foundational propositions. Building upon these qualitative insights, the quantitative phase employs Partial Least Squares Structural Equation Modelling (PLS-SEM) on a simulated dataset of 450 respondents. We test a conceptual model integrating Contemporary Financial Concepts (CFC), Digital Literacy (DL), Financial Behavior (FB), and Financial Well-Being (FWB). Findings reveal that while CFC positively influences financial behaviour, digital literacy serves as a critical moderator, significantly amplifying the translation of complex financial knowledge into tangible well-being. This paper provides a Q1-journal-ready framework, complete with qualitative coding schemes, an advanced SEM path diagram, simulate hypothesis testing, and a rigorously validated 22-item measurement instrument.
Decentralized Finance (DeFi) lending protocols like Aave v3 rely on over-collateralization to secure loans, yet users frequently face liquidation due to volatile market conditions. Existing risk management tools utilize static health-factor thresholds, which are reactive and fail to distinguish between administrative "dust" cleanup and genuine insolvency. In this work, we propose an autonomous agent that leverages time-to-event (survival) analysis and moves beyond prediction to execution. Unlike passive risk signals, this agent perceives risk, simulates counterfactual futures, and executes protocol-faithful interventions to proactively prevent liquidations. We introduce a return period metric derived from a numerically stable XGBoost Cox proportional hazards model to normalize risk across transaction types, coupled with a volatility-adjusted trend score to filter transient market noise. To select optimal interventions, we implement a counterfactual optimization loop that simulates potential user actions to find the minimum capital required to mitigate risk. We validate our approach using a high-fidelity, protocol-faithful Aave v3 simulator on a cohort of 4,882 high-risk user profiles. The results demonstrate the agent's ability to prevent liquidations in imminent-risk scenarios where static rules fail, effectively "saving the unsavable" while maintaining a zero worsening rate, providing a critical safety guarantee often missing in autonomous financial agents. Furthermore, the system successfully differentiates between actionable financial risks and negligible dust events, optimizing capital efficiency where static rules fail.
Purpose The purpose of this study is to comparatively examine how different blockchain consensus mechanisms – Proof-of-Work (PoW) and Proof-of-Stake (PoS), including the transition from PoW to PoS – shape sustainability, scalability and governance outcomes in enterprise-relevant blockchain networks. By analysing Bitcoin, Ethereum and Cardano using a mixed-methods design, the study moves beyond single-metric evaluations and provides an integrated socio-technical assessment of consensus architecture. In doing so, it contributes to theory, practice and policy by clarifying how consensus design choices influence the development of sustainable and resilient blockchain infrastructures. Design/methodology/approach This study adopts a mixed-methods, documentary comparative research design. It analyses Bitcoin (Proof-of-Work) and Ethereum (PoW-to-PoS transition) as primary empirical cases using secondary quantitative indicators (energy consumption, transaction throughput and finality) and qualitative document analysis of protocol and governance materials. Sustainability, scalability and governance are employed as analytical lenses to guide cross-case comparison. Qualitative data are examined through structured thematic coding to contextualise quantitative trends. Findings The findings indicate that Proof-of-Stake delivers substantial sustainability and scalability advantages over Proof-of-Work. Ethereum's transition to PoS resulted in a reduction in energy consumption of over 99%, while enabling gradual improvements in transaction throughput and settlement finality relative to Bitcoin's static baseline. However, these performance gains are accompanied by governance trade-offs, including risks of validator concentration and delegator passivity. The analysis suggests that although PoS improves environmental and operational efficiency, its long-term effectiveness depends on governance mechanisms capable of preserving decentralisation and accountability. Research limitations/implications First, it relies primarily on secondary data and documentary sources, which may not fully capture real-time network dynamics or evolving governance practices. Second, the comparative analysis focuses on a limited set of major blockchain networks – Bitcoin, Ethereum and Cardano – which constrains the generalisability of the findings to other platforms with different consensus architectures. Despite these limitations, the study provides important implications for researchers, practitioners and policymakers by highlighting the central role of consensus design in shaping sustainability, scalability and governance outcomes. Future research could extend this framework to additional blockchain platforms, incorporate primary stakeholder interviews and employ real-time network telemetry to refine performance and energy-consumption assessments. Practical implications The findings offer actionable guidance for blockchain developers, enterprises and policymakers. Developers should prioritise energy-efficient consensus designs and implement governance mechanisms that mitigate validator concentration. Enterprises seeking scalable and sustainable blockchain solutions may benefit from PoS-based networks that offer lower operational costs and faster transaction finality. For policymakers, the results highlight the importance of regulatory frameworks that incentivise energy-efficient blockchain infrastructures while safeguarding decentralisation, transparency and open participation across staking and governance systems. Social implications The transition from energy-intensive Proof-of-Work to Proof-of-Stake consensus mechanisms has broader social implications for trust, participation and digital inclusion in blockchain ecosystems. Reduced energy consumption addresses public concerns around environmental harm and social legitimacy of blockchain technologies. However, PoS systems may introduce participation inequalities if staking requirements favour wealthier actors. These findings highlight the importance of inclusive governance designs that promote broad validator participation, transparency and accountability, ensuring that sustainability gains do not come at the expense of decentralisation or equitable access to blockchain-based infrastructures. Originality/value This study provides an original comparative assessment of blockchain consensus mechanisms by integrating sustainability, scalability and governance within a single analytical framework. Unlike prior research that often examines energy efficiency or performance in isolation, the study combines quantitative benchmarking with qualitative governance analysis to reveal the socio-technical trade-offs associated with Proof-of-Stake adoption. By analysing a PoW-to-PoS transition alongside a mature PoW system and drawing on PoS-native platforms in the literature as comparative reference points, the article offers new insights into how consensus design choices shape the long-term viability of enterprise-relevant blockchain networks.