Finance, supply chain, and decentralized applications are some of the industries that have undergone a revolution in relation to blockchain technology, and smart contracts are at the center of this revolution. Smart contracts are computer protocols that are programmed on blockchain systems and which allow transparency, immutability, and decentralization. Nonetheless, governance in a blockchain is a problem area, because the conventional centralized systems are inconsistent with its decentralised characteristic. This article discusses self-governance of blockchain whereby decision making is computerized using smart contracts to achieve decentralized regulations. It reviews the prevailing conditions in blockchain governance, issues and the way smart contracts would enhance transparency, efficiency and security. Also provided in the study are the advantages and drawbacks of decentralized governance, which includes issues of scalability and security, and the möbius strip connection between autonomous governance and blockchain platforms. Moreover, it assesses the place of decentralized autonomous organizations (DAOs) in blockchain governance and the issues of their implementation.
Smart cities present a transformative paradigm for urban development, yet securing sustainable financing remains a critical challenge. While traditional funding mechanisms struggle with scalability limitations, FinTech innovations like Initial Coin Offerings (ICOs) have emerged as a viable alternative. Leveraging blockchain technology, ICOs enable decentralized capital raising through token sales, offering transparency and global investor access. However, their effectiveness is compromised by market volatility, information asymmetry, and the absence of reliable predictive frameworks. This study addresses these limitations by developing an explainable hybrid machine learning model that combines: (1) Light Gradient Boosting Machine (LGBM) for efficient feature selection through histogram-based learning, (2) Optuna-optimized Extremely Randomized Trees regression that mitigates overfitting via enhanced randomization while excelling with noisy financial data, and (3) interpretability tools including SHAP values and feature importance analysis. Optuna's automated hyperparameter optimization further enhances computational efficiency, enabling robust predictions of post-ICO returns. The proposed model demonstrates superior predictive performance (R²=0.814, MSE=0.005, MAE=0.051), significantly outperforming both linear regression and state-of-the-art ML models. Key findings identify token supply (63% predictive power) as negatively correlated with returns - reflecting dilution effects and investor perceptions of scarcity- while fundraising success (15%) and Bitcoin returns (8%) show positive influences. These results provide practical guidance for investors and regulators, while establishing ICOs as a potential sustainable financing mechanism for smart city initiatives. The study contributes both methodologically through its optimized hybrid architecture and practically by enhancing decision-making in blockchain-based urban development financing.
Ali Fakhri Abbas, Mustafa Radif, Haider Mahdi Rammoo, Salah Mahdi Saleh Alkhafaji · 6 authors
The rapid digitalization of financial services has made FinTech loan processing highly susceptible to security threats and inefficiencies. An innovative contract-based blockchain framework is proposed to ensure secure, transparent, and automated loan processing. Current FinTech loan systems often rely on centralized architectures, leading to risks such as data breaches, fraud, lack of transparency, and delayed loan disbursement due to manual verifications. These issues hinder trust and operational efficiency in digital lending platforms. To overcome these limitations, the proposed framework employs the Blockchain-Based Layered Framework (B-BLF), which provides a structured approach to develop and evaluate technological artifacts. Through iterative problem identification, design, and evaluation phases, B-BLF ensures the solution is both innovative and effective. The smart contract-based solution uses the Ethereum blockchain to automate loan approval, disbursement, and repayment processes. It validates borrower information, executes contractual terms autonomously, and stores transactions immutably, thereby reducing human intervention and operational risks. The findings reveal that the proposed method enhances data integrity of 97.2%, speeds up loan approval of 95.6% and disbursement, reduces fraud, and improves user trust over 98.2% in FinTech services. The framework proves to be a scalable and secure solution for modernizing financial loan systems.
Wisam Ali Hasan, Saif Saad Hameed, Ahmed Imran Fattah, Saad Jader Mutlak · 6 authors
Blockchain-Assisted Trust and Transparency in Cross-Border Digital Asset Management Systems aims to apply blockchain technology in enhancing digital asset management by increasing integrity, traceability, and compliance across borders. The study explores how the decentralized and immutable nature of blockchains can address persistent issues in global asset transactions. Existing cross-border digital asset management systems encounter issues of trust, lack of interoperability, regulatory discrepancies, and inadequate transparency. These limitations hinder the immediacy of verification, increase susceptibility to fraud, and impede compliance across multiple jurisdictions. To fill these gaps, this study formulates a Blockchain-Enabled Federated Identity Management framework (B-EFIM). The methodology is characterized by the iterative design, development, and evaluation of a blockchain-based system integrating smart contracts adjustable to specific jurisdictions with a permissioned distributed ledger, empowering clear, secure, and verifiable transactions. The proposed approach enables real-time supervision of asset movements, validates automated compliance, and establishes trust through verifiable records that are accessible to all stakeholders, including regulators, financial institutions, and asset custodians. It enables seamless alignment with regulatory requirements while enhancing operational effectiveness. The B-EFIM framework significantly enhances the practitioner's ability to monitor asset tracing and compliance issues while deepening stakeholder confidence in cross-border transfers of digital assets, proving it to be an effective and scalable solution for international financial infrastructures.
This paper sets out to explore how blockchain-based technologies, particularly non-fungible tokens (NFTs), are influencing future business models. Drawing on the relevant literature and a multiple case study of blockchain ventures, we demonstrate how the technology leads to new polyadic mechanisms of value creation and value capture. A clarification of NFTs and related concepts, together with their use values and exchange value determinants, led us to argue that the polyadic mechanisms differ from those in dyadic and triadic business models. Overall, we identify a total of 39 NFT technology affordances that fall into four types: utility, social, financial, and legal affordances. In addition, the NFT business ecosystem is mapped in terms of sources of generativity, mixed-side network effects, and the convergence of complementors within the ecosystem. Finally, this study explores three distinct mechanisms of stakeholder collaboration using NFTs: token distribution and fundraising, polyadic value creation and capture, and smart contract-enabled facilitation of stakeholder interactions. Based on the insights, we discuss the impact of NFTs and blockchain technology on society (illustrated by two cases of NFT ticketing and decentralized apps), and the implications for theory, practice, and policy. • Blockchain technology enables newly emerging business models with polyadic relationships. • Novel business models in Web 3.0 environments involve multiple use values and exchange value determinants. • NFT Technology affordances identified in terms of utility, social, financial, and legal affordances. • The emerging ecosystem is characterized by sources of generativity, mixed-side network effects, and convergence.
Crowdfunding is a widely used method for raising funds, yet existing platforms often suffer from transparency issues, security vulnerabilities, and centralized control. This study proposes a decentralized crowdfunding system built on the Ethereum blockchain, utilizing smart contracts to enhance trust and automate transactions. The system incorporates a simple majority voting mechanism, in which at least $50 \%+1$ of donors must approve any fund withdrawal, thereby improving accountability and reducing fraud potential. Developed using the Scrum methodology, the system was tested through black-box validation and successfully executed core features including campaign creation, contribution, voting, and withdrawal. The results confirm that the implementation ensures transaction immutability, accurate donor verification, and transparent fund management, demonstrating the potential of blockchain-based crowdfunding to overcome the limitations of traditional platforms.
Decentralized finance (DeFi) is indeed transforming the financial ecology, offering technological solutions for lending, borrowing, and trading that operate without intermediaries. However, with the rapidity of DeFi's growth comes immense risks like smart contract vulnerabilities, untypical market behavior, or scams. The objective of this study is to investigate the application of Artificial Intelligence (AI) and Blockchain technology to efficiently manage risks in DeFi platforms. Transparency, nonrepudiation, and decentralized control are the qualities guaranteed by Blockchain, and on the other hand, predictive analytics, proactive anomaly detection, and fraud prevention are the strengths of AI. The best use of these technologies in terms of risk assessment would be to design a system based on AI and blockchain - real-time risk assessment directly from the blockchain, secure data sharing assistance, and automating the risk mitigation strategies. We developed an artificial intelligence-based risk prediction model that was trained using past DeFi transaction data and we also drew up a framework that helps smart contracts provide automated responses to cybersecurity incidents. Our framework is more accurate in comparison with existing methods through simulations and case studies when it comes to risk detection and mitigation. This study proposes a reliable and resilient approach to the DeFi ecosystem that will boost further acceptance and credibility of blockchain-based financial systems.
Mustafa M. Abd Zaid, Ali Abdulkareem Hadi Al-Magsoosi, Kawther Al-Fatlawi, Orhan M. Albayati · 6 authors
Decentralized Finance (DeFi) platforms are reshaping the financial landscape by enabling secure, peer-to-peer (P2P) lending through blockchain technology and trustless smart contracts. These platforms eliminate the need for traditional intermediaries, offering transparency, automation, and reduced transactional friction. However, existing DeFi lending solutions face challenges such as smart contract vulnerabilities, poor user trust, limited risk management, and inefficient system design processes. These issues often result in security breaches, collateral mismanagement, and reduced adoption. To address these limitations, this paper proposes a framework using the Blockchain-Based System Development Life Cycle (BSDLC) methodology. BSDLC introduces structured phases—including requirement analysis, system design, smart contract development, testing, deployment, and maintenance—tailored to the unique needs of blockchain-based systems. These phases ensure systematic identification of risks, secure coding practices, and continuous verification of smart contract behavior through rigorous testing. The proposed BSDLC-based method is applied to develop a safe, trustless P2P lending application on the Ethereum blockchain. The platform enables users to borrow and lend digital assets using collateralized smart contracts, which are enforced by oracles for real-time asset valuation. The implementation ensures tamper-proof loan execution, automated liquidation, and complete transparency, all without requiring central oversight. The findings reveal that applying BSDLC significantly enhances the security, reliability, and usability of decentralized finance (DeFi) lending applications. It reduces vulnerabilities and ensures system integrity, making it a scalable and trustworthy solution for modern financial ecosystems.
Yusuf Oli Rahat, Md Kamrul Islam, Shah Farhan Rabbani
Blockchain-based financial systems are increasingly evaluated not only as speculative infrastructures but as operational payment, settlement, and record-keeping networks that can be benchmarked against incumbent financial rails. This paper develops a quantitative, data-driven framework for assessing blockchain-based financial systems across four dimensions that matter in global markets: transaction efficiency, transparency, cost optimization, and overall performance resilience. Drawing on evidence from public blockchain networks, payment and remittance statistics, policy experiments, and institutional distributed-ledger pilots, the study synthesizes academic literature with world data from the World Bank, the Federal Reserve Bank of New York, the Bank for International Settlements, Visa, Bitcoin, Ethereum, and Solana documentation and analytics. The paper proposes a metrics architecture that combines latency, throughput, fee burden, settlement certainty, auditability, availability, governance quality, and interoperability into a unified comparative scorecard. It then applies the framework to three categories of blockchain-based finance: public permissionless chains, permissioned institutional distributed ledgers, and hybrid tokenized payment systems. The evidence suggests that blockchain systems create measurable gains in traceability, programmability, and atomic settlement, especially in cross-border and multi-party workflows where reconciliation frictions are costly. However, these gains are uneven. Public chains often face volatility in fees, congestion risk, and governance externalities, while permissioned systems improve control and compliance at the expense of openness and composability. The paper argues that the relevant policy and managerial question is therefore not whether blockchain is universally superior, but under which transaction environments it dominates legacy systems on speed, transparency, cost, and operational risk. The study concludes with a research agenda for standardized blockchain performance metrics, institution-grade benchmarking, and explainable analytics for digital financial infrastructure.
Nguyen Thi Kim, Ho Thi Hien, Vu Thien Bach, Bui Hong Cuong · 5 authors
In Vietnam, the digital banking model has undergone rapid development in recent years. This paper evaluates the current state of digital banking development in Vietnam from several aspects: (i) the legal framework for digital banking development; (ii) market participants in the digital banking sector; (iii) methods of digital banking development; and (iv) the quality of digital banking services, thereby identifying the current level of digital banking development in Vietnam. According to the research team's assessment, digital banking in Vietnam is currently in the formative stage, with significant potential for growth. The application of digital technology in banking operations in Vietnam has had a positive impact on operational models, driving a strong transformation in internal business systems and in the provision of advanced products and services to customers. The application of digital technology in banking is considered the next phase after digitalization in the digital transformation process, serving as an important support for the digital banking strategy of the banking industry. This study aims to discuss digital technologies applied in banking operations, such as Artificial Intelligence (AI), Machine Learning (ML), the Internet of Things (IoT), Big Data, Cloud Computing, Distributed Ledger Technology (DLT), Blockchain, Biometrics, and the products and services created by financial technology companies (Fintech). The application of Big Data in banking is particularly significant for building and managing data resources in the finance and banking sector. Currently, an increasing number of banks are adopting Big Data in their operations to keep pace with the rapid development of modern society, where customers seek simplified, fast, and convenient procedures. Big Data is a powerful tool that can help banks achieve this goal. However, the implementation of Big Data in banks still faces certain challenges.
With the advent of Web3, many online services have been revolutionised through decentralisation. With blockchain as the main decentralisation engine, online social media platforms have witnessed a new life. Recently, memes have come into play, providing new opportunities for community aggregation, giving birth to the so-called memecoin phenomenon. Memecoins are blockchain-backed cryptocurrencies that can be freely traded, and people can discuss them online. They represent a new scenario in which social and economic aspects are tightly intertwined, but external figures or events can also influence the activity of each token. In this paper, we provide an analysis of the relationship between the social and economic spheres of memecoins and how external factors influence their activity. We conducted our analyses on six case studies taken from different contexts and with unique histories, downloading data from various subreddits and blockchains. The findings show that each memecoin has unique distinctive features and that the activity around them is influenced by crypto-influencers, scams, or even external events.
The global financial ecosystem is undergoing a profound transformation driven by the convergence of Environmental, Social, and Governance (ESG) imperatives, Artificial Intelligence (AI) capabilities, and Financial Technology (FinTech) innovations. This paper explores the synergistic nexus among these three forces and articulates how their intersection is reframing the trajectory of sustainable finance. By integrating ESG objectives with AI-powered intelligence and FinTech-driven efficiency, the study demonstrates how financial systems can evolve from traditional, compliance-based models to adaptive, data-driven, and ethically informed architectures that promote long-term sustainability and inclusiveness. Using a multidisciplinary research framework, the paper examines the mutual reinforcement between sustainability principles, technological innovation, and digital finance mechanisms. It assesses how AI enhances ESG data management through advanced analytics, natural language processing, and machine learning algorithms that can measure, predict, and optimize sustainability outcomes. These technologies improve data transparency, reliability, and comparability, addressing one of the core challenges of ESG evaluation and reporting. In parallel, FinTech platforms like spanning blockchain, decentralized finance (DeFi), green digital bonds, and peer-to-peer investment systems-enable traceable and democratized financial flows that embed sustainability values at the transaction level.The study proposes a novel conceptual model, the “Sustainable Intelligence Framework (SIF)”, which delineates how ESG indicators, AI insights, and FinTech mechanisms interact within a dynamic feedback system. The SIF illustrates that when these domains operate synergistically, they not only enhance decision-making efficiency but also generate compounded social, environmental, and economic value. Through case studies of emerging economies and advanced markets, the research uncovers practical applications, regulatory considerations, and ethical implications of the ESG‑AI‑FinTech triad. The analysis further highlights how AI-driven FinTech can facilitate green credit scoring, impact investment assessment, and automated sustainability auditing, while blockchain ensures trust, traceability, and reduced information asymmetry across value chains. The findings affirm that the integration of ESG, AI, and FinTech is not merely convergent but transformative in creating a synergistic ecosystem that can accelerate the transition toward a sustainable, transparent, and equitable financial future. This synergy also redefines risk management and governance paradigms, positioning sustainability as a strategic driver rather than a regulatory constraint. The paper concludes by emphasizing that the ESG‑AI‑FinTech nexus represents the next frontier in sustainable finance, offering a blueprint for policymakers, institutions, and innovators to harmonize profitability with planetary and social well-being.
Maksym Ivasenko, Сергій Михайлович Фролов, Mykhaylo Heyenko, Nataliia Kolodnenko · 5 authors
This article highlights the results of a study investigating whether the growth of syndicated loan activity among US commercial banks was driven by measurable operational cost savings through blockchain-powered back-office automation. Quarterly data from Q1 2010 to Q4 2024 on syndicated loan stocks, commercial and industrial loans, real GDP, bank assets, and non-interest expenses were obtained from the Federal Reserve System’s FRED database. A dummy variable was applied after 2016 to denote the implementation of the first production-level Distributed Ledger Technology (DLT) pilots. Using the Autoregressive Distributed Lag Model (ARDL) bounds testing approach, evidence of cointegration is found and long-run elasticity is estimated: a steady 1% increase in the volume of syndicated loans reduces the operating expense ratio by 0.147%, which means that almost doubling the volume of loans in the resulting sample leads to approximately 15% structural reduction in the burden on banks’ back offices. The associated error correction model gives a short-run elasticity of –0.276 (i.e., a 1% quarterly shock to loan volume reduces expenses by 0.276 p.p.) and a 47% correction rate to a new equilibrium. Diagnostic tests confirm the absence of sequential correlation and resistance to heteroscedasticity by White’s standard errors. System-wide process improvements were evaluated by examining Hyperledger Fabric’s permissioned channel blockchain, smart contract automation, and multi-signature approval policies, which together simplify Know Your Customer (KYC) document workflows and settlement processes. The findings provide empirical evidence that enterprise DLT platforms deliver significant cost reductions for syndicated loan transactions, with implications for bank, fintech, and regulatory strategies.
The rise of decentralized exchanges (DEXs) heralds a paradigmatic shift in financial trading—from reliance on centralized intermediaries to peer‑to‑peer, trustless systems undergirded by blockchain and smart contracts. This article explores global trends in DEX innovation, the growth of decentralized finance (DeFi), and the evolving role of DEXs in reshaping capital markets. It also analyzes India’s adoption trajectory, regulatory context, and early indicators from Tamil Nadu, including blockchain governance initiatives and nascent fintech activity. Simulated and reported data are integrated to provide projections and policy implications.
The adoption of cryptocurrency as a payment instrument by firms has sparked ongoing debates about how such strategic moves are perceived by key stakeholders. This study investigates how investors react when an e-commerce firm adds or withdraws from providing cryptocurrency as a payment option. To explore these aspects, we examine two cases: MercadoLibre’s decision to introduce Meli Dólar as a payment option, representing the inclusion of cryptocurrency, and eBay’s withdrawal from the Libra project, representing strategic exclusion. We assess the causal impact of these strategies by employing a Regression Discontinuity Design (RDD) and deriving the observation period by using an optimal bandwidth method. The results indicate that there was an immediate decline in share prices following the adoption of the Meli Dólar as a payment instrument and an immediate increase following the decision to withdraw from using Libra as a payment instrument. The findings suggest that including cryptocurrency as a payment method may run counter to investor expectations. This study contributes to the discourse on the viability of cryptocurrency adoption by e-commerce firms and emphasizes the importance of understanding how decisions around cryptocurrency convey market signals, which may have strategic implications for a firm’s overall strategy.
This paper proposes DeFiDonate, a web-based decentralized application that facilitates the transparency and privacy of donations to charities while also increasing trust through the use of blockchain and various Decentralized Finance (DeFi) solutions. The problem with traditional donation models is that they lack traceability and are centralized, with limitations and restrictions on donors. DeFiDonate proposed using Elliptic Curve Cryptography (ECC), Non-Fungible Tokens (NFTs), a form of smart contracts, and Elliptic Curve Digital Signature Algorithm (ECDSA).DeFiDonate provides flexibility for donors by making either a direct donation to beneficiaries or donating to a liquidity pool, then distributing funds through a decentralized voting system and encrypting sensitive data, like the wallet addresses, donation amounts, and donors' NFT identifiers with ECC, meaning it's recorded in both on-chain and off-chain safety, and confirming the transactions and validating the signature is unauthentic with ECDSA, the implementation of DeFiDonate composed on Django and Solidity for the creation of smart contracts; Truffle, Ganache, and MetaMask for local testing. These results indicate that the system is safe for use, as it provides transaction integrity and information security. Based on performance analysis carried out in Truffle Develop, the use of NFTs within contracts was found to be associated with a notable decrease in execution time. Another application blockchain developers can discuss is DeFiDonate, which exemplifies a trusted, decentralized, and transparent method of digital giving.
Fatima Zohra Benali, Wildan Miftahussurur Miftahussurur, Rijal Ali Santos Santos, Zaenol Hasan
This study examines the application of qiyas (analogical reasoning) in assessing the legality of cryptocurrency within Islamic law, particularly through the fatwas issued by the National Sharia Council of the Indonesian Ulema Council (DSN-MUI). As cryptocurrency emerges as a significant innovation in the economic sector, the research analyzes classical fiqh texts and draws analogies with paper money to identify essential criteria for cryptocurrency to be considered a legitimate medium of exchange, including being valuable, pure, transferable, and beneficial. The findings indicate that while cryptocurrency lacks official backing, its value is derived from societal trust in blockchain technology. The study emphasizes the necessity for cryptocurrency transactions to comply with Sharia principles, avoiding elements of riba, gharar, and maysir. Additionally, it highlights the importance of collaboration among scholars, academics, and practitioners in Sharia economics to develop responsive fatwas and policies that address technological advancements and societal needs. Furthermore, to provide a broader perspective, examples from other countries, such as Malaysia, Algeria, and Morocco, can be referenced to understand how different Islamic authorities approach the regulation and assessment of cryptocurrency. For instance, Malaysia's Shariah Advisory Council has recognized cryptocurrencies under certain conditions, while Algeria has outright banned their use due to concerns over their volatility and speculative nature. Morocco, on the other hand, has issued warnings about the risks associated with cryptocurrency, despite the growing global interest in digital currencies. By examining these diverse approaches, the research can offer a more comprehensive understanding of how cryptocurrency fits within the frameworks of Islamic finance and law across different contexts. This research contributes to the discourse on integrating modern financial systems with Islamic principles, suggesting that cryptocurrencies can be utilized within Islamic economies if they adhere to Sharia guidelines. Ultimately, the study aims to provide practical guidance for Muslims in conducting economic activities in the digital era while leveraging technological progress to enhance welfare and prosperity.
Jundri R. Berutu, Yuhelson Yuhelson, Dedy Ardian Prasetyo
The rapid growth of cryptocurrency trading in Indonesia reflects the increasing integration of digital assets into the national economy. Initially classified as tradeable commodities under the supervision of the Commodity Futures Trading Regulatory Agency (BAPPEBTI), cryptocurrencies have recently been repositioned within the financial sector's regulatory framework, following the enactment of Law No. 4 of 2023 on Financial Sector Development and Strengthening (UU PPSK). This study analyzes the legal and institutional implications of shifting supervisory authority to Indonesia's Financial Services Authority (OJK) and examines the regulatory challenges in ensuring legal certainty within this evolving digital asset landscape. Using a normative legal research method with statutory, conceptual, and comparative approaches, the findings reveal that Indonesia’s regulatory landscape remains fragmented and transitional. The absence of a unified and substantive legal framework, combined with institutional overlap and limited technological oversight capacity, undermines investor protection and market integrity. This paper recommends the formulation of a dedicated cryptocurrency law, the adoption of digital supervision mechanisms, and strengthened inter-agency coordination to build a coherent and future-proof legal regime. The novelty of this research lies in its critical examination of Indonesia’s regulatory transition and its proposal for a unified digital asset governance model. The study contributes to the growing body of scholarship on digital financial regulation in emerging markets and offers practical guidance for policymakers navigating the complexities of crypto-asset supervision.
This paper investigates the transformative impact of Financial Technology (FinTech) and Artificial Intelligence (AI) on the global financial sector, moving beyond a descriptive overview to crit-ically examine the challenges and opportunities they present. The study synthesizes a comprehen-sive review of empirical data, policy documents, and industry reports, including the EY Global FinTech Adoption Index (2023) and World Bank reports (2023), to analyze FinTech adoption across diverse re-gions and financial service categories. The research identifies key challenges related to electronic financial transactions, including cross-border complexities, decentralized systems, and cybersecurity risks. Furthermore, it addresses the crucial need for adaptable regulatory frameworks that balance innovation with financial stability and consumer protection. Findings reveal significant disparities in FinTech adoption globally, driven by factors such as technological infrastructure, regulatory environ-ments, and socio-economic conditions. The study highlights the potential systemic risks associated with FinTech investments and underscores the importance of international cooperation in addressing cross-border challenges. By providing a holistic perspective that integrates technological, economic, ethical, and regulatory dimensions, this paper contributes to a more nuanced understanding of the dynamic interplay between technology and finance. It offers actionable recommendations for policy-makers, industry practitioners, and academics seeking to foster responsible innovation and ensure the long-term resilience of the global financial system. Future research directions are proposed, including evaluating the effectiveness of different regulatory approaches, exploring the ethical dimensions of AI in finance, and conducting longitudinal studies to assess the long-term impacts of FinTech on financial stability and consumer welfare.
Blockchain technology is becoming an important tool for secure financial transactions. It supports decentralized finance (DeFi) services and new ways of auditing. This paper gives an overview of how blockchain is used in financial modeling, focusing on DeFi and auditing. We explain the basic technology behind popular blockchain systems, like public platforms such as Ethereum (with smart contracts and oracle networks), and private systems like Hyperledger Fabric. We also look at advanced methods like zero-knowledge proofs. We show how these tools help build financial models in DeFi by allowing peer-to-peer services without needing trust, and in auditing by making data more transparent and secure. We compare different blockchains in terms of speed, cost, and how well they scale. Security issues (like smart contract bugs or attacks on consensus) and practical problems (like trusting oracles and following laws) are also discussed. The review article looks at challenges in using blockchain and some of the latest solutions, such as Ethereum’s move to proof-of-stake, sharding for better scalability, and using zero-knowledge proofs for privacy. We also suggest future research topics, like connecting different blockchains, checking smart contracts with formal methods, creating better rules and laws, and training skilled workers. The goal is to help researchers and professionals understand the current situation and future of blockchain in finance and auditing.