Lau Wen Xuan, Shamsul Kamal Ahmad Khalid, Lokman Mohd Fadzil
Existing donation platforms suffer from limited transparency, centralized governance, and minimal donor participation in fund allocation decisions. Donors often lack visibility into how their contributions are used and have no role in prioritizing charitable projects. These shortcomings undermine trust and reduce engagement. In this paper, a DAObased blockchain donation system is proposed to address these challenges by enabling decentralized, transparent, and automated governance. Built on the Ethereum blockchain using Ganache, MetaMask, and Solidity smart contracts, the system allows verified donors to vote on project prioritization. Smart contracts autonomously execute fund distribution based on vote proportions, removing administrative discretion. The platform consists of eight functional modules, developed using Agile methodology, and implements key DAO features such as token-based eligibility, one-person-one-vote enforcement, and trustless execution. Functional testing validated 24 key system features, while security tests confirmed strong password policies, MetaMask-based identity, and reCAPTCHA protection. User acceptance testing with total 20 donors and 15 administrators resulted in satisfaction scores of 4â5 on a 5-point Likert scale. This research demonstrates how DAO principles can be applied to real-world philanthropic ecosystems, transforming donation systems from passive funding channels into participatory, community-governed platforms.
Ahmed Osama Daoud, Ratan Lal, Ahmed Gouda Mohamed, Mayar Mohamed ¡ 5 authors
The Egyptian construction sector faces persistent challenges, including inefficiencies, delays, cost overruns, and contractual disputes, often due to fragmented workflows, manual documentation, and limited technological integration. This study investigates the potential of blockchain technology and smart contracts to improve transparency, automate contract enforcement, and enhance risk management within the sector. A conceptual framework was developed and tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) based on data from 92 professionals across the construction industry. The findings reveal that key motivators for adoption include the willingness of clients and contractors (β = 0.809), clarity in responsibility and risk allocation (β = 0.772), and user-friendly contract interfaces (β = 0.747). Conversely, significant challenges include legal enforceability concerns (β = 0.855), broader legal ambiguities (β = 0.805), and market hesitation (β = 0.672). The study highlights the mediating role of these challenges and emphasizes the need for regulatory reform, stakeholder engagement, and capacity building. The proposed framework offers practical guidance for policymakers, industry leaders, and technology providers aiming to drive blockchain adoption in Egyptâs construction sector and similar emerging markets.
Purpose This review systematically examines the convergence of Sustainable Digital Finance and Finance 5.0, highlighting their role in advancing financial sustainability, inclusion, and technological innovation. Finance 5.0 represents a transition from profit-driven finance to a human-centric, ethical, and sustainability-aligned financial ecosystem, where Artificial Intelligence (AI), blockchain, Decentralized Finance (DeFi), quantum computing, and RegTech enhance transparency, Environmental, Social, and Governance (ESG) compliance, and financial accessibility. Design/methodology/approach A Systematic Literature Review (SLR) was conducted using the ADO-TCM framework, which organizes research findings into antecedents, decisions, outcomes, theories, contexts, and methodologies. A structured search strategy was conducted across peer-reviewed literature using Scopus and Web of Science databases (2015â2025). Findings The findings indicate the role of Finance 5.0 in advancing sustainable financial ecosystems through AI-driven ESG analytics, blockchain-powered impact investing, and Digital currency-enabled financial inclusion. However, regulatory fragmentation, ethical AI concerns, and financial accessibility disparities remain significant challenges. The findings emphasize the need for standardized ESG metrics, ethical AI governance, and scalable financial policies to bridge sustainability gaps. Additionally, emerging technologies such as quantum computing, DeFi-driven climate finance, and AI ethics in financial decision-making require further exploration to enhance transparency, efficiency, and sustainability in digital financial ecosystems. Originality/value This review presents a novel framework for technological enablers of Sustainable Digital Finance, integrating Finance 5.0 with emerging technologies using the ADO-TCM framework. It addresses gaps in quantum computing, ethical AI, and DeFi-driven climate finance, offering insights for policymakers, financial institutions, and academia in fostering resilient and sustainability-driven financial ecosystems.
The rapid advancement of blockchain technology has precipitated the widespread adoption of Ethereum and smart contracts across a variety of sectors. However, this has also given rise to numerous fraudulent activities, with many speculators embedding Ponzi schemes within smart contracts, resulting in significant financial losses for investors. Currently, there is a lack of effective methods for identifying and analyzing such new types of fraudulent activities. This paper categorizes these scams into four structural types and explores the intrinsic characteristics of Ponzi scheme contract source code from a program analysis perspective. The Mythril tool is employed to conduct static and dynamic analyses of representative cases, thereby revealing their vulnerabilities and operational mechanisms. Furthermore, this paper employs shell scripts and command patterns to conduct batch detection of open-source smart contract code, thereby unveiling the common characteristics of Ponzi scheme smart contracts.
Blockchain technology has become one of the most disruptive innovations of the 21st century, reshaping industries such as finance, supply chain management, healthcare, and governance. However, the conventional blockchain ecosystemâparticularly models based on Proof of Work (PoW)âhas been widely criticized for its excessive energy consumption and ecological footprint. As societies move toward sustainability and carbon-neutral goals, the exploration of energy-efficient blockchain models becomes not just an academic pursuit but also an ethical imperative. This manuscript investigates the evolution of energy-efficient consensus mechanisms and their integration into âgreen smart contracts,â which enable automated, verifiable, and sustainable digital agreements. It highlights consensus algorithms such as Proof of Stake (PoS), Delegated Proof of Stake (DPoS), Proof of Authority (PoA), Proof of Space-Time (PoST), Practical Byzantine Fault Tolerance (PBFT), and emerging hybrid mechanisms. The manuscript offers a comprehensive literature review, outlines statistical insights comparing energy and performance trade-offs, and proposes methodologies for integrating eco-friendly smart contract architectures. The results emphasize that while PoW-based systems consume up to 99% more energy than PoS-based models, hybrid approaches demonstrate a promising balance between security, decentralization, and efficiency. The study concludes that energy-efficient blockchain models, when strategically aligned with sustainability frameworks, can redefine smart contract ecosystems to meet global climate commitments while maintaining reliability, transparency, and scalability.
Khaleel Radhi Hasan Alzlzly, Basim Abdullah Kadhim, Rahim Raad Hameed, Hussein Basim Furaij
"The objective of this study is to analyze the impact of real-time public procurement disclosure through distributed ledger technology (DLT) on reducing the cost of bank financing for public projects in Iraq The importance of this research stems from the growing need to increase financial transparency and reduce information asymmetry between government entities and the banking sector, thereby reducing credit risk and funding a descriptive research." methodology such as An applied field design combining quantitative and qualitative approaches is supported. Data were collected through a structured questionnaire from a sample of 165 senior and middle managers from three major Iraqi banks (Al-Rafidin, Al-Rashid and Trade Bank of Iraq) that finance public projects. Used multiple linear regression and F/T tests to validate the study hypotheses. Had gone The findings show that real-time disclosure via DLT significantly reduces funding costs (ι ⤠0.05) by improving transparency and shortening contract verification cycles. Furthermore the availability of immutable, time-stamped purchasing data increased banks' trust in public agencies The study recommends that Iraq's Ministry of Finance and public procurement authorities improve the security of digital data and government and adopts a pilot DLT-based tender and contract management system with a legal framework to integrate banking platforms
Alex Brockbank, Charlene M. Kalenkoski, Christopher R. Browning, Michael Guillemette
Do financial advisors recommend cryptocurrency investment within a household portfolio? Cryptocurrencies have emerged in popularity as households seek to maximize returns. Financial advisors are expected to provide beneficial advice for a household in managing financial decisions including investments. The existing literature has examined this relatively new form of investing and found some determinants for cryptocurrency investment but has not sufficiently explored the association between this investment option and the investorâs use of a financial advisor. With data from the 2018 wave of the National Financial Capabilities Study (NFCS), this paper examines the relationship between cryptocurrency investment and the use of a financial advisor for American investors. The results suggest that investors who use a financial advisor are more likely to be invested in cryptocurrencies. Additional determinants seen in previous works are also confirmed in the current study; showing that men, younger investors, married investors, and investors with a higher tolerance for risk are more likely to have cryptocurrency investments.
This paper examines the paradoxical (post-)growth trajectory of Bitcoin, the first âcryptocurrencyâ, as a case of infrastructural change in digital finance. Bitcoin's founding phase revolved around the principles of self-governance and self-limitation, which combined to create a commitment to degrowing the financial system and limiting monetary production to impede accumulation. Yet growth logics soon began to unfold after Bitcoin's creation in 2009. How and why did that shift occur, and with what implications? We rely on white papers and outputs of alt-coin founders to trace the socio-technical relations underpinning the emergence and expansion of âalt-infrastructuresâ oriented around growth. We demonstrate how what was originally designed as a post-growth infrastructure largely, albeit not fully, succumbed to conventional growth dynamics over a fairly short period.
This study aims to examine the development of research on the topic of âIslamic Smart Contractsâ and potential research plans based on journals published on this theme. This research uses a qualitative method with a bibliometric analysis approach. The data used is secondary data on the theme âIslamic Smart Contractâ from the Scopus database, with a total of 74 journal articles. The data was then processed and analyzed using the VosViewer application to map the bibliometric development of âIslamic Smart Contractâ research worldwide. The results of the study found 5 clusters with the most frequently used words being smart contract, technology, blockchain, contract, transaction, fintech, blockchain technology, and islamic finance. Then, the research path topics related to Islamic Smart Contracts are Blockchain for Islamic Finance, Fintech in the Islamic Finance Industry, Smart Contracts and Cryptocurrency in Islamic Finance, Smart Contract in Sukuk and Waqf, and Islamic Smart Contracts in Banking.
Abstract The role of central banks in advancing sustainable (âgreenâ) digital finance is becoming increasingly significant, positioning them as both facilitators and key actors. This chapter begins by examining how climate-related financial risks may require adjustments to the operational frameworks of central bank policy tools, and highlights recent initiatives undertaken by central banks in response. It then reviews specific cases of sustainable digital finance in the central banking context, including: (1) the BISâs Project Genesis, which integrates the green bond market and carbon markets through digital technologies; and (2) the collaboration between the Bank of Korea (BOK) and the Korea Exchange (KRX) to explore the application of distributed ledger technology and central bank digital currency (CBDC) in carbon trading.
Abstract Emerging digital financial technology has already had a significant impact on financial development and holds significant potential to advance the sustainable finance agenda. Various challenges limit the assessment of environmental risks, as well as the mobilisation of sustainable finance. Digital technology (including artificial intelligence, distributed ledger technologies, cloud computing, the Internet of Things and big data) can help address the risk identification and mobilisation challenges and can at the same time help promote financial inclusion and energy justice. This chapter highlights the potential of digital solutions and presents six proposals to enhance digital technologies to mobilise capital, assess environmental risks and enhance financial inclusion.
As cryptocurrencies began with the launch of Bitcoin in 2009, a technological and financial revolution has created a fundamental menace to worldwide banking infrastructure by its presence. The article is a thorough exposition of the increasing use of cryptocurrencies and its compounding implications to the conventional banking systems. We mention the principles of decentralized finance (DeFi) which explicitly challenge the role between banks, payments, and settlements, lending, and borrowing, and even, the custody of assets. This paper adopts a conceptual and comparative analysis research design to consolidate a number of general layers of scholarly articles, industrial reports and regulation books to develop an overall structure against which to understand this dynamic relationship in a holistic manner. It is analyzed by means of the two-sided impact that semi-protects the traditional bank axiom on one hand, the cryptocurrencies and the DeFi systems are actively disintermediating the traditional banking operations which made delivery of cross-border remittances, P2P lending protocols, and self-custody opportunities faster, cheaper, and more convenient. This is putting competitive pressure on the existing institutions threatening the existence of fee based revenue systems and customer relations. One other, but equally, is that the boarding cryptocurrencies over technological resolutions, namely blockchain and distributed ledger technology (DLT), is borrowed even by the banking sector itself. Banks are learning about DLT to automatize their back-office business, create new digital assets, and the crypto threat establishes their stance through two forms Central Bank Digital Currency (CBDCs) and regulated stablecoins. The implication of this change is evaluated critically depending on the discussion of the potential increase of financial inclusion and financial efficiency in addition to the high level of security risks and the great uncertainty of regulation and the threat of volatility, systemic financial stability. The conclusion of this paper is that crash belongs more to cryptocurrency than to its replacement, and the old banking structures will have to make use of it to be creative, and develop a new value proposal in a more and more decentralized financial system. The future has been defined as requiring a hybrid solution of centralization and decentralization of systems in which they would co exist, compete, and converge.
Blockchain technology has emerged as a transformative force across various industries by providing a decentralized, transparent, and secure digital infrastructure. Central to this transformation are smart contracts, which are self-executing agreements that autonomously enforce and execute contractual terms without the need for intermediaries. While smart contracts offer significant advantages in terms of efficiency and security, their inherent rigidity and limited adaptability pose challenges in dynamic and complex environments. This situation prompts the critical question: How Far Should We Go from Smart Contracts to Smarter Contractors? Driven by the necessity to overcome these limitations, this systematic review investigates the evolution of smart contracts into smarter contractors through the integration of artificial intelligence (AI) and machine learning (ML) technologies. Adhering to the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines, an extensive literature search was performed across multiple academic databases, identifying and analyzing 276 relevant studies published between 2015 and 2024. The analysis, structured around six key research questions, reveals that the incorporation of AI and ML has significantly enhanced the functionality, security, and adaptability of smart contracts throughout their lifecycle. These enhancements include automated code generation, formal verification, real-time monitoring, and adaptive management. Despite these advancements, persistent challenges such as scalability, interoperability, data privacy, and computational overhead continue to hinder the full realization of smarter contractors. Additionally, the advent of Large Language Models (LLMs) has further expanded the capabilities of smart contracts, enabling more sophisticated code generation, vulnerability detection, and intelligent auditing. This review underscores the pivotal role of AI and ML in addressing the limitations of traditional smart contracts, highlighting their transformative impact on the broader blockchain ecosystem and facilitating the development of more advanced and intelligent decentralized applications. Finally, we propose future research directions that emphasize the necessity for standardized frameworks, enhanced interoperability protocols, and robust security measures to support the ongoing advancement of intelligent smart contracts.
Luigi Coppolino, Giovanni Maria Cristiano, Salvatore DâAntonio, Jonah Giglio ¡ 6 authors
Ensuring the reliability and accuracy of information is a critical challenge in sectors like finance, media, and health. The reliance on centralized verification systems introduces risks of bias, manipulation, and limited transparency. To address these issues, we propose VeriNet , a decentralized framework for third-party content verification leveraging blockchain technology and the Ethereum Attestation Service. VeriNet integrates on-chain and off-chain attestations to ensure privacy, transparency, and accountability, supported by a Decentralized Data Warehouse and cryptographic Proof-of-SQL mechanisms. The framework includes Contributors , who submit content, and Verifiers , who assess its authenticity. We carried out two Proof-of-Concept implementations, namely in deepfake detection and fintech credit scoring, to demonstrate the efficiency of VeriNet and its adaptability to diverse domains. Moreover, we conducted an experimental evaluation focusing on various parameters, such as costs and execution time, to demonstrate framework feasibility, scalability, and potential to establish a trusted ecosystem for collaborative verification.
Abstract Increased and sustained access to the formal financial system enables communities to better meet their basic needs, prepare for and respond to unexpected shocks, and achieve broader economic growth. Yet many emerging economies like those across Latin America continue to face barriers that prevent individuals, households, and businesses from accessing the formal financial system. Financial inclusion efforts that leverage technological innovation are well suited to address some of them. Specifically, fintech products built on blockchains offer new ways to access financial services by creating pathways that do not rely on traditional infrastructure. Blockchain-based services offer easier financial access, innovative credit opportunities, and capital formation in a decentralized financial environment. While blockchain and DeFi are still in their early stages, these services have the potential to close some persistent gaps that stand in the way of more inclusive Latin American economies.
1. Introduction and ObjectiveInformation asymmetry has long been recognized as a critical challenge within financial markets, where unequal access to information between contracting parties can lead to inefficient outcomes. In the context of Islamic finance, this issue manifests most prominently through adverse selection and moral hazard, both of which are substantially intensified in profit-and-loss sharing arrangements. Participatory contracts such as MushÄrakah and Muá¸Ärabah rely on mutual trust, transparency, and aligned incentives. However, empirical evidence from Islamic banking practiceâparticularly in Iranâshows that actual utilization of these contracts remains limited. Banks frequently avoid participatory financing and shift toward fixed-return modes (such as MurÄbaḼah), mainly due to the heightened risk of borrower default arising from information asymmetry, insufficient visibility into business operations, and difficulties in monitoring managerial behavior. Within this environment, adverse selection emerges before contract formation when the bank cannot accurately distinguish between high-quality and low-quality project proposals or entrepreneurs. This may result in the unintended approval of risky proposals, thereby elevating the likelihood of non-performing financing. The problem is further accentuated by limitations in credit assessment processes, inadequate transparency in project data, and disparity in profit expectations and execution approaches between banks and entrepreneurs. Recent advances in decentralized technologiesâparticularly Web3 architectures incorporating blockchain, decentralized identity frameworks, distributed ledgers, and programmable smart contractsâprovide new opportunities to address these long-standing informational and contractual challenges. Web3 offers a structural shift from centralized information control to transparent and verifiable records shared within a network of stakeholders. Such transparency can diminish information asymmetry, reduce opportunities for misrepresentation, automate contract enforcement, and improve the reliability of credit histories. The primary objective of this research is to assess the feasibility of reducing default risk caused by adverse selection in Islamic participatory contracts through the application of Web3 technology. The study aims to: (1) Identify the core factors that generate adverse selection in participatory financing, (2) Evaluate the strength and direction of their influence on default risk, and (3) Analyze how Web3 mechanisms can mitigate these factors and enhance the practical viability of participatory contracts in Islamic banking systems.2. Methods and MaterialsThis research adopts a mixed-methods exploratoryâconfirmatory design. Owing to the complexity and conceptual novelty of integrating Web3 systems with Islamic financial contracts, the study began with a qualitative phase followed by quantitative model testing. Qualitative Phase: Delphi MethodThe qualitative stage employed a three-round Delphi process to identify and validate the principal determinants of adverse selection in participatory financing. The expert panel comprised university scholars in Islamic economics, senior managers of credit and risk departments in Iranian banks, and professional consultants in Islamic financial technology. The first round used open-ended questionnaires to collect diverse expert insights, resulting in an initial list of thirteen candidate factors. In the second round, a structured Likert-scale survey assessed the significance of the proposed factors. Consensus criteria were set at mean ⼠3.5 and standard deviation ⤠1, consistent with established Delphi methodology. In the final round, experts confirmed the final factor set, which consolidated into three primary constructs: (1) Lack of transparency in customer information, (2) Insufficient evaluation of the entrepreneurâs technical competence, and (3) Misalignment of objectives between financing partners. These validated constructs provided the basis for the structural model.Quantitative Phase: PLS-SEM AnalysisIn the second phase, a structured questionnaire was administered to 289 participants representing the same expert categories. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS software. PLS-SEM was chosen due to:- The predictive and exploratory nature of the research,- The inclusion of higher-order and formative construct, and- Potential non-normality in expert response distributions. Model evaluation followed established metrics, including reliability (Cronbachâs alpha and composite reliability), convergent validity (AVE), discriminant validity, and structural path significance (t-statistics and p-values). Multi-collinearity was assessed using VIF values, all of which were below the acceptable threshold. Confidence levels were set at 95% with corresponding significance thresholds of p < 0.05.3. Research FindingsThe results of the structural model confirm that adverse selection exerts a direct and significant positive effect on default risk in participatory contracts (β = 0.299, p < 0.01). The components of adverse selection are strongly driven by:- Lack of transparency in customer information (β = 0.932, p < 0.001),- Misalignment of objectives between partners (β = 0.887, p < 0.001), and- Insufficient assessment of entrepreneurial competence (β = 0.885, p < 0.001). This highlights that default risk in participatory financing is not merely a result of financial capacity constraints, but is deeply rooted in information imbalances and strategic behavior at the contract initiation stage. The model further demonstrates that Web3 technologies have a significant mitigating influence. The path coefficient for Web3âs direct effect on reducing default risk is negative and statistically meaningful (β = â0.214, p < 0.01). Additionally, Web3 reduces the negative effects of adverse selection and information asymmetry, as shown by reversed and weakened path effects in the Web3-enhanced environment. Key Web3 mechanisms enabling this outcome include:- Real-time transparency and immutable information records,- Smart contracts that automate profit-sharing and enforce commitments,- Decentralized digital identity (DID) systems that support reliable, tamper-proof credit histories,- Tokenization of collateral and tangible/ intangible assets, enabling verifiable and liquid security guarantees,- Reduced monitoring and enforcement costs due to auditability of on-chain transactions. 4. Discussion and ConclusionThe findings of this research indicate that the primary barrier to effective participatory financing in Islamic banking is not merely structural or regulatory, but fundamentally informational. Adverse selection emerges where transparency, competence assessment, and goal alignment are weak. Conventional mechanismsâsuch as collateralization and post-contract supervisory auditsâprovide only partial and reactive mitigation. In contrast, Web3 offers a proactive and systemic solution by embedding transparency, verifiability, and automated compliance directly into the contract infrastructure. By shifting the reliance from personal trust to systemic trust, Web3 supports the original normative philosophy of Islamic finance: equitable profit-and-loss sharing, partnership-based financing, and ethical allocation of capital. From a policy perspective, adopting Web3 frameworks may substantially increase the feasibility and attractiveness of participatory financing modes for Islamic banks that currently avoid them due to high default exposure. This study contributes to the academic discourse on risk management in Islamic finance by demonstrating a structural linkage between information theory, contract design, and emerging decentralized technological capabilities. Practically, the research proposes a hybrid risk-management strategy, integrating traditional credit evaluation frameworks with Web3-based transparency, identity assurance, and automated enforcement. Future work should examine regulatory, Shariah governance, cybersecurity considerations, and interoperability standards needed to implement Web3-based participatory financing systems at scale. Nonetheless, the present results indicate that intelligent and compliant adoption of Web3 can significantly reduce default risk and enable the revival of participatory financing models in Islamic banking.
Ruben M Nayve Jr, Ferdinand Timbang, Mark Anthony Pelegrin
This study investigates the role of network effects in shaping economic value creation within cryptocurrency ecosystems. While cryptocurrencies have evolved from speculative assets into complex digital platforms that facilitate transactions, decentralized finance, and governance, their economic sustainability is fundamentally driven by the dynamics of user adoption and interconnectivity. Drawing upon theories of network externalities and digital platform economics, this research employs a mixed-methods approach that integrates quantitative econometric modeling with qualitative analysis of policy and industry practices. Quantitative data, including market capitalization, transaction volume, wallet addresses, and hash rate, are analyzed to measure the correlation between network growth and value creation. Complementary qualitative insights are derived from literature reviews and expert interviews to contextualize the findings within broader regulatory and technological frameworks. The results reveal that network size and user activity exert significant positive effects on value creation, with evidence of nonlinear threshold dynamics: once a critical mass of adoption is reached, economic value accelerates disproportionately. Comparative analysis across major ecosystems such as Bitcoin and Ethereum highlights differences in how network effects interact with technological innovation and governance structures. The findings contribute to advancing theoretical understanding of digital network economies and provide practical insights for stakeholders, including developers, investors, and policymakers. By identifying both opportunities and risks, particularly regarding volatility and regulatory challenges, this study offers a comprehensive framework for evaluating the long-term sustainability of cryptocurrency ecosystems.
Teodora Maria Suciu, Nicoleta Verejan, Adela Socol
The accelerated development of digital technologies and cryptocurrencies in latest years has been accompanied by an exponential raise in related scientific literature. This study conducts a bibliometric analysis based on the VOSviewer software for documents indexed in the Web of Science Core Collection from 2015-2024, focusing on the evolution of research topics in the field of cryptocurrencies. The analysis employs co-occurrence mapping of the main research topics related to cryptocurrencies. The results highlight a high degree of thematic diversification, organized into five major clusters with the following directions: cryptocurrency markets and financial performance, digital assets and technological foundations, blockchain infrastructure and governance, emerging applications and risks, general cryptocurrency concepts and operational aspects. This research contributes to the knowledge by offering a comprehensive and structured overview of cryptocurrency-related literature streams, providing valuable insights for scholars, policymakers and industry stakeholders seeking to understand the trajectory and future potential of cryptocurrency-related research.
Introduction: The rapid development of financial technology (fintech) and blockchain has brought a major transformation in the global industry, including in the Islamic finance sector. However, integrating fintech and blockchain with Sharia principles remains a challenge and has not been studied systematically. This research aims to map and analyze the development of research related to Fintech, Blockchain, and Islamic finance, identifying trends, research gaps, and future development directions. Methods: This study employed a qualitative research method with a Systematic Literature Review approach, utilizing a model prism. The data source for this study consisted of published articles obtained from Scopus and Emerald. The study's results showed that 30 articles, published in Scopus and Emerald, were published between 2015 and 2024. Results: Based on the findings obtained, it is evident that blockchain technology, fintech, and digital innovation have significant potential in enhancing the efficiency, transparency, and inclusivity of Islamic finance, particularly through applications in zakat, waqf, sukuk, and crowdfunding. Despite regulatory and collaboration challenges, these technologies have been able to eradicate poverty, support economic development, and expand access to finance, including in non-Muslim countries. Technology adoption is also influenced by religiosity factors and perception of benefits, confirming the need for global regulatory and standard support to maximize its benefits. Conclusion and Suggestion: The reviewed studies suggest that blockchain technology has significant potential to strengthen trust and compliance with Shariah by enabling smart contracts, decentralized financial products, and transparent auditing mechanisms. Moreover, fintech solutions can expand financial inclusion in Muslim-majority countries and beyond, especially for the unbanked population. However, challenges remain in terms of regulatory frameworks, Shariah standardization, scalability of blockchain applications, and the readiness of financial institutions and customers to adopt these innovations. In conclusion, while fintech and blockchain present strong prospects for advancing Islamic finance, further research and practical implementation are required to fully realize their potential in providing Shariah-compliant, inclusive, and sustainable financial services.
Mr. Aditya S. G., Mr. Ram Anil Ainkar, Prof. Ms. Pranalini Joshi
The current Know Your Customer (KYC) ecosystem is largely built on centralized systems, which are vulnerable to data breaches, incur high operational costs, and often require customers to repeat verification steps unnecessarily [1], [2]. Such centralized designs concentrate sensitive data in single repositories, creating âhoneypotsâ that conflict with modern data privacy standards like the General Data Protection Regulation (GDPR) [3], [4]. At the same time, the transparent nature of public Distributed Ledger Technology(DLT) presents challenges for maintaining privacy in financial transactions, giving rise to what is often called the âBlockchain-PrivacyParadoxâ [5]. This survey explores cutting-edge DLT-based solutions that integrate Self-Sovereign Identity (SSI) and Zero-KnowledgeProof (ZKP) techniques. Key challenges in current approaches include scalability limitations in certain permissioned blockchains [6],inadequate mechanisms to fully support GDPRâs Right to Erasure [3], [4], [7], and the absence of reliable protocols to ensure legal access for Anti-Money Laundering (AML) compliance when users are uncooperative [8], [9].
NFTs are intrinsically dependent on blockchain technologies. Their main function is to represent underlying tangible or intangible assets and their value. NFTs have also been designed and developed to create new tradable items and to generate a new market. Trading NFTs is therefore one of the major objectives within this new market, mainly in marketplaces connected to the relevant blockchains. On blockchains, the usual tools to perform transactions are the so-called smart contracts. NFTs are programmed using smart contracts, and transactions on NFTs are generally performed through smart contracts. This electronic process confirms the authenticity of the NFT, timestamps the transaction, and keeps track of the NFTâs successive owners. NFTsâ eco-environment is therefore the world of digital technologies, first and foremost blockchain technologies (including their cryptocurrencies) and smart contracts. This chapter will provide a legal analysis of blockchain technologies, smart contracts and NFTs and how these different technologies relate to each other from a technical and a legal perspective. It will show how the growing importance of virtual environments and marketplaces makes it crucial to address the legal issues raised by transactions on NFTs. Indeed, while there can be many interesting economic opportunities and legal innovations around NFTs, there is still confusion about how the law should frame this new business. There are also certainly risks lying ahead.