Son, Do Hai, Hieu, Le Vu, Khoa, Tran Viet, Alem, Yibeltal F. · 8 authors
Blockchain technology has experienced rapid growth and has been widely adopted across various sectors, including healthcare, finance, and energy. However, blockchain platforms remain vulnerable to a broad range of cyberattacks, particularly those aimed at exploiting transactions and smart contracts (SCs) to steal digital assets or compromise system integrity. To address this issue, we propose a novel and effective framework for detecting cyberattacks within blockchain systems. Our framework begins with a preprocessing tool that uses Natural Language Processing (NLP) techniques to transform key features of blockchain transactions into image representations. These images are then analyzed through vision-based analysis using Vision Transformers (ViT), a recent advancement in computer vision known for its superior ability to capture complex patterns and semantic relationships. By integrating NLP-based preprocessing with vision-based learning, our framework can detect a wide variety of attack types. Experimental evaluations on benchmark datasets demonstrate that our approach significantly outperforms existing state-of-the-art methods in terms of both accuracy (achieving 99.5%) and robustness in cyberattack detection for blockchain transactions and SCs.
New technologies, such as blockchain, are designed to address various system weaknesses, particularly those related to security. Blockchain can enhance numerous aspects of traditional banking systems by transforming them into digital, immutable, secure, and anonymous ledger. This paper proposes a new banking application ALBank, which is based on blockchain and smart contract technologies. Its functionality relies on invoking functions within smart contracts deployed on the Ethereum blockchain. This approach enables decentralization and enhances both security and trust. In this context, the paper first presents a critical analysis of existing research on blockchain and traditional banking systems, with a focus on their respective challenges. It then examines the Know Your Customer (KYC) process and its various models. Finally, it introduces the design and development of ALBank, a decentralized banking application built on the Ethereum blockchain using smart contracts. The results show that the integration of blockchain and smart contracts effectively addresses key issues in traditional banking systems, including centralization, inefficiency, and security vulnerabilities by storing critical data on a decentralized, immutable ledger, managing processes autonomously, and making transactions transparent to all users.
The growing reliance on digital financial services necessitates a secure, efficient, and privacy-centric approach to identity verification and Know Your Customer (KYC) compliance. Traditional identity management systems rely on centralized databases, making them susceptible to data breaches, inefficiencies, and regulatory constraints. Over 10 billion identity records have been exposed in centralized KYC breaches, leading to a 60% increase in financial fraud cases. The rise of Decentralized Finance (DeFi) has further complicated KYC compliance, requiring innovative solutions that balance privacy and regulatory requirements. This paper proposes a Web3-powered decentralized identity framework that leverages blockchain technology, self-sovereign identity (SSI), verifiable credentials (VCs), and zero-knowledge proofs (ZKPs). By eliminating reliance on centralized authorities, our system enhances data privacy, reducing personally identifiable information (PII) disclosure by 80% while ensuring compliance with AML and GDPR regulations. The integration of zk-SNARKs enables trustless identity verification with an average proof generation time of 12.5 seconds, significantly reducing the 3–5 day verification period required by traditional systems. Smart contract-based KYC automation eliminates intermediaries, cutting compliance costs by 40% and reducing fraud risk by 60%. Through comparative analysis, we highlight that decentralized KYC improves security, cost-effectiveness, and scalability compared to traditional models. Performance evaluation confirms that transaction throughput remains within acceptable blockchain limits, with gas costs stabilized at 35,000–55,000 Gwei per verification request. Despite challenges in regulatory adaptation and zk-SNARK scalability, the proposed model demonstrates the feasibility of Web3-driven identity management for trustless, privacy-preserving, and compliant financial ecosystems.
This study examines the role of blockchain-based smart contracts' influence on financial transparency and effectiveness in the economic activities of the emerging markets. In this study, the researchers utilised a mixed-method approach that includes a systematic literature review, comparative case studies from Africa, Southeast Asia, and Latin America, and expert interviews. The research findings evidence that the adoption of smart contracts can lower transaction costs, eliminate intermediary services, improve trust in financial systems, and serve as alternatives to the current financial systems. The results further demonstrate that smart contracts can improve financial inclusion through low-cost microfinance, insurance, and trade finance solutions, as well as enhance trust and transparency with immutable records and real-time auditing. Nevertheless, weaknesses in infrastructure, digital literacy, and regulatory uncertainty create difficulties for adoption. In addition, the study augments the existing prior research emphasising the impacts of financial technology innovation in emerging markets by offering findings that are beneficial to the market stakeholders including policymakers, financial services institutions, and technology innovators, by effectively positioning blockchain-based solutions implementation as better and viable option that can drive inclusive financial development in the emerging economies.
This chapter presents a comprehensive exploration of the evolving landscape of financial technology (FinTech), highlighting the transformative role of innovations such as digitization, blockchain, artificial intelligence (AI), and data analytics. It traces the historical evolution of FinTech, from early electronic banking systems to the advent of decentralized finance and mobile payment solutions. The current FinTech ecosystem is examined through the lens of technological convergence, regulatory evolution, digital payment adoption, and the rise of ESG investing. Emerging trends, including open banking, robo-advisors, and RegTech, are discussed alongside the sector’s pivotal challenges—ranging from data privacy to regulatory compliance and talent acquisition. The chapter also identifies key opportunities for collaboration and experimentation through ecosystem partnerships and regulatory sandboxes. 78 Looking ahead, it forecasts continued disruption, embedded finance growth, and the expanding impact of FinTech on financial inclusion and sustainability. This forward-looking analysis underscores the sector’s potential to reshape global financial systems while emphasizing the need for adaptive strategies, robust governance, and inclusive innovation.
This article explores the application of financial technologies in the auditing of decentralized finance (DeFi) and how these technologies can improve the audit process. The research aims to identify the main challenges faced in DeFi auditing and to offer recommendations for strengthening audit methodologies using financial technologies (FinTech). The article discusses decentralized finance and its innovative management principles based on blockchain technology, which fundamentally transforms traditional financial systems. The study identifies key risks associated with DeFi, such as vulnerabilities in smart contracts and the lack of regulatory frameworks. The theoretical foundation includes a detailed analysis of the differences between traditional and decentralized finance, highlighting DeFi’s advantages – lower operational costs, greater accessibility, and transparency – while addressing regulatory and security challenges. The research methodology is based on scientific literature analysis and the classification of FinTech tools according to established criteria to evaluate the effectiveness of audit methods and their potential for improvement. The main findings show that FinTech tools, such as artificial intelligence (e.g., decision tree models) and blockchain technology, enhance the reliability and speed of DeFi audits while highlighting the need for a more robust regulatory system. This article is relevant due to the rapid growth of the DeFi sector and its importance in the digital transformation of the financial industry. Moreover, this research aims to classify the most widely used financial technology tools according to their functions and analyze their impact on traditional and decentralized finance auditing processes, offering insights for improving audit methodologies.
This paper investigates the integration of Artificial Intelligence (AI) agents into blockchain wallets to enhance security, usability, and automation. The study proposes using Account ion (ERC4337) combined with AI to create intelligent, adaptive wallet systems capable of optimizing transaction management, gas fee selection, and interactions with decentralized applications (dApps) and decentralized finance (DeFi) platforms. AI agents autonomously detect and prevent malicious activities such as phishing attacks, fraud, and unauthorized transactions, ensuring user funds are protected in real-time. The proposed architecture uses modular smart contracts, which facilitate wallet upgradability and adaptability, ensuring long-term compatibility with emerging technologies. This paper also discusses potential challenges, including the security risks associated with AI integration. The findings of this research lay the groundwork for the development of better wallets that could scale the adoption of blockchain technology.
The rise of Central Bank Digital Currencies (CBDCs) or digital forms of central bank money represents a transformative shift in the global financial landscape, aiming to enhance financial inclusion, reduce transaction costs, and improve payment efficiency. While blockchain technology has been proposed as a foundational infrastructure for CBDCs, its suitability remains debatable. This paper provides a Systematization of Knowledge (SoK) on the application of blockchain in CBDCs, analyzing their potential benefits and challenges. We examine key aspects, including scalability, security, privacy, interoperability, environmental sustainability, offline functionality, regulatory considerations, and architecture design. To ground our analysis in practice, we review several real-world CBDC initiatives, including China’s eCNY, the Bahamas’ Sand Dollar, Nigeria’s eNaira, the European Central Bank’s digital euro initiative, Sweden’s eKrona, BIS’s CBDC projects, and Thailand’s CBDC journey. Finally, we highlight research challenges and future directions, including post-quantum cryptography for enhanced security, zero-knowledge proofs for preserving privacy, and AI-driven compliance automation. This study offers a comprehensive knowledge base for policymakers, researchers, and financial institutions to explore the blockchain-based CBDCs.
Blockchain holds promise for reshaping insurance operations by enhancing transparency, automation, and trust. However, existing blockchain-based insurance prototypes often face limitations in transaction speed, cost efficiency, and scalability. This pilot study investigates a decentralised insurance platform implemented on the Algorand network, aiming to address these challenges. We focus on parametric insurance for flight delays, leveraging smart contracts and oracles to manage policy issuance, coverage activation, and claims. We conduct both sequential and stochastic simulations to evaluate performance under controlled and realistic transaction patterns. Our results show that average confirmation times drop from tens or hundreds of milliseconds, as seen in previous systems, to as low as 20 ms in sequential tests and approximately 6.60 ms in stochastic scenarios. Moreover, transaction fees remain minimal, improving cost-effectiveness by approx. $99.53 \%$ for claim operations compared to existing studies. The system sustains an average throughput of 44.44 TPS, with faster policy issuance and claims processing than comparable Ethereum-based solutions. These findings suggest that Algorand’s Pure Proof-of-Stake consensus and our architectural approach significantly enhance operational efficiency, supporting the feasibility of largescale decentralised insurance services. While scaling the experiment, exploring complex policies, and refining DAO governance structures are needed, this work provides a solid foundation for real-world adoption. This research supports blockchain-driven transformation in insurance markets and can serve as a step forward in Insurance 4.0.
Yazid Maafa, Alexandre Chalal, Jiahui Xiang, Osman Salem · 5 authors
Blockchains have revolutionized information systems, evolving continuously in both performance and application sophistication. This paper compares public blockchain performances by examining their technical foundations and practical applications across sectors. Through benchmark analysis of key criteria, we develop hypotheses explaining performance variations. Our goal is to provide insight into this maturing ecosystem whose impact now extends well beyond cryptocurrencies into numerous innovation domains.
This study employs a theoretical, system design–based methodology to propose the Palm GreenChain framework—a blockchain-based platform aimed at enhancing traceability, transparency, financial coverage, and accountability in green bond financing for sustainable palm oil production in Malaysia. The methodology integrates Ethereum-compatible smart contracts, ESG oracles, IPFS-based data storage, and DAO (Decentralized Autonomous Organization) governance to structure a digital green bond lifecycle. Rather than relying on empirical data collection, the framework is conceptualized through the development of a multi-layered blockchain architecture and validated via comparative analysis with analogous blockchain applications in agriculture. The proposed system is designed to enable real-time traceability of green bond disbursements, automate ESG compliance verification using satellite and IoT data, and strengthen accountability and access to climate finance for smallholder farmers. By embedding performance-based returns within smart contracts, the model aligns financial incentives with conservation goals. Leveraging Malaysia’s advanced land administration infrastructure and digital capabilities, the framework presents a scalable, open-source solution to reduce greenwashing, expand financial inclusion in underserved agricultural communities, and enhance transparency and investor confidence in sustainable agricultural finance. By directly linking green finance to verifiable sustainability outcomes, Palm GreenChain addresses key limitations in conventional green bond mechanisms. Its applicability across diverse agricultural sectors positions it as a replicable blueprint for broader sustainable development. The framework is openly available via its GitHub repository.
The rapid expansion of digital assets has created a conflict between technological innovation and environmental, social, and governance (ESG) principles, particularly concerning the energy consumption of legacy consensus mechanisms. This has led to the emergence of "sustainable" cryptocurrencies, raising the critical question of whether the market financially rewards sustainability. This study quantitatively investigates the existence and magnitude of an "ESG premium" in the digital asset market. A quasi-longitudinal study was conducted on a panel dataset of 20 cryptocurrencies (10 sustainable, 10 traditional) from January 1, 2021, to December 31, 2024. A detailed, transparent composite ESG score was developed to measure sustainability. The primary analysis utilized a panel data fixed-effects regression model to assess the relationship between asset prices and ESG scores, controlling for market capitalization, trading volume, market-wide indices, and key technological factors like protocol age, scalability, and developer activity. To address endogeneity and validate causality, we employed models with lagged independent variables. Further robustness checks were performed across bull and bear market sub-periods. A GARCH (1,1) model was used to analyze differences in price volatility. The primary regression model reveals a statistically and economically significant positive relationship between ESG scores and cryptocurrency prices. A 10-point increase in the ESG score is associated with a 4.1% price premium (b=0.0041, p < 0.001), even after controlling for technological modernity. This finding remains robust in models using lagged variables and across different market cycles. GARCH analysis confirms that sustainable cryptocurrencies exhibit significantly lower price volatility. In conclusion, the findings provide strong, robust empirical evidence for a persistent ESG premium in the cryptocurrency market. This suggests that investors price in the perceived long-term viability, reduced risk profile, and ethical alignment of sustainable assets, signaling a maturation of the market where non-financial, sustainability-focused metrics are integral to asset valuation.
Smart contract adalah program yang dapat memastikan bahwa aturan atau perjanjian di jaringan basis data terdistribusi berlaku untuk transaksi yang terjadi. Penelitian ini adalah penelitian hukum yuridis normatif dengan sifat penelitian deskriptif. Teknik pengumpulan data dilakukan melalui studi kepustakaan. Analisis dalam penelitian ini dilakukan secara kualitiatif. Berdasarkan hasil penelitian ditemukan bahwa pengaturan mengenai smart contract di Indonesia belum diatur secara jelas dalam suatu regulasi. Smart contract dapat diterapkan di Indonesia asalkan sesuai dengan hukum dan tidak melanggar norma-norma sosial. Keabsahan hukum atas kehadiran smart contract dikaitkan dengan transaksi elektronik memerlukan kerangka hukum yang jelas dan dukungan dari berbagai pihak, sebab regulasi mengenai smart contract di Indonesia masih belum sepenuhnya terdefinisi. Sehingga kepastian hukum terhadap keabsahan hukum atas kehadiran smart contract belum dapat diwujudnya sepenuhnya, dikarenakan sandungan dalam regulasi yang belum jelas. Implementasi smart contract pada teknologi blockchain dalam kaitannya dengan praktik Notaris sebagai pejabat umum tidak dapat sepenuhnya menghapuskan peran Notaris selaku pejabat umum yang diberikan wewenang oleh ketentuan UUJN.
Oct 10, 2025·Companion Proceedings of the 2025 ACM SIGPLAN International Conference on Systems, Programming, Languages, and Applications: Software for Humanity
This proposal presents a multi-layer dynamic security framework for protecting DeFi smart contracts against evolving attack vectors that traditional static analysis and security audits fail to detect. We observed that many DeFi exploits succeed not due to source code bugs, but because of flawed assumptions about user behaviors and external dependencies that only manifest at runtime. Our system provides three complementary additional defenses to significantly increase the difficulty of launching successful attacks: (1) CrossGuard, a control-flow integrity mechanism that only whitelists legitimate invocation patterns;(2) Trace2Inv, a runtime invariant generator that learns and enforces invariants from historical transaction data; and (3) an ecosystem-wide risk analysis tool that detects compositional vulnerabilities in protocol dependencies. By leveraging upgradeable contracts, the framework can progressively refine defenses as protocols stabilize. Our evaluation results show blocking 85% of past exploits with under 1% false positives and below 20% gas overhead.
Purpose: The purpose of this research is to explore how new technologies, such as DLT (distributed ledger technology), ML (machine learning) and AI (artificial intelligence), can support green economic growth and sustainable finance. Need for the study: Awareness of environmental challenges highlights the importance of using technology to support and promote sustainable financial practices. Therefore, this study, among other things, aims to explore this importance by analysing how AI, ML and DLT can contribute to continuously improving innovation and efficiency in various sustainable finance projects. Methodology: This study uses a literature review technique to examine technology use, sustainable finance, and the transition to a sustainable economy. To achieve this goal, qualitative interviews were conducted with professionals in the fields of sustainability, technology and finance to explore different practices and identify different strategies for developing the future of the finance industry. Findings: Based on the findings of previous studies, AI, ML and DLT play an important role in improving risk management, increasing transparency and simplifying procedures that serve to make decisions in the sustainable finance sector. The transformation to a green and sustainable economy can be more straightforward if it relies on the ability of these important technologies to incorporate some ESG (environmental, social and governance) considerations into organisations’ plans for potential investments. Practical implications: The study's findings will help software developers, financial institutions and policymakers promote and strengthen sustainable development. Furthermore, the use of technology, especially advances in AI, ML and DLT, offers various valuable perspectives for those engaged in the transition to more environmentally friendly financial practices, contributing to creating a more sustainable global economy.
This paper investigates the dual impact of Decentralized Finance (DeFi) and smart contracts on European Union (EU) market stability, with a focus on the role of regulation. The research problem centers on understanding how the rapid growth of DeFi interacts with emerging regulatory frameworks to shape financial stability. The purpose is to provide an integrated analysis that combines quantitative data with qualitative legal insights to inform policy. The methodology employs a fixed-effects panel data model to analyze the effect of DeFi market capitalization, smart contract deployments, and transaction volumes on a market stability index across EU member states, while also incorporating a qualitative review of the EU’s regulatory landscape, including the Markets in Crypto-Assets (MiCA) Regulation [1]. Key findings indicate that while DeFi’s growth correlates with increased market volatility, regulatory interventions like MiCA appear to have a stabilizing effect. The paper concludes that a clear and harmonized regulatory framework is crucial for mitigating the risks associated with DeFi while fostering responsible innovation. The relevance of this study lies in its timely contribution to the ongoing policy debate on DeFi regulation and its implications for financial stability in the EU [2].
Brandon Dulisse, Nathan T. Connealy, Amanda Harrison, Matthew W. Logan
The exponential rise of cryptocurrency has outpaced both understanding and safeguards regarding its utility, rendering crypto markets susceptible to fraud on a massive scale. In this paper, we seek to understand drivers behind female cryptocurrency purchasing behavior, as well as whether gender influences risk of victimization. Based on the analysis of a survey of over 900 cryptocurrency purchasers (33% female), this study explores the relationship between gender and a variety of influences related to cryptocurrency purchasing behavior. Our analysis revealed a significant relationship between gender and cryptocurrency knowledge as well as victimization. These findings have several implications, most crucially that female crypto purchasers may be differentially influenced by subcultural factors that increase risk of victimization compared to their male counterparts.
The banking industry is undergoing a profound transformation driven by digital technologies. Cloud computing, mobile banking, open banking application programming interfaces (APIs), and blockchain are reshaping how financial services are delivered and consumed. While these innovations offer significant benefits, such as improved customer experience, operational efficiency, and new revenue streams, they also introduce complex cybersecurity challenges. In a cloud-first and mobile-first world, banks must navigate a rapidly evolving threat landscape where cybercriminals are increasingly targeting digital platforms, APIs, and emerging technologies like decentralized finance (DeFi).
Марат Рашитович Сафиуллин, Leonid Alekseevich Elshin, Yaroslav Kuznetsov
Objective: This study seeks to substantiate the prospects for using blockchain technologies as a mechanism to attract Islamic finance to the Russian regions, with the dual aim of mitigating sanctions-related restrictions and fostering integration into global Islamic financial ecosystems. Methodology/Approach: The research employs econometric and systems analysis to assess the macroeconomic externalities of blockchain-driven Islamic finance inflows. A methodological toolkit was developed and tested to estimate potential market capacity, using data from four Russian regions (Tatarstan, Bashkortostan, Chechnya, Dagestan) through 2030. The approach incorporates substitution modeling of lost Western capital, scenario analysis, and the application of blockchain-based financial gateways. Originality/Relevance: The originality of this work lies in linking two underexplored areas—Islamic finance and blockchain technologies—in the context of Russia’s geoeconomic reorientation toward Asia and the Global South. The study provides an innovative framework for replacing Western capital flows with investments from Islamic finance markets through decentralized fintech solutions. Main Conclusion: Findings demonstrate that the use of blockchain-based financial mechanisms can significantly expand the capacity of Russian regions to attract Islamic finance. Tatarstan and Bashkortostan show the highest potential, while Chechnya and Dagestan present smaller but strategically relevant capacities. Blockchain solutions are positioned as a breakthrough tool for overcoming international financial isolation and enabling long-term convergence with Islamic digital ecosystems. Theoretical/Methodological Contribution: The study advances the methodological basis for assessing fintech’s role in regional investment attraction by introducing a quantitative model that integrates substitution coefficients, market capitalization ratios, and penetration indices. It enriches the theoretical discourse on blockchain’s economic externalities and provides policymakers and practitioners with actionable instruments for embedding Islamic finance within regional development strategies.
Smart contracts—auto-executing digital agreements built on DLT (Distributed Ledger Technology), an emerging technology of blockchain—are revolutionizing cross-border payments by enhancing efficiency and automation. However, their widespread adoption is hindered by a fragmented regulatory landscape and legal uncertainties across jurisdictions. Therefore, to promote the urgency of regulatory governance of smart contract, this research advocates for the techno-legal standardization of smart contracts to ensure regulatory compliance in international financial transactions. It investigates how smart contracts can be designed to meet diverse legal requirements while maintaining technical adaptability, scalability, and interoperability. Drawing on interdisciplinary literature and qualitative methods—including expert interviews, surveys, and case studies—the study aims to develop a framework that balances innovation with legal certainty. Key challenges addressed include jurisdictional fragmentation, enforcement mechanisms, integration with legacy systems like SWIFT, and compliance with KYC/AML regulations. The research also examines emerging solutions such as decentralized identity frameworks, trusted oracles, and hybrid on-chain/off-chain models. By bridging the gap between law, technology, and finance, this study offers actionable insights for policymakers, financial institutions, blockchain developers, and international businesses. Ultimately, it contributes to the development of a standardized smart contract ecosystem that supports secure, efficient, and legally compliant cross-border payments.
Smart contracts are central to blockchain ecosystems, yet their development remains technically demanding, error-prone, and tied to platform-specific programming languages. This paper introduces SCEditor-Web, a web-based modeling environment that combines model-driven engineering (MDE) with generative artificial intelligence (Gen-AI) to simplify contract design and code generation. Developers specify the structural and behavioral aspects of smart contracts through a domain-specific visual language grounded in a formal metamodel. The resulting contract model is exported as structured JSON and transformed into executable, platform-specific code using large language models (LLMs) guided by a tailored prompt engineering process. A prototype implementation was evaluated on Solidity contracts as a proof of concept, using representative use cases. Experiments with state-of-the-art LLMs assessed the generated contracts for compilability, semantic alignment with the contract model, and overall code quality. Results indicate that the visual-to-code workflow reduces manual effort, mitigates common programming errors, and supports developers with varying levels of expertise. The contributions include an abstract smart contract metamodel, a structured prompt generation pipeline, and a web-based platform that bridges high-level modeling with practical multi-language code synthesis. Together, these elements advance the integration of MDE and LLMs, demonstrating a step toward more accessible and reliable smart contract engineering.