Pardomuan Pardosi, Tussi Sulistyowati, Khairil Anwar, Maria Yovita R Pandin · 5 authors
Background. This research explores global studies on crypto asset audits in Decentralized Finance (DeFi) from 2021 to 2025 through a systematic literature review (SLR) approach, highlighting technological advancements like machine learning and hybrid analytics that enhance audit accuracy, fraud detection, and scalability. Purpose. Auditing practices have expanded to include smart contracts, compliance, security, and environmental audits. However, challenges persist, such as the lack of global regulatory standards, decentralized control, security risks, and instability within DeFi protocols. Method. Despite advancements, effective audits in DeFi require aligning technological innovation with adaptable regulatory frameworks to ensure sustainability and trust. Results. Managerially, DeFi platforms should integrate emerging technologies into auditing practices and collaborate with regulators to address compliance gaps, particularly in anti-money laundering (AML) and transparency. Conclusion. Future research should focus on developing global DeFi regulations, exploring decentralized auditing methods, and investigating the impact of new financial systems like the metaverse on auditing practices.
The FinTech revolution is changing the way banks work around the world by combining blockchain and artificial intelligence (AI) to make safe, efficient, and customer-focused financial environments. A systematic review of AI blockchain convergence in modern banking, emphasizing its transformative impact on security, operational efficiency, and financial innovation. AI enables intelligent decision-making through applications such as fraud detection, credit risk assessment, algorithmic trading, and predictive analytics, while blockchain provides decentralized, tamper-resistant, and auditable transaction infrastructure. Digital currencies, asset tokenization, decentralized finance (DeFi), smart contracts, and automated regulatory compliance are some of the new FinTech applications driven by their synergy. This integration also supports Environmental, Social, and Governance (ESG) by facilitating real-time fund allocation, sustainable investment tracking, and transparent auditing. Despite its significant potential persisting, including regulatory ambiguity, scalability limitations, cybersecurity risks, and data privacy concerns, which limit large-scale adoption in banking systems. By synthesizing and analyzing key technological trends, the current capabilities of AI–blockchain integration in FinTech that the synergistic convergence of AI, blockchain, and financial technologies is a critical enabler for next-generation digital banking, promoting financial inclusion, resilience, and sustainable economic growth
Dr. Asmita Khanna, Nidhi Khanna, Anushka Keshari, Pooja Singh
In recent years, environmental sustainability has emerged as a pressing global concern, calling for innovative financing mechanisms to support grassroots green initiatives. Crowdfunding, as a FinTech innovation, offers a decentralized and participatory platform to fund such projects by engaging the general public. This study investigates consumer perception regarding the role of crowdfunding in financing environmental projects, with a focus on awareness, trust, transparency, and willingness to contribute. The research adopts a quantitative approach using a structured questionnaire distributed among Indian consumers. A sample of 200 respondents was collected via online and offline surveys. The data was analyzed using SPSS, employing tools such as descriptive statistics, reliability tests (Cronbach’s alpha), Pearson’s Correlation, Chi-Square, Multiple Linear Regression analysis to identify key variables influencing consumer willingness to fund environmental initiatives. The findings indicate that trust in crowdfunding platforms, perceived impact of environmental projects, and transparency in fund utilization are the most significant predictors of willingness to contribute. While awareness of crowdfunding platforms is moderate, actual participation remains low, highlighting the gap between intention and action. The study offers valuable insights for crowdfunding platforms, environmental NGOs, and policymakers. It emphasizes the need for enhanced digital literacy, platform credibility, and transparent communication strategies to mobilize funds for environmental sustainability. This paper contributes to the limited empirical literature linking green crowdfunding and consumer behavior in the Indian context.
Introduction The initiation of blockchain has brought about revolutionary changes across multiple industries, including finance. This study analyzes published research related to existing financial reporting and audit practices relevant to the implementation and efficacy of blockchain technology. The decentralized, immutable, and transparent blockchain ledger is set to change traditional practices by enhancing accuracy, reducing fraud, and ensuring real-time data accessibility. Methods This study identifies and measures the factors influencing blockchain implementation in specific auditing areas, particularly financial reporting. This research analyzed accounting professionals’ awareness of information and communication technologies (ICT), data security, data privacy, and training among accounting professionals. Hence, the study conducted a survey that targeted accounting practitioners, chartered accountants, financial analysts, and auditors with the aim of analyzing and testing hypothesized relationships using structural equation modeling in AMOS software. Results It presents an empirical analysis that examines the extent to which these factors influence blockchain technology implementation in financial reporting and auditing. We found a significant influence of blockchain technology use on the practices of financial reporting and auditing, leading to enhanced accuracy and transparency, reduced audit time, and increased trust in financial reports. Key findings indicate that while blockchain technology offers significant advantages, widespread implementation faces hurdles such as regulatory compliance, technological integration, and stakeholder acceptance. Discussion Researchers can use these findings to determine potential areas for further research. In addition, this research provides valuable information to practitioners in the field, academics, industry professionals, and policymakers considering the integration of blockchain technology with financial reporting and auditing.
Brett Martin, Polymeros Chrysochou, Carolyn Strong, Adam J. Mills
ABSTRACT This research note reviews research published in Psychology & Marketing in response to our call for papers for cryptocurrency research. Cryptocurrency is an area worth trillions of dollars and it offers a rich field of potential research topics for consumer psychology. Based on the articles by scholars published in Psychology & Marketing , we present a synthesis of the literature surrounding consumer behavior and cryptocurrency and propose a conceptual model to guide future research. This conceptual model organizes the literature by antecedents, process, and outcomes. In addition, we present a summary table of contributions from the research and offer a range of future research opportunities to be explored.
This article proposes a novel blockchain-based architecture for cross-border payments that integrates self-sovereign identity (SSI) and zero-knowledge proofs (ZKPs) to address the fundamental challenges of traditional systems. The proposed framework enables near-instant settlement while preserving privacy and ensuring regulatory compliance by design. By layering an identity infrastructure with ZKP-gated smart-contract escrows and regulatory oracles, the system allows participants to prove compliance with jurisdiction-specific requirements without revealing sensitive personal data. The architecture comprises three interconnected layers — identity, value, and compliance — that work together to streamline remittances, business transactions, and international payroll processes. Comparative analysis demonstrates significant advantages over both correspondent banking and current blockchain networks in terms of settlement speed, transaction costs, fraud prevention, and automated compliance. While the approach faces challenges, including network adoption barriers, technical scalability, and governance complexity, this study outlines promising directions for future development, particularly in the context of emerging central bank digital currencies (CBDCs) and regulated stablecoins.
Michael Demmler, Gibrán Aguilar Rangel, Rodrigo Cuéllar Ramírez
This study investigates on the relationship between cryptocurrencies and financial inclusion in Mexico. Using a basic, descriptive and qualitative research design, first a brief literature review is conducted in order to analyze the impact of cryptocurrencies on financial inclusion according to the state-of-the-art opinion of other researchers on the topic. Secondly, aiming to improve the understanding of the potential that cryptocurrencies may have for financial inclusion in Mexico, a digital questionnaire is applied to a sample of 415 individuals. Main results of the literature review show that fintech and blockchain technology including cryptocurrencies have the potential to improve the situation of financial inclusion, especially in developing countries. The conducted survey on consumer perceptions of cryptocurrencies reveals that there exists an important growth potential for the use of cryptocurrencies in Mexico. However, security issues, distrust, a lack of technological and financial education and deficient regulation are major obstacles on the way.
Blockchain sharding has emerged as a promising solution to address scalability and performance challenges in distributed ledger systems. In the sharded blockchain, yanking can reduce the communication overhead of smart contracts between shards. However, the existing smart contract yanking methods are inefficient, increasing the latency and reducing the throughput. In this paper, we propose a novel DRL-Based Cross-Shard Smart Contract Yanking (DCSCY) framework which intelligently balances three critical factors: the number of smart contracts processed, node waiting time, and yanking costs. The proposed framework dynamically optimizes the relocation trajectory of smart contracts across shards. This reduces the communication overhead and enables adaptive, function-level migrations to enhance the execution efficiency. The experimental results demonstrate that the proposed approach reduces the cross-shard transaction latency and enhances smart contract utilization. Compared to random-based and order-based methods, the DCSCY approach achieves a performance improvement of more than 95%.
This paper investigates the unresolved intellectual property challenges posed by non-fungible tokens (NFTs), a rapidly growing class of digital assets that blend decentralized technologies with creative content distribution. Despite widespread adoption across art, entertainment, and gaming sectors, the legal infrastructure surrounding NFTs remains fragmented, creating uncertainty for creators, buyers, and platforms alike. The objective of this study is to critically evaluate existing theoretical models—including property-based, contract-based, and provenance-centered approaches—and assess their adequacy in governing NFT-related rights and obligations. Methodologically, the paper employs a comparative legal analysis of current NFT licensing practices, supported by interdisciplinary review of blockchain architecture, smart contract functionalities, and relevant international IP frameworks. Based on legal theory, technical standards, and case studies, the paper identifies critical gaps in enforceability, rights attribution, and jurisdictional clarity. In response, the study proposes a hybrid legal-technical framework comprising seven interconnected components: Smart Licensing Infrastructure (SLI), an On-Chain Provenance and Rights Registry, Embedded Royalty Clauses with Legal Backing, Token-Linked Legal Contracts (TLCs), along with dispute resolution and jurisdictional compatibility. These elements collectively aim to bridge decentralized code execution with enforceable legal standards, facilitating clearer licensing arrangements, more reliable royalty enforcement, and scalable dispute resolution mechanisms. It presents a novel blueprint for technical capabilities of NFTs with the foundational requirements of intellectual property law. By incorporating legal metadata, verifiable authorship records, and jurisdictional parameters directly into NFT structures, the framework strengthens legal predictability without restricting innovation. This research contributes to academic discourse by advancing a multidimensional governance approach for digital assets, offering actionable pathways toward regulatory coherence and sustainable development within the NFT ecosystem moving forward.
The rapid evolution of Blockchain technologies has propelled the rise of Decentralized Finance (DeFi) as a transformative alternative to traditional financial systems. This study investigates the key drivers influencing the secure and inclusive adoption of DeFi, with a specific focus on the roles of Distributed Ledger Technology (DLT) and smart contracts. The research aims to examine how these technologies mitigate intermediary dependence, enhance transactional security, and promote financial inclusion. Utilizing a quantitative approach, data were collected through a structured questionnaire administered to 230 respondents with backgrounds in finance, technology, and Blockchain. The dataset was analyzed using descriptive and inferential statistics to explore the relationships between DLT features and adoption challenges in the DeFi ecosystem. The results indicate that smart contract integration significantly reduces reliance on intermediaries (52.2%) and enhances security and operational efficiency (56.5%). Furthermore, DLT-based identity verification mechanisms contribute to improved financial inclusion (56.5%). Despite these benefits, the study identifies ongoing challenges such as scalability limitations, energy consumption, and regulatory uncertainties that may hinder widespread adoption. The findings underscore the transformative potential of DLT and smart contracts in shaping a more transparent, efficient, and inclusive financial infrastructure. This research highlights the importance of technological innovation and cross-sector collaboration in addressing existing limitations and optimizing DeFi’s integration into global financial systems.
The growing adoption of Artificial Intelligence (AI) in the decentralized finance space has opened new opportunities to improve fraud detection, smart contracts, liquidity pooling, efficiency, and scalability of decentralized finance (DeFi) platforms. Despite the global expansion of AI-powered DeFi applications, Nigeria faces unique challenges such as regulatory uncertainty, high fraud penetration, low digital literacy, and infrastructural gaps, which hinder full integration and trust in AI-enabled DeFi systems. This study is motivated by the need to understand how AI can foster inclusive and transparent financial ecosystems. Therefore, the study examined the effects of AI adoption on decentralized finance in Nigeria. It adopts a survey research design, with a sample size of 400 active DeFi participants determined through Cochran formula. Regression analysis was performed to examine the relationships between variables using the Statistical Package for Social Sciences (SPSS Version 23). Findings reveal that stakeholders’ perceptions have a positive and significant association on AI’s role in building trust and security in Nigeria (0.627; 0.000<0.01). Perceived barriers also have a positive and significant association with the integration of artificial intelligence (AI) into DeFi systems by blockchain developers and financial professionals in Nigeria (0.506; 0.000<0.01). DeFi users have a significant and positive association with AI-driven tools used in decision-making for decentralized financial activities in Nigeria (0.551; 0.000<0.01). Regulatory changes have a significant and positive association with AI adoption in Nigeria (0.519; 0.000<0.01). AI practitioners have a significant and positive association with the development of decentralized finance in Nigeria (0.614; 0.000<0.01). Based on these findings, the study concludes that AI is a powerful tool that can potentially revolutionize the face of decentralized finance in Nigeria. The study further recommended that policymakers and regulators develop and scale an adaptive AI-DeFi regulatory framework by developing a tiered regulatory sandbox specific to DeFi-AI platforms, enabling controlled experimentation under policy oversight and a national registry of certified AI-DeFi practitioners.
As the deadline for DAC8 implementation approaches, this article assesses the readiness of Reporting Crypto Asset Service Providers to adapt to new regulatory requirements. It explores the complexities of multi-jurisdictional compliance, the impact of stringent regulatory frameworks like MiCA, and the challenges posed by local legislation, such as deadlines for reporting. The article also delves into the future of crypto asset reporting, highlighting developments in the United States and ongoing discussions about the regulation of decentralized finance. With less than five months remaining, the article raises critical questions about whether Reporting Crypto Asset Service Providers are adequately preparing for DAC8 or awaiting further legislative clarity. This comprehensive analysis provides valuable insights and suggested actions for entities navigating the dynamic regulatory environment of crypto assets.
Philip Kwaku Adjei, Qin Zhi-guang, Isaac Amankona Obiri, Ansu Badjie · 8 authors
Smart contracts have revolutionized decentralized applications by automating agreement enforcement on blockchain platforms. However, detecting vulnerabilities in smart contract interactions remains challenging due to complex state interdependencies. This paper presents a novel approach using multi-agent Reinforcement Learning (MARL) to identify smart contract vulnerabilities. We integrate a Hierarchical Graph Attention Network (HGAT) into a Multi-Agent Actor-Critic framework, decomposing vulnerability detection into complementary policies: a high-level policy encoding historical interactions and a low-level policy capturing structured actions within contract state spaces. By modeling interactions as multistep reasoning paths, our MARL framework effectively navigates complex transaction sequences and resolves semantic ambiguities across different contract states. Experimental evaluations on real-world blockchain datasets demonstrate significant improvements in detecting multiple vulnerability types. For reentrancy attacks, our model achieves 93.8% accuracy and an 89.8% F1 score. The framework also performs strongly in detecting front running (88.9% accuracy), denial-of-service attacks (91.2% accuracy), and unchecked low-level vulnerabilities (91.6% accuracy), outperforming existing approaches across all vulnerability categories.
Financial decisions in production systems must satisfy a layered set of obligations: risk tolerance, regulatory compliance, fairness constraints, privacy requirements, and operational service levels.Most machine learning models optimize predictive objectives but treat policy and compliance as external checks.This separation creates avoidable failure modes: decisions that are accurate yet non-compliant, long audit cycles, and limited customer recourse.This paper proposes Policy-Carrying Decision Models (PCDMs): decision systems that emit not only an outcome (approve/decline/route) and calibrated confidence, but also a machine-checkable proof that the decision adhered to an explicit policy expressed in a domain-specific language (FinPol).At inference time, the model (and its surrounding decision logic) produces a decision receipt containing the outcome, explanations scoped to permissible disclosure, and a verifiable policy proof.Optionally, a zero-knowledge variant allows third parties to verify compliance without access to sensitive features or thresholds.
Renan Yamaguti, Luiz Carlos Branquinho Caixeta Ferreira, Lucas L. Motta, Raphael M. Assumpção · 7 authors
This paper investigates the integration of Internet of things (IoT) technology with blockchain to enhance transparency, accountability, and operational efficiency in smart contract execution for IoT ecosystems. The proposed approach extends the Three-Phase Methodology (TpM) by introducing an innovative entity, the IoT Operator, which acts as a custody caretaker, contract enforcer, and mediator. By leveraging blockchain's secure and immutable ledger, the IoT Operator ensures the reliable monitoring and governance of IoT applications. A PoC implementation conducted at the Eldorado Research Institute demonstrates the methodology's effectiveness, realizing a significant reduction of 95.83% in equipment search time. This work highlights the practical advantages of integrating blockchain and IoT within a structured framework, emphasizing the need for tailored, application-specific solutions rather than generic decentralization. The findings offer actionable guidelines for implementing blockchain in IoT systems, paving the way for more secure, efficient, and resilient IoT applications.
Giacomo Vella, Luca Gastaldi, Francesco Paolo Appio
The rise of Decentralized Applications (DApps) represents a significant shift in how digital services are developed and governed, utilizing blockchain technology to eliminate central oversight and facilitate peer-to-peer interactions. While blockchain's algorithmic governance mechanisms are designed to enforce transparency and decentralization, human-driven processes—such as leadership roles, community engagement, and social norms—continue to play a pivotal role in shaping governance outcomes. This study investigates how these non-algorithmic factors influence the decentralization of DApp governance. Through a multiple case study of seven Decentralized Finance DApps, we analyze the governance structures, decision-making processes, and power dynamics at play. Our findings reveal that, despite the technological promise of decentralization, human-driven processes can reintroduce centralization risks, impacting inclusivity and decision-making. We propose an integrated governance framework that emphasizes human-driven mechanisms, contributing to the discourse on the practical realities of decentralized governance in DApps. The study offers theoretical and empirical insights into how decentralization is enacted and challenged in blockchain-based ecosystems. • Human-driven processes in DApps governance can reintroduce centralization risks despite tech promises. • Proposes an integrated framework emphasizing human-driven governance to address limits of algorithms. • Core teams often retain major decision power, impacting decentralization and creating power imbalances. • Misaligned incentives hinder participation, concentrating power and affecting DApps' decentralization.
Purpose This study investigates whether individuals facing financial constraints, as indicated by the use of alternative financial services (AFS), are more likely to invest in cryptocurrencies, potentially using the new financial instrument as an alternative means to alleviate their financial stress. Additionally, we examine whether financial education moderates this relationship. Design/methodology/approach Using data from the 2021 National Financial Capability Study (NFCS), we employ an ordinary least squares (OLS) regression to examine the relationship between cryptocurrency investment and AFS use. Furthermore, we implement the propensity score matching (PSM) analysis and an instrumental variable (IV) approach to reduce potential endogeneity concerns. Finally, we incorporate interaction terms between financial education and AFS use in the OLS model to assess the moderating effect of financial education. Findings We find that AFS use relates to a significantly higher likelihood of participating in cryptocurrency investment, suggesting that people under financial constraints are more inclined to invest in cryptocurrencies. This could be attributed to the potential of cryptocurrencies to generate substantial returns, where people under financial stress see them as an opportunity to improve their financial condition. This is further supported by an increased propensity of participating in cryptocurrency investment associated with job loss due to the pandemic. Finally, we also find that financial education negatively moderates the linkage between financial constraints and cryptocurrency investment. Originality/value This study provides novel insights into the behavioral drivers of cryptocurrency investment, particularly under financial constraints and demonstrates the heterogeneous effect of financial education. By bridging gaps in the literature on personal finance and cryptocurrency markets, the study offers valuable implications for financial education and policies that could help maintain individual financial stability in times of economic downturns.
Leonardo Soares dos Santos, Ana Paula Neutzling Gomes, P Rupino
The widespread adoption of distributed energy resources poses challenges to the operation and management of electricity grids. The intrinsic characteristics of such resources, such as variability and dispatchability, require increased flexibility in power systems. Demand-side flexibility is expected to play a significant role in future power systems, necessitating a more active role for consumers and prosumers in the energy system. To effectively operationalize flexibility and accommodate the growth of distributed generation, there is an urgent need for active and automated local management of energy resources alongside local transactions and energy exchanges. Technologies like blockchain and smart contracts offer significant potential for facilitating energy transactions within decentralized systems, mainly due to their capacity to facilitate secure microtransactions over time. Although their potential is recognized and review works exist, a detailed understanding of their characteristics and functionalities is lacking, which is critical for the deployment of those technologies. In this regard, the authors utilize the Prisma protocol to conduct a comprehensive analysis of current developments, identify primary innovative contract functionalities, quantify their utilization, and uncover potential gaps in their application in local energy transactions. They were analyzed 197 smart contracts, where 179 indicated at least one functionality. The findings suggest that most of these functionalities focus on energy transactions without details. They were identified and characterized in terms of the type of blockchain on which these smart contracts were developed. The conclusions show that they primarily work on a private Ethereum, promoting transactions between two peers in real-time and in the day ahead. The study culminates in an inclusive conclusion that spans the range of smart contract functionalities across different aspects of blockchain technology and temporal trade dynamics. This analysis reveals a significant gap in the transaction approach involving multiple sellers and buyers, underscoring the need for further exploration. This gap presents an exciting opportunity for future research and development in energy management, particularly in the context of blockchain's potential to facilitate local energy transactions. • Review of smart contracts for energy trading based on 127 reviewed articles. • Presentation of the smart contract's functionalities for energy trading. • Critical features overview of reviewed energy trading platforms. • Identification of the challenges in applying smart contracts in energy transactions. • Recommendations to consider when implementing smart contracts for energy trading.
Abstract …is “should I buy any?”. Under Bayesian portfolio theory, ongoing zero weights in cryptocurrency are surprisingly difficult to generate. With 10 years of prior data, equity investors would need very pessimistic priors on mean returns to never buy cryptocurrency: −10.6 percent per month for Bitcoin, and −19.6 percent for a diversified cryptocurrency portfolio. Most priors that involve never purchasing cryptocurrency imply shorting it. Optimal weights are generally small, non-trivial (1–5 percent magnitude), frequently positive, and smooth. The certainty equivalent gains from cryptocurrency are comparable to international diversification and prominent anomaly portfolios. Costs (storage and fees) would need to exceed 21–39 percent annually to deter trading.
• Novel to literature we identify the macroeconomic determinants of cryptocurrency asset holdings.. • the more emigrants of developing countries living abroad, they intend to hold more cryptocurrencies to ease the transaction costs. • As countries governance body improves, individuals tend to hold less cryptocurrencies. Employing cross-sectional data of 142 countries worldwide, this paper examines the macroeconomic factors in shaping cryptocurrency adoption. We find that the aggregate impact of inflation volatility on crypto adoption is dependent on the level of corruption control in higher-income countries. The control of corruption appears to discourage cryptocurrency adoption, emphasizing the role of institutional trust in financial choices. We also find that higher emigrant ratios in non-high-income and lower-income countries are associated with increased cryptocurrency usage, which suggests that migrants tend to use cryptocurrencies for faster, cheaper remittances compared to traditional services. Last, we find that internet penetration plays a key role in crypto adoption, particularly in higher-income countries with advanced digital infrastructure.
Zusammenfassung Die Distributed Ledger Technology (DLT) bietet das Potenzial, traditionelle Kapitalmarktintermediäre durch Technologie zu ersetzen. Mit der PilotVO sollte der Weg für solche DLT-basierte Infrastrukturen geebnet werden, indem deren Betreibern in einem sachlich und zeitlich begrenzten Rahmen gewisse rechtliche Erleichterungen gewährt werden. Die praktische Resonanz der PilotVO blieb bislang allerdings – vorsichtig ausgedrückt – begrenzt. Dieser Beitrag hat das Ziel, die Ursachen der zurückhaltenden Annahme der PilotVO in der Praxis herauszuarbeiten und Vorschläge zur Steigerung der Attraktivität von DLT-Marktinfrastrukturen zu unterbreiten.