Abstract While the volatile and unregulated cryptocurrency market is growing rapidly, little is known about what drives individual investor motivation to participate. This study investigates how trust, a proven predictor for stock market participation, is linked to cryptocurrency participation among 1,519 individual investors in Denmark, Finland and Sweden, countries characterised by high levels of digital adoption, trust and stock market participation. Our results show that individuals who trust strangers in relation to financial matters are more prevalent cryptocurrency participants, both in terms of current holdings and intended future holdings, compared to less trusting individuals. Furthermore, trust reduces how risky individuals consider cryptocurrencies to be and cryptocurrency knowledge raises people’s risk tolerance. Both trust and knowledge, therefore, contribute to increased cryptocurrency participation. Our study contributes to the debate about the mitigating role of trust for household investment decision making, extending its scope to the novel cryptocurrency market. This research is relevant for actors in the cryptocurrency market including developers, service providers, investors, and financial market regulators.
Shiva Johri, Amit Verma, Megha Sharma, N. Deepalakshmi
Cloud-based centralized credit scoring is accurate but suffers from network delays, high bandwidth costs, privacy concerns, and non-transparent decision-making processes. We present an edge intelligent finance framework that combines shallow neural models with symbolic, rule-based reasoning to make real-time, transparent loan decisions in the wild over low-cost edge devices. Trained via federated learning on popular benchmarks (German Credit, LendingClub, FICO), the framework achieves competitive discrimination performance (AUC ≈ 0.83) while reducing inference latency to 50ms and energy use to 0.3J/inference compared to their centralized deep models. An interpretable validation layer is proposed to encode fairness constraints and regulation rules, which outputs the interpretable rationales and group-gap metrics (<0.05). Under bandwidth constraints, stress tests indicate that accuracy and response times remain stable, as inference is performed locally. Our results demonstrate that under edge AI, efficient lending workflows and peer-to-peer ecosystems can be enhanced with privacy, fairness, and compliance through a series of information yellow-red-green cycles. We also address scalability, rule complexity, and deployment recommendations for financial institutions and regulators.
The authors presented a blockchain-backed cloud artificial intelligence (AI) system for smart contract risk assessment in decentralized finance (DeFi) that replaces the coarse-grained structure-awareness of graph neural networks (GNNs) with fine-grained structure-awareness while preserving contextually-rich interactions between nodes that are similar to transformer encoders. The program is able to identify a wide range of vulnerabilities and assign unambiguous risk rankings to smart contracts. People can be educated about decentralized finance without sacrificing their privacy through the use of a method called “federated learning.” This is just a single component of the job. The platform is constructed on top of a robust and adaptable cloud platform that utilizes on-chain risk evaluations that are anchored to ensure that they are able to be audited. The system has been proven to be accurate, fast, and simple to relocate based on a large number of simulations and real-world measurements of prohibited traffic behaviors, delay analysis, and economic consequences. The research also makes official the automatic and reliable risk analysis in decentralized finance, which makes the DeFi ecosystems significantly safer and more open.
David Davó, Javier Arroyo, Samer Hassan, Silvia Semenzin
Despite the hype and scandals around blockchain, there are valuable applications beyond finance, such as decentralized autonomous organizations (DAOs). DAOs are self-governed online communities where users vote and manage budgets transparently. In under a decade, DAOs have evolved from theory to managing billions of dollars. Blockchain enthusiasts launched DAO platforms like our case study, “DAOstack”, promising large-scale collaboration and quickly securing millions in funding. Today, we can critically evaluate to what extent the platform followed up on its promises. In this work, we analyze DAOstack using a mixed-methods approach combining quantitative and qualitative data. In particular, we quantitatively examined its 92 organizations in terms of size, lifespan, activity, power concentration, and the effectiveness of its governance model. We also interviewed in-depth 6 DAOstack core users to delve deep into their experiences using the platform. Our analysis shows that DAOstack mainly hosted small, short-lived DAOs, with some exceptions. Its governance model was functional, but the economic incentives underpinning it were ineffective. The analysis of the interviews reveals interesting aspects such as the power imbalances due to token ownership and reputation, and that the voting system, though innovative, was affected by issues of cost and complexity. We conclude by discussing the challenges these platforms face and advocating for a multidisciplinary experimental approach for future DAO designers.
The constant evolution of Decentralized Finance (DeFi) calls for the continuous monitoring of its developments and implications through a critical review of the academic literature. While DeFi holds promise for enhancing economic activity by expanding market access for enterprises and promoting financial inclusion, concerns remain that digital assets are primarily used for speculative purposes rather than for financing the real economy. This study employs bibliometric methods to investigate whether and how the current academic literature addresses the potential influence of DeFi on real economic dynamics. Employing bibliometric methods—including co-citation, bibliographic coupling, and keyword co-occurrence analyses—focused on DeFi-related publications in the Economics and Business subject areas within the Scopus database, the study maps the knowledge base, author networks, and thematic trends and their temporal evolution, supporting regulators, researchers, and practitioners. The findings reveal that the integration of DeFi with the real economy has received limited attention in scholarly research. This highlights the need for further investigation into DeFi’s implications for financial stability, productive investment, and long-term economic growth.
Blockchain technology is evolving rapidly, bringing significant opportunities as well as complex challenges, particularly in the area of smart contract security This paper addresses these challenges by presenting an enhanced version of Slither, a static analysis framework, specifically designed to improve vulnerability detection in Ethereum-based smart contracts. Our contributions target critical vulnerabilities of reentrancy, unchecked call return values, and access control issues, which pose serious threat to decentralized apps (dApps). The enhanced Slither tool incorporates advanced detection methodologies, including refined control-flow analysis, sophisticated pattern recognition, and comprehensive visibility checks. Experimental evaluation demonstrates that this proposed tool significantly improves accuracy, precision, recall, and F1-score across various metrics, while also effectively reducing false positives. This advanced model not only strengthens the security posture of smart contracts but also contributes to fostering a more secure and reliable blockchain ecosystem.
Public procurement in Africa is hindered by systemic corruption, inefficiency, and a lack of accountability, undermining economic growth and public trust. This analysis examines the transformative potential of smart contracts, built on Distributed Ledger Technology (DLT), as an innovative solution to enhance transparency and integrity in the continent's procurement systems. The study analyzes how smart contracts, by embedding procurement rules into immutable code, minimize human discretion and create tamper-proof audit trails for processes from bid submission to payment. Drawing on global precedents and emerging African cases (including DLT use in Guinea-Bissau's public wage bill), the paper finds that while smart contracts are technically feasible and highly beneficial, their successful adoption is contingent upon overcoming significant structural barriers. These challenges include adapting outdated legal frameworks to recognize the legal personality of contract code, addressing low digital infrastructure compatibility, and managing cultural resistance from officials who benefit from the existing discretionary systems. The paper concludes with key recommendations for African governments, emphasizing the necessity of parallel legal reform, targeted capacity building, and strong political commitment to leverage this technology for achieving Sustainable Development Goal 16 (Peace, Justice, and Strong Institutions).
This article analyzes the impact of global financial technologies—specifically Blockchain, decentralized finance systems (DeFi), and Central Bank Digital Currencies (CBDC)—on the banking system within the IMRAD framework. The paper examines the transformational influence of modern FinTech innovations on traditional banking services, their role in expanding financial inclusion, and the associated issues of security and regulatory challenges. The study also highlights the prospects of implementing such technologies in developing countries like Uzbekistan.
Decentralized Finance (DeFi) has been identified as an emerging technology for a transformative force in financial intermediation, introducing a trustless, programmable, and inclusive financial ecosystem. This paper identifies, show, and explores the integration of DeFi into traditional finance, focusing on how DeFi platforms are redefining financial intermediation and incorporates not only the financial perspective but also an IT-systems perspective, detailing architectures, data structures, and integration frameworks that enable collaboration between DeFi platforms and traditional financial institutions. The research identifies the limitations of current financial systems, evaluates the technical and regulatory challenges of integration, and highlights how DeFi innovations can increase efficiency, transparency, and inclusivity. Key components of this integration, such as smart contracts, decentralized lending, and interoperable frameworks, are analyzed along with their potential to overcome limitations in traditional finance. The paper concludes with recommendations for a mutually beneficial model combining DeFi and traditional finance to create a robust, secure, and inclusive global financial ecosystem.
This study is mainly indicated towards the emergence of non-fungible tokens (NFTs) as the new digital asset for investment. A comparative analysis is made between NFTs and the fungible tokens (cryptocurrency). It is observed that NFTs are highly volatile in nature, yet safer way to invest as it is secured by code, which cannot be easily hacked by scammers During the COVID-19 Pandemic, digital investments have become a trend among the crypto investors. It was a great alternative for the fungible investors. In today’s technological aided society, digital investments have become very common and is investors find it more convenient. Investment in the NFTs and FTs is more of a status symbol for the higher class of society. The future of NFTs is very diverse and endless. The scope of NFTs is very much diverse in the gaming sector and also in the real estate sector. The study stated that the major difference between both the assets is the uniqueness of each NFTs, whereas all the FTs are similar in nature. The digital asset is defined as something which holds value, has ownership and is discoverable on the digital platform. Lastly, the study discusses the various digital assets which include the stablecoins, utility tokens and security tokens.
The increasing complexity and sophistication of financial fraud have necessitated more effective and real-time solutions for monitoring, detecting, and preventing illicit activities in the financial sector. Blockchain technology, with its inherent features of decentralization, immutability, and transparency, has emerged as a promising tool to address these challenges, particularly when integrated with Regulatory Technology (RegTech) systems. This explores the potential of blockchain-powered RegTech solutions for enhancing fraud detection and supporting legal oversight in financial institutions. Blockchain’s decentralized ledger system provides a secure and transparent environment where financial transactions can be monitored in real time. The integration of machine learning algorithms with blockchain analytics allows for the identification of suspicious patterns and anomalies, enabling rapid detection of fraudulent activities. Additionally, blockchain facilitates the automation of compliance reporting, reducing operational costs and ensuring regulatory standards are met with minimal human intervention. The use of smart contracts further streamlines the enforcement of compliance rules, providing a seamless and tamper-proof audit trail. Furthermore, blockchain has the potential to harmonize international compliance standards, enabling more efficient cross-border regulatory enforcement. Through its use in decentralized identity verification and AML (Anti-Money Laundering) systems, blockchain can enhance the traceability and transparency of financial transactions, addressing the challenges of jurisdictional fragmentation and inconsistent regulations across countries. Privacy-preserving technologies, such as zero-knowledge proofs, also ensure that data protection laws like GDPR are respected while maintaining regulatory oversight. This concludes by highlighting the substantial benefits blockchain-powered RegTech systems offer for real-time fraud detection and regulatory compliance, urging financial institutions and regulators to collaborate on adopting these technologies to safeguard the integrity of global financial systems. Keywords: Harnessing, Blockchain-powered, RegTech systems, Real-Time, Fraud Detection, Legal Oversight, Financial Institutions.
Purpose –this paper aims to examine the impact of the integration between Extensible Business Reporting Language (XBRL) and Smart Contracts, which represent the second generation of the decentralized ledger Blockchain, on the transition from continuous auditing to Real-time Auditing. Design/methodology/approach – Using Exploratory Study , this study examines the impact of the integration between XBRLand Smart Contracts on the transformation from continuous Auditing to Real-time Auditing. Findings – This paper finds that the XBRL- Smart Contracts is a good way to activate real-time Auditing because of the characteristics of XBRL and Smart contracts based on blockchain that can support real-time Auditing, including transparency, privacy, decentralization, and pre-validation of operations at the same time as they occur with no possibility of modification or fraud. Therefore, Smart Contracts is not a substitute for XBRL, as the Blockchain is a ledger through which transactions can be conducted, and XBRL is the standard that can standardize the terms and standards for the items that are exchanged in accounting in those transactions, which means that XBRL supports Smart contracts based on blockchain in transparency and trust in transactions. There for, this paper finds that the XBRL- Smart contracts based on blockchain integration affects significatively to transfer from continuous auditing to real time auditing. Originality/value – This paper contributes to the literature on Provide a proposed A Prospective framework for the integration between XBRL and Smart Contract to transfer from continuous Auditing to Real time Auditing.
Ethereum ist seit Jahren die größte Smart-Contract-Blockchain und nach Bitcoin die zweitgrößte Blockchain-Plattform. Smart-Contracts, die als dezentrale Anwendungen beschrieben werden können, laufen auf einer gemeinsamen Rechenplattform, auf der alle Teilnehmer auf einer geteilten Codebasis arbeiten. Zur Absicherung ist es nötig, dass ein Konsens über die Ein- und Ausgaben aller Smart-Contracts geschaffen wird. Die Ausführung von Smart-Contract-Code verbraucht sogenannte Gas-Einheiten, die als eine Art Treibstoff betrachtet werden können. Gas-Einheiten zeigen den erforderlichen Rechenaufwand an und haben direkte Auswirkungen auf den realen Energieverbrauch. Daher sollten idealerweise alle Smart-Contracts so implementiert sein, dass sie möglichst wenig Gas-Einheiten verbrauchen. Derartige Codeoptimierungsansätze sind nicht trivial. Zum Zeitpunkt des Verfassens dieser Diplomarbeit gibt es bereits solche Mechanismen, welche teilweise direkt in den gängigen Compilern integriert sind. Solche Mechanismen basieren in der Regel auf festen Mustern, welche manuell beschrieben werden müssen und dann auf Smart-Contracts angewendet werden können. In dieser Arbeit haben wir untersucht, ob klassische Verfahren zur Erkennung von Codeähnlichkeiten verwendet werden können, um Optimierungsmuster automatisch aus Quellcode-Repositories ableiten zu können. Zunächst haben wir einen Symbolic-Execution-Ansatz untersucht, welcher sich aufgrund von technischen Einschränkungen und der Abhängigkeit von veralteten Compiler-Versionen als ungeeignet erwies. Daraufhin haben wir einen Fingerprinting-Ansatz basierend auf Kontrollflussgraph-Blöcken gewählt. Mithilfe von Slither konnten wir Metriken wie Cyclomatic-Complexity, Fan-Out und Informationsfluss-Metriken extrahieren und anschließend Distanzen zwischen Codestücken berechnen, um mit den Ergebnissen potenzielle semantische Code-Klone zu erkennen. Wir haben die Evaluierung unseres Ansatzes auf 1.200 manuell markierten Smart-Contracts aus einem Datensatz mit 160.000 Einträgen durchgeführt, was zu 574 Vergleichen führte und konnten eine korrigierte Genauigkeit von 88% für die Erkennung von semantischen Code-Äquivalenzen auf Blockebene erzielen. Für 1.300 Code-Paare haben wir zusätzlich eine Gasverbrauchsmessung durchgeführt, indem wir die Blöcke in generierte Smart-Contracts verpackt und auf einer lokalen Blockchain ausgeführt haben. Dabei konnten wir tatsächliche gasreduzierende Codeänderungen identifizieren. Trotz einiger wesentlichen Einschränkungen zeigt das, dass das Mining gasoptimiertem Codes aus versionierten Source-Code-Repositories mittels Code-Metriken möglich ist.
Islam Abdeljawad, Ahmad Tina, M. Kabir Hassan, Mamunur Rashid
The aim of this comprehensive review of the papers published on the Scopus database is to gain insights into the various indicators that determine the level of market efficiency within the global cryptocurrency markets. We have employed a series of bibliometric and content analyses on 3,224 papers published during 2014–2024. Findings indicate that the scholarly literature on cryptocurrency exhibits a varied range of perspectives, frequently encompassing multiple academic disciplines such as economics, finance, accounting, technology, and engineering. We present three significant findings. First, despite a growing list of recent studies supporting some efficiency, cryptocurrency assets frequently deviate from conventional norms of market efficiency. Herding, co-movement, sentiment, and overconfidence are the major contributors behind the inefficient cryptocurrency market. Second, the intricate nature of these assets and their lack of connection to fundamental economic value contribute to inconsistencies, instability, and ambiguity. Third, regulators are expected to intervene with prudent and globally collaborative regulations to optimize the potential of this market. In this discourse, we analyze the potential consequences derived from various frameworks and methods, with the aim of informing forthcoming scholarly investigations.
Patikiri Arachchige Don Shehan Nilmantha Wijesekara
Gaming is the notion of playing electronic games that involves users in the form of avatars or characters engaging with an interactive digital experience to achieve a specific gaming objective. Blockchains can enhance the overall gaming platform by helping to provide auditing, transparency, incentivization, security, and verification features in gaming. We analyze distinct blockchain-stemmed gaming structures, understand 11 tasks of blockchain-stemmed gaming reflection, and investigate them extensively regarding gaming- and blockchain-linked qualities. We packed an inaugural sample of 94 paper origins by extracting the papers for filtering standards chased down from E-collections, imposing a systematic and longish quality assessment scheme. Derived from the study, in blockchain-stemmed gaming, blockchain can support game auditing (C1), game incentivization (C2), gamification (C3), cooperative game play (C4), game fraud prevention and fair play (C5), game DApps with extendibility (C6), game asset ownership protection and asset transactions (C7), game user-produced elements security (C8), game credential verification (C9), game rule transparency (C10), and crypto gaming (C11). Extensive investigation discovers that in blockchain-stemmed gaming, 21.7% exploit gamification (C3), 75.6% exploit linear blockchain, and 10.8% exploit PoS consensus. As deficits, consensus approaches like proof of authority and stake, and unconventional blockchain are rarely used, while blockchain-based gaming concepts such as C1, C8, and C10 are deficient. Ultimately, we expose the advantages and asperities of the reflection of blockchain-stemmed gaming and then extend offers to shrink them.
A. Ammupriya, Chris Laurel S, H Vaishnavi, Aarthi N · 6 authors
Decentralized finance systems with lower costs, faster turnaround times, and a lower risk of fraud could enable crossborder financial transactions. By their very nature, these organizations possess inadequate fraud detection measures and opacity. Through the use of smart contracts and decentralized ledgers, the blockchain-based solution offers a means of eliminating middlemen, which can reduce processing times and costs. Additionally, the proposed system utilizes machine learning (ML) algorithms for instant fraud detection and employs cryptography for security. The results suggest that the proposed system is superior in terms of decision accuracy, with a decision accuracy of 94.2%, a decision time of 5 minutes, and only 20% of the need for human interaction. These are in comparison to the various existing systems that require human involvement, which can reach up to 85%. In addition, it outperforms the existing systems with 96.5% compliance and 91.6% anomaly detection, leading to enhanced risk identification, better governance, and increased compliance. It improves the efficiency, security, and transparency of crossborder payments.
The rapid development of financial technology has introduced cryptocurrency as a transformative innovation within the global financial system, raising fundamental questions regarding its compatibility with value-based financial models, particularly Islamic banking. Grounded in Sharīʿah principles that emphasize ethical finance, risk-sharing, asset-backed transactions, and the prohibition of ribā, gharar, and maysir, Islamic banking faces both opportunities and challenges in responding to the emergence of decentralized digital assets. This study aims to explore how Islamic banking can engage with cryptocurrency while maintaining its normative and ethical foundations, as well as to identify the key constraints that limit institutional adoption within global finance. Employing a qualitative research approach, the study conducts a systematic and interpretive review of scholarly literature, regulatory frameworks, and classical as well as contemporary Sharīʿah sources related to Islamic finance, blockchain technology, and cryptocurrency governance. The analysis reveals that blockchain technology demonstrates substantial alignment with Islamic banking principles through its transparency, traceability, and decentralized verification mechanisms, offering institutional potential in areas such as payments, trade finance, and smart contracts. However, the findings also indicate that cryptocurrency markets are characterized by high volatility, speculative behavior, weak real-sector linkage, and fragmented regulatory oversight, which raise significant ethical, financial, and governance concerns for Islamic banking institutions. Regulatory divergence and inconsistent Sharīʿah interpretations further complicate cross-border implementation and scalability. The study concludes that Islamic banking should adopt a selective and principle-oriented approach to cryptocurrency, distinguishing between permissible technological infrastructure and ethically problematic market practices.
Surenthran David, S. Aravinth, Chris Sherin D, Mohamed Issath S · 6 authors
The banking sector is disrupted by the development of Decentralized Finance (DeFi) based on blockchain technology. DeFi provides permissionless, trustless, and programmable services. This article looks at how DeFi is changing the traditional banking sector from a blockchain viewpoint. DeFi both threatens and offers opportunities to conventional banks by eliminating middlemen, lowering costs of transactions, improving financial inclusion, and facilitating real-time asset settlement. For this research, we use a unique approach combining financial network modeling and smart contract analysis to measure the efficiency, security, and scalability of DeFi protocols compared to centralized banking systems. While the findings suggest that DeFi could be more accessible, efficient, and open than existing financial infrastructures, they also show that there are real problems with regulation, security, and systemic risk. This work adds to our knowledge of the changing dynamics between traditional finance and DeFi by providing a blockchain-based model for the potential interplay between these two paradigms in the future.
Digital currencies such as cryptocurrencies and central bank digital currencies (CBDC.s) have transformed the financial transactions and economies across the globe. The monetization of such digital assets hinges on data driven strategies, with block-chain analytics, market trends, and economic indicators. This paper explores direct and indirect revenue models, focusing on trading, stacking, decentralized finance (DeFi), and block-chain analytics. Additionally, it examines regulatory and ethical challenges while presenting case studies of successful monetization strategies. The research highlights how businesses and investors can utilize big data and AI-driven insights to maximize profitability in the digital currency market. The study also explores emerging trends in digital currency adaption and discusses potential risks associated with these innovative financial tools, including regulatory interventions, technological advancements, and security threats.
K. Myrzabekkyzy, G. Lukhmanova, B. Dosanov, A. Bolganbayev · 5 authors
This article, within the context of modern financial technology development, analyzes the impact of decentralized finance (hereafter - DeFi) on the traditional financial system and its criminal-risk aspects. The study aims to describe DeFi operating mechanisms (decentralized architecture and smart contracts), systematize the directions of change in banking, lending, insurance, and investment services, and identify the main types of misconduct and fraud while proposing preventive measures. The paper clarifies DeFi’s operational features, the role of smart contracts, and the nature of decentralization, and examines DeFi’s position across traditional financial service segments. Types of offenses and fraudulent schemes occurring on DeFi platforms are identified, and prevention measures are proposed. A comparison between DeFi and traditional finance is provided, highlighting key advantages and disadvantages and offering recommendations to reduce criminal risks.
Abstract Decentralized Autonomous Organizations (DAOs) promise to transform governance through blockchain-enabled transparency and communal decision-making. However, unresolved legal responsibilities and speculative governance token dynamics complicate their ability to maintain trust, encourage participation, and secure legitimacy. Drawing primarily on Social Capital Theory (SCT), this study shows how bonding, bridging, and linking social capital intersect with liability ambiguities and token concentration to undermine institutional confidence and grassroots engagement. Public Goods Theory (PGT) clarifies how free-rider tendencies can deter infrastructural support, while Principal-Agent Theory (PAT) highlights incentive misalignments when whales prioritize short-term gains over collective welfare. Through a theoretical lens, this study illuminates how token-based power asymmetries, a lack of regulatory clarity, and conflicting motivations strain the viability of DAOs in fulfilling the promise of decentralized governance. In synthesizing these frameworks, this study advocates tailored governance strategies, ranging from reputation-based voting models to legally compliant organizational wrappers, to mitigate power imbalances, foster inclusive decision-making, and ultimately strengthen DAOs’ resilience in an evolving blockchain ecosystem. By bridging the sociological, economic, and legal perspectives, this study illustrates the interplay of trust, accountability, and incentives that shape DAO sustainability.