Blockchain consensus protocols must be thoroughly evaluated for security and resilience, but their large scale makes experimental testing in a lab setting challenging. While numerous simulators exist, there is a need for a more general framework that can translate simulation data into useful and comparable metrics. This thesis addresses this gap by adopting CNSim, a simulator developed at York University that introduces a finality-based approach to evaluating consensus networks. To study the Bitcoin protocol, CNSim was enhanced by designing and implementing a novel framework for modeling adversarial behaviors. Specifically, the Majority Attack was implemented to create a detailed simulation for double-spending scenarios. Using this extended simulator, a systematic evaluation was conducted to assess the attack's impact on transaction finality, quantifying how network resilience degrades as malicious hash power increases. The findings provide valuable insights into the practical security limitations of the Bitcoin protocol and successfully demonstrate the utility of a finality-based methodology for analyzing blockchain consensus mechanisms.
ABSTRACT This study investigates an audit data privacy protection mechanism based on blockchain technology and constructs a secure and efficient computational model. The system is designed to support practical domains such as medical record systems and financial audit platforms, ensuring data integrity, traceability, and confidentiality. Leveraging a distributed ledger and optimized consensus mechanism, the model automates data sharing and audit processes through smart contracts. A hybrid encryption approach is proposed, integrating RSA algorithm with chaos theory to enhance encryption complexity and randomness. Experimental resultsâconducted on realâworld medical audit dataâdemonstrate that, compared to baseline methods, the proposed scheme improves privacy protection by up to 50%, increases ciphertext complexity by 45%, and reduces encryption and verification time by approximately 20 s. The system also supports up to 500 concurrent users with a throughput of 583.49 requests/s, indicating strong scalability and efficiency.
Advanced Steganography and Watermarking Techniques
In Qing Dynasty China, the inter-government fiscal arrangement was characterized by a âdual-track fiscal systemâ in which a formal system with a central budget of revenues and spending coexisted with a decentralized and fragmented informal local fiscal system financed by miscellaneous extra-legal taxes. Why did the dual-track fiscal system endure despite its obvious flaws? Why was the Qing state unable to establish a stable and rationalized fiscal federalism? This chapter investigates the causes and consequences of the dual-track fiscal system. Through historical institutional analysis and several empirical studies, we propose a novel explanation based on the opportunistic behavior and credible commitment by the central government. Due to the central governmentâs inability to credibly commit to not encroaching on the formal fiscal powers of lower-level governments, the decentralized, off-budget, and informal local finances represent an âinstitutional equilibriumâ.
Bug reproduction is becoming an important task in the security analysis of Solidity smart contracts. By simulating attacks, developers and auditors can better understand how a vulnerability is triggered in practice. To reproduce a bug, one often needs to define an attacker contract and a specific sequence of interactions that exploit the vulnerability. However, in smart contracts, there are rarely automated tools that can generate such contracts and sequences and validate their correctness. Existing security tools, such as formal verifiers, are effective at detecting bugs, but they are not designed for bug reproduction. They often omit execution traces or produce incomplete ones. Moreover, their reports rarely reflect the behaviour patterns of attacker contracts. This gap motivates our work. We propose VeriExploit, a framework that combines formal methods and large language models to automatically generate, validate, and refine reproduction contracts and execution steps. Given a vulnerable contract and its counterexample, VeriExploit produces a contract that re-triggers the same bug and outputs a concrete trace showing how the exploit works. Experiments show that VeriExploit is effective at automating bug reproduction, achieving a success rate of 85.60% on our benchmark dataset.
In recent years, many hash functions have been introduced to satisfy the pressing need of some zero-knowledge protocols for such primitives allowing a low degree verification of their round function when arithmetized over a large field.While this can be achieved by restricting their sub-components to low-degree functions (and their inverse), the newest primitives in this category also leverage the intricacies of some proof systems to use âSplit-and-Lookupâ non-linear functions that essentially apply a small S-box in parallel over the binary representation of a field element.Such components excel at hindering attacks relying on polynomial system solving, but they offer poor security against statistical attacks. On the other hand, low degree monomials offer the opposite guarantees, being strong against statistical attacks. Several primitives have recently been proposed that combine such components in different ways in order to get the best from both.In this paper, we target such primitives by relying on the low degree components to allow a low-cost polynomial solving step. The weakness of Split-and-Lookups against linear attacks is used to simplify these systems, and their weakness against differential attacks is then used to propagate across many rounds the differential patterns obtained during polynomial solving. We instantiate this general approach by attacking round-reduced Monolith, and providing a distinguisher on full-round Skyscraper. These result then shed some light on how to best combine the different types of components to achieve the highest security.
Nayantara Thomas, Liya Treesa Philip, Pampana Jahnavi, R. Sujatha · 5 authors
The increasing complexity and globalization of the semiconductor supply chain, particularly in Field-Programmable Gate Arrays (FPGAs), has introduced significant vulnerabilities including counterfeiting, unauthorized modifications, and malicious hardware insertions. To address these challenges, this project proposes a novel security framework that integrates Zero Trust Architecture (ZTA), blockchain technology, and Arbiter Physical Unclonable Functions (PUFs) to enhance the authenticity, traceability, and resilience of the FPGA supply chain. The framework employs PUFs to generate unique hardware identities for FPGA components, which are authenticated through smart contracts and immutably recorded on a permissioned blockchain. By adopting ZTA principles, the system ensures continuous verification of all entities and components across the supply chain. The proposed architecture supports real-time monitoring, automated anomaly detection, and role-based access control, creating a tamper-proof and transparent ledger of FPGA transactions. This approach significantly strengthens supply chain integrity, mitigates risks of counterfeit insertion, and establishes a secure foundation for deploying FPGAs in mission-critical applications such as defense, telecommunications, and AI systems.
Physical Unclonable Functions (PUFs) and Hardware Security
Money laundering is regarded as an offense in nearly all nations and has evolved into a significant global concern. Despite the implementation of global anti-money laundering initiatives, its prevalence continues to rise. The need to control this phenomenon is paramount due to the substantial risks it poses to the financial system, economies, and society at large. Consequently, accountants play a pivotal role in the fight against money laundering by virtue of their proficiency in financial transactions, reporting, and auditing. This article discusses the involvement of accountants in combating money laundering, shedding light on the obstacles they encounter. These challenges encompass the lack of harmonization among multiple jurisdictions in their regulatory frameworks, the dilemma of breaching client confidentiality by divulging dubious business activities to law enforcement, the integration of digital payment systems with decentralized finance platforms, and the limited access to adequate resources and training programs. The advent of cryptography and digital technologies further complicates the detection of money laundering activities. Moreover, the article explores the measures undertaken by accountants to counter money laundering. These measures encompass a range of tasks aimed at prevention, including the establishment of compliance systems, detection, and reporting functions. The implementation of forensic accounting techniques and the enforcement of Anti-Money Laundering (AML) regulations form integral components of the prevention strategy. By adhering to regulatory standards, monitoring transactions, and collaborating with relevant authorities, accountants can safeguard businesses and the broader financial system from the detrimental impacts of money laundering. Their contribution extends beyond mere compliance, encompassing the fostering of a culture characterized by transparency, integrity, and ethical behavior within the realm of finance.
Investors may tend to turn to safe-haven assets to avoid high volatility in financial markets and protect themselves from risks during times of uncertainty created by crisis periods. In the study, haven, hedge and diversification characteristics of traditional and digital assets such as gold, silver, US dollar, euro, US 10-year bond, Brent oil, Bitcoin and Ethereum against BIST100, S&P500 and DAX indices were examined using EGARCH (1,1) and DCC-GARCH (1,1) models in seven different crisis periods that have a high impact on global markets, including geopolitical, financial and health crises, using 20-year daily data covering the period 01.01.2005â01.01.2025. The findings indicate that the US dollar has consistently demonstrated strong safe-haven characteristics against the BIST100, S&P 500, and DAX in various crises. The assets that exhibited significant haven characteristics only in one crisis period were gold against the S&P 500, Brent oil, and the Euro against the DAX. The 10-year US bond exhibited safe-haven properties relative to the S&P 500 and DAX during various crisis periods. While no significant results were achieved regarding silverâs haven or hedge characteristics, it was observed that the assets generally played a diversifying role in periods other than those yielding these results. According to EGARCH (1,1) results, Ethereum was identified as a haven candidate against DAX; however, DCC-GARCH (1,1) estimates did not confirm this result.
Purpose. The aim of the study is to develop a detailed role model for the implementation of smart contracts in the logistics processes of freight transportation, which will enable the automation of interaction between participants and increase the transparency of operations. Methodology. To achieve the stated goal, a systemic approach using context-role analysis was applied. The study involves a detailed decomposition of the stages of the logistics chain when applying smart contracts, identification of key participants, and definition of their functions, rights, and responsibilities. This approach makes it possible to clearly delineate areas of responsibility, reduce the risk of conflicts, and ensure the transparency of each participantâs actions. The developed UML diagram demonstrates the sequence of interactions between subjects, and the integration of smart contracts ensures the automation and immutability of operations. Findings. A comprehensive analysis of logistics processes using smart contracts was carried out, which made it possible to define the rights and responsibilities for seven basic roles of logistics operation participants. This approach provides a holistic view of the system and makes it possible to describe the logic of interactions between subjects. The developed model demonstrates the automation of contract conclusion and execution, which contributes to the reduction of document processing time, optimization of operations, and ensuring a high level of data security in the distributed ledger. Originality. An approach is proposed that enables the integration of formalized roles of freight transportation participants with smart contract technology. The detailed structuring of the functional responsibilities of each role makes it possible to implement the program logic of a decentralized system, which significantly expands the possibilities of automated logistics process management. The approach is universal and can be adapted to different types of logistics scenarios. Practical value. The developed role model creates favorable conditions for the implementation of blockchain solutions in the field of freight transportation, which makes it possible to digitalize logistics processes, increase trust between supply chain participants, and reduce operational costs. The obtained results have practical application for logistics operators, software developers, and consulting companies that seek to modernize existing transportation management systems. The model can also be useful for educational purposes in the fields of logistics, computer science, and management.
Ruba Islayem, Haya R. Hasan, Ahmad Musamih, Khaled Salah · 5 authors
The leather supply chain comprises numerous organizations and stakeholders, particularly when sustainability aspects are taken into account, making it a complex system. The complexity inherent in such systems can lead to inaccurate information, lack of transparency, and limited data provenance. Moreover, there has been a surge in the call for sustainable practices within leather production, propelled by growing environmental consciousness and ethical considerations. In this paper, we address these challenges by proposing a blockchain-based solution designed to ensure trusted and secure traceability and sustainability throughout the entire life cycle of leather products. By harnessing the inherent capabilities of Ethereum smart contracts and blockchain technology, such as decentralization, immutability, data integrity, and transparency, we guarantee the secure and reliable tracing of materials from the farm to the final consumer. Moreover, we provide proof of sustainability by which certification agencies monitor, audit, and approve the sustainable processes and practices carried out by the different stakeholders at all stages of production to ensure compliance with industry standards and regulations. The paper presents the blockchain-based system architecture, implementation, and validation of algorithms and smart contracts. It also evaluates the security measures and cost-effectiveness of the system to offer valuable insights into its robustness and efficiency. We have made the developed smart contracts code publicly available on GitHub.
Nopita Sari, Nurul Ain Safrizon, Basarudin Basarudin, Adam Idris
The increasing adoption of blockchain technology in Islamic finance has prompted growing interest in its application for smart contracts within murabahah financing structures. The digital transformation of financial transactions raises important questions regarding Sharia compliance, contractual validity, and legal enforceability in decentralized systems. This study aims to examine how blockchain-based smart contracts can enhance transparency, efficiency, and trust in murabahah financing while maintaining strict adherence to Islamic legal principles. A qualitative-doctrinal research method was employed, integrating analysis of classical fiqh al-muâ?mal?t with contemporary regulatory frameworks governing digital transactions and smart contract implementation. The study utilized comparative analysis of existing blockchain platforms and Islamic financial models to identify areas of alignment and potential conflict. The findings indicate that blockchain technology supports murabahah transactions by automating contract execution, eliminating asymmetrical information, and ensuring compliance with Sharia requirements for ownership transfer and cost disclosure. However, challenges remain in achieving legal recognition of decentralized contracts within conventional judicial systems. The study concludes that blockchain-based smart contracts can be considered Sharia-compliant when developed under proper legal supervision and governance mechanisms, offering a promising pathway for digital transformation in Islamic finance.
The exponential growth of the electric vehicle (EV) industry, driven by decarbonization goals and energy transition policies, has intensified the need for sustainable and transparent supply chains. Lithium-ion batteries (LIBs), the cornerstone of EVs, pose complex life cycle challenges related to ethical sourcing, environmental degradation, traceability gaps, and inefficient end-of-life (EOL) management. Addressing these multifaceted issues requires an integrated technological approach. This study proposes a unified framework leveraging Digital Product Passports (DPPs) and blockchain technology to enable real-time, tamper-proof tracking of battery materials, components, and performance metrics throughout their lifecycle.The paper further integrates machine learning, with a focus on reinforcement learning (RL), to optimize logistics and predictive maintenance based on dynamic supply chain data. To ensure privacy and regulatory compliance in data sharing, the framework incorporates zkSNARKsâa zero-knowledge proof system that preserves confidentiality while maintaining verifiability across distributed networks. This triadic approach promotes lifecycle transparency, supports circular economy goals through efficient material reuse and recycling, and reduces the total cost of ownership (TCO) for EV stakeholders.The proposed solution addresses critical industry challengesâsuch as counterfeit components, low recycling efficiency, and supply chain opacityâwhile offering scalable applications in adjacent sectors like consumer electronics and renewable energy. The integration of DPPs, blockchain, and AI-based optimization establishes a resilient, interoperable infrastructure that enables enhanced sourcing, sustainability, and collaborative innovation in the evolving EV ecosystem.
In response to the escalating plastic pollution crisis, the development of high-performance biodegradable materials is critical. Poly(butylene succinate) (PBS) is an important biodegradable polymer as it possesses excellent biodegradability and processability. But it suffers from limitations such as low mechanical strength, poor thermal stability, and high production costs. In this study, taxus residue (TF), a waste by-product, was utilized as a reinforcing filler to reduce PBS costs while enhancing its overall performance. To address the interfacial incompatibility between TF and PBS, branched PBS (T-PBS) was introduced as a compatibilizer. The TF was surface-modified via alkali treatment and silane coupling (KH550), and a series of PBS/TF/T-PBS composites with varying T-PBS viscosity grades were prepared by melt blending. The compatibilization mechanism of T-PBS and its influence on the composite structure, crystallization behavior, thermal stability, rheological, and mechanical properties were systematically investigated. Results show that the branched structure significantly enhanced T-PBS melt strength and reactivity. The introduction of T-PBS effectively improved interfacial compatibility between TF and PBS matrix, reducing phase separation and interfacial defects. Compared to uncompatibilized PBS/TF composites, those with appropriately viscous T-PBS exhibited improved tensile strength (increased by 19.7%) and elongation at break (increased by 78.8%), while flexural strength was also maintained at an enhanced level. The branched points acted as nucleating agents, increasing the onset temperature and degree of crystallinity. In the high-temperature region, the synergistic barrier effect from TF and char residue improved thermal stability (T85% reached 408.19 °C). Rheological analysis revealed enhanced viscosity and elasticity of the system. This study provides a promising strategy and theoretical foundation for the high-value utilization of taxus waste and the development of high-performance biodegradable PBS-based composites.
Abstract Cryptocurrency speculation involves investing in assets with highly volatile price movements in which large sums can be gained or lost in short periods. Although fear of missing out (FOMO) has been positively linked to this type of activity, less is known about the role of regret, such as how people react to actions taken (acts of commission) or not taken (acts of omission). Anticipated regret was investigated in a study involving 403 investors ( M = 325, F = 73, Other = 5) recruited from an online panel and presented with meme coin scenarios that manipulated omission (not buying) or commission (sold early) while also examining the roles of social comparison and temporal framing. Scenarios were arranged in a 2 Ă 2 Ă 2 factorial design with FOMO, risk tolerance, impulsivity, financial literacy and problem gambling included as covariates to control for potential individual differences. Acts of commission were associated with greater regret and negative emotion but not with FOMO-based investment decisions. No effects were found for temporal distance or social comparison. At-risk and problem-gambling investors were also found to be more vulnerable to negative emotions and risky intention decision-making than non-risk gamblers. FOMO and risk tolerance were related to making decisions based on FOMO, whereas cryptocurrency literacy appeared to mitigate this tendency. These findings underscore the potential value of consumer education in raising awareness of psychological biases that are likely to lead to riskier speculative decisions.
Decentralized exchanges (DEXs) form a cornerstone of the decentralized finance (DeFi) ecosystem, processing token trades worth billions of dollars daily. Yet, a significant fraction of these trades are suboptimal: alternative routing paths could yield more target tokens. Addressing this inefficiency is both practically urgent and theoretically compelling. Building on the linear line-graph-based routing method of Zhang et al. (2025), we propose three key extensions that better capture real-world trading complexity. First, we introduce a breadth-first search (BFS) link iteration rule that reduces computational cost and average execution time without sacrificing profitability. Second, we design a route-splitting strategy that divides large trades into smaller ones, alleviating price slippage and increasing average trader profits, albeit at the cost of higher computational overhead. Third, we generalize the method beyond a single DEX to a multi-DEX aggregator setting, reflecting actual trading environments. Using empirical data from Uniswap V2 and Sushiswap V2, we demonstrate that these extensions substantially improve both computational efficiency and profitability, establishing a foundation for future routing enhancements.
The COVID-19 pandemic has accelerated the adoption of digital health solutions such as telemedicine, Internet of Medical Things (IoMT), and AI-based diagnostics, enabling remote monitoring and contactless consultations. While IoMT devicesâincluding wearable sensors and implantablesâhave enhanced continuous healthcare delivery, they have also introduced challenges related to security, privacy, interoperability, and latency. Traditional blockchain frameworks, though effective in ensuring decentralized trust and immutability, are resource-intensive and unsuitable for constrained IoMT environments. To address these limitations, this study proposes a Lightweight BlockchainâIoMT framework tailored for secure remote healthcare in the post-pandemic era. The proposed architecture follows a three-tier design: (i) the IoMT Device Layer for real-time physiological data collection, (ii) the Fog/Edge Layer functioning as blockchain gateways for authentication and pre-processing, and (iii) the Cloud Layer for storage, analytics, and decision support. By incorporating lightweight consensus mechanisms such as Proof-of-Authentication (PoAh) or Delegated Proof-of-Stake (DPoS), the system minimizes latency and energy consumption compared to Proof-of-Work. Security is reinforced through elliptic curve cryptography (ECC) and smart contracts, ensuring data confidentiality, integrity, and controlled access, while complying with global standards such as HIPAA and GDPR. Experimental analysis demonstrates that the lightweight blockchainâIoMT framework outperforms conventional blockchain models in transaction throughput, scalability, and energy efficiency. Moreover, the integration of machine learning within the cloud layer supports predictive analytics and personalized care.
The transition to post-quantum cryptography poses an unprecedented challenge for Bitcoin and Ethereum, as it involves implementing a defensive downgrade that imposes immediate, severe costs with no tangible benefits. While quantum computers capable of breaking secp256k1 require between 523â2,500 logical qubits, with the author deriving 523 logical qubits as an algorithmic lower bound (not inclusive of arithmetic and ancilla qubits) for a canonical Shor/phase-estimation circuit using the formula QL = 2âlog2(n)â + 2 + âlog2(2 + 1/(2Δ))â for Δ = 0.001, and conservative estimates ranging up to 2,500 logical qubits based on comprehensive resource modelsâsignificantly less than the 2,100â2,400 logical qubits es- timated for general elliptic curvesâcurrent systems achieve only âŒ100 logical qubits. IBMâs quantum roadmap projects 500â1,000 logical qubits by 2029, placing the critical threshold within 4â10 years depending on which estimate proves accurate. This timeline collides with the reality that convincing decentralized communities to accept 50% capacity loss and 2â 3Ă fee increases may take 10â15 years in themselves, based on historical governance patterns where even beneficial upgrades required 2â5+ years. Current testnet implementations on per- missioned systems show measurable performance degradation. Critically, this data comes from fundamentally different architectures than permissionless networks, which will likely experience 30â50% additional performance degradation due to global verification requirements, heterogeneous hardware, and compounding propagation delays. This methodological limitationâextrapolating from permissioned to permissionless systemsârepresents a critical infrastructure failure that introduces massive uncertainty into migration planning. Com- pounding this challenge, secp256k1 is not officially approved by NIST under FIPS 186-5 or SP 800-186, creating additional regulatory vulnerabilities. Beyond transient impacts, PQC creates permanent state bloat, with quantum-resistant accounts requiring 59 times more storage (1,952 bytes / 33 bytes = 59.2Ă for ML-DSA-65), thereby accelerating centralization- tion. This paper presents a comprehensive framework acknowledging these harsh realities. While we propose specific BIP/EIP implementations and optimization strategies that might achieve 50â60% capacity retention, we recognize that the quantum threat timeline may now be shorter than even the minimum viable migration period. Unlike beneficial upgrades like SegWit (which took 20 months for activation and 5+ years for 50% adoption despite offering improvements), PQC migration is a purely defensive measure imposing only costs. The stark reality: blockchain communities must choose between accepting immediate emergency action or facing quantum vulnerability by 2029.
We explore the role of auditor reputation in driving the value of smart contract audits (SCAs) within the decentralized finance (DeFi) ecosystem. Given the lack of regulatory oversight and the risk of cybersecurity breaches against the protocols comprising the DeFi ecosystem, a marketplace has emerged for voluntary on-demand assurance to identify vulnerabilities in smart contractsâ coded logic. After documenting that market participants value SCAs and exploring the protocol attributes associated with the demand for smart contract audits, we show that auditor reputation can be established through both advertising (i.e., engagement on Twitter) and the delivery of a high-quality audit, which significantly shape the extent to which an SCA is valued. Additional analyses suggest that the value of an SCA is maximized when both high advertising and high audit quality are present, highlighting the complementary role of these two factors in enhancing auditor reputation. Furthermore, we find that events conceivably damaging the reputation of the auditor (i.e., breaches of protocols recently audited) generate a negative spillover to the auditorâs other recent clients. Overall, our study provides novel insights about the role of auditor reputation in emerging audit markets. This paper was accepted by Suraj Srinivasan, accounting. Supplemental Material: The online appendices and data files are available at https://doi.org/10.1287/mnsc.2023.02245 .
Decentralized resource markets are Web 3.0 applications that build open-access platforms for trading digital resources among users without any central management. They promise cost reduction, transparency, and flexible service provision. However, these markets usually have large workload that must be processed in a timely manner, leading to serious scalability problems. Despite the large amount of work on blockchain scalability, existing solutions are ineffective as they do not account for these markets' work models and traffic patterns. We introduce chainScale, a secure hybrid sidechain-sharding solution that aims to boost throughput of decentralized resource markets and reduce their latency and storage footprint. At its core, chainScale leverages dependent sidechains and functionality-oriented workload splitting to parallelize traffic processing by having each market module assigned to a sidechain. Different from sharding, chainScale does not incur any cross-sidechain transactions that tend to be costly. chainScale introduces several techniques, including hierarchical workload sharing that further sub-divides overloaded modules, and weighted miner assignment that assigns miners with vested interest in the system to critical modules' sidechains. Furthermore, chainScale employs sidechain syncing to maintain the mainchain as the single truth of system state, and pruning to discard stale records. Beside analyzing security, we build a proof-of-concept implementation for a distributed file storage market as a use case. Our experiments show that, compared to a single sidechain-based prior solution, chainScale boosts throughput by 4x and reduces confirmation latency by 5x. Also, they show that chainScale outperforms sharding by 2.5x in throughput and 3.5x in latency.
Ensuring the integrity of business processes without disclosing confidential business information is a major challenge in inter-organizational processes. This paper introduces a zero-knowledge proof (ZKP)-based approach for the verifiable execution of business processes while preserving confidentiality. We integrate ZK virtual machines (zkVMs) into business process management engines through a comprehensive system architecture and a prototypical implementation. Our approach supports chained verifiable computations through proof compositions. On the example of product carbon footprinting, we model sequential footprinting activities and demonstrate how organizations can prove and verify the integrity of verifiable processes without exposing sensitive information. We assess different ZKP proving variants within process models for their efficiency in proving and verifying, and discuss the practical integration of ZKPs throughout the Business Process Management (BPM) lifecycle. Our experiment-driven evaluation demonstrates the automation of process verification under given confidentiality constraints.
The emergence of blockchain technology has led to the development of smart contracts, which are considered the most significant due to their ability to support automated agreements within the system without the need for third parties. Although it might have its advantages, smart contracts do not address all the issues as they face various security vulnerabilities and legal issues and regulatory conditions. The study explores the current role of smart contracts by examining the vulnerability that threaten the integrity of these contracts like programming errors along with reentrancy hacking and architectural flaws of the blockchain systems. In this paper, the relationship between enforceability and jurisdictional issues and fault-based issues that pose legal challenges to smart contracts will be examined. The paper explores system regulations which arise out of these systems through evaluation of legal frameworks which are aimed at providing blockchain security within the existing legal economic frameworks. Studies on comprehensive smart contract risk have made researchers come up with recommendations that enhance security by way of blockchain system controls.