The rapid advancement of blockchain technology presents new opportunities and challenges for the Islamic financial system, particularly in ensuring compliance with Shariah principles. As Islamic finance continues to grow, there is a pressing need to explore how digital innovations such as smart contracts can be integrated without violating core religious tenets. This study explores the potential application of smart contracts in Islamic finance, focusing on how blockchain technology can support transactions that comply with Shariah principles. Using a qualitative approach with triangulation methods, the research combines systematic literature review, in-depth interviews, and comparative analysis between smart contract frameworks and classical Shariah contracts such as murabaha, mudarabah, and ijarah. The study examines how smart contracts can enhance transparency, reduce operational costs, and minimize human error while ensuring adherence to Islamic legal and ethical standards. The findings indicate that blockchain-based smart contracts can effectively automate Islamic financial transactions when designed with proper attention to the prohibition of riba (interest) and gharar (uncertainty). The research highlights the need for close collaboration between Shariah scholars and technology developers to ensure compliance. This study suggests that smart contracts hold significant promise for increasing efficiency, trust, and transparency in the Islamic financial ecosystem
The acceleration of AI, FinTech, and decentralized finance (DeFi) based on AI and blockchain is transforming the international financial landscape, rewriting the rules of value, trust, and risk management. This work presents a critical, literature-informed review that integrates conceptual, experiential, econometric, simulation, and regulatory aspects of AI for financial transformation. While the literature on the topic yields consistent results, three key opportunities emerge: increased efficiency, broader financial access, and customer engagement. However, the review also highlights ongoing challenges, including regulatory uncertainty, cybersecurity risks, algorithmic bias, and the digital divide. By comparing the approaches across (as summarized in Table 1 below), the analysis finds that no single approach is adequate to capture the multi-dimensional potential of emerging technologies within finance. The conversation reflects the paradox of disruption, where innovation democratizes access while potentially, in the absence of strong governance and ethical frameworks, entrenching systemic frailties. The report suggests that the future of finance extends beyond adopting technology to also opening up avenues for institutions to be innovative while maintaining accountability, transparency, and inclusion. The limitations of the extant literature are recognized, and suggestions are provided for multi-method, cross-country, and longitudinal research to mitigate methodological fragmentation and advance knowledge on AI and finance.
DeFi or Decentralized Finance aims to automate and decentralize any form of traditional finance workflow done by a centralized institution. In this regard, cross border payments and transactions in SAP ERPs can be automated and secured using DeFi protocols. Thus, this study aims to design a payment interface that would fit into SAP ERP frameworks capable of meeting the low-cost, automated, and secure requirements for cross-border payment transactions. Traditionally, payments were made via SWIFT and SEPA. The proposed model intends to replace these with DeFi transactions handled through smart contracts, oracles, and payment middleware. Focusing on results, transaction latency, smart contract auditability, saved costs, and compliance assessments were measured for Ethereum, BNB Smart Chain, and Polygon. Real SAP Business Environment pilots showed over 60% decrease in processing cost while settlement speed increased by up to 90%. The model is designed to handle enterprise risk and compliance by incorporating robust KYC/AML governance, validation, and logging controls. A roadmap for the incorporation of DeFi into enterprise ERPs at a large scale for finance automation will serve as the study’s conclusion.
Decentralized Finance (DeFi) is a blockchain-based financial system that utilizes smart contracts to increase efficiency and transparency, while overcoming the limitations of conventional financial systems. In Indonesia, there is still little research on blockchain, especially on the DeFi, so investors have very little information. The lack of previous research on the DeFi in Indonesia creates a knowledge gap, given that the local DeFi market has unique characteristics influenced by investor preferences, evolving regulations, and specific levels of technology adoption. Cryptocurrency prices, including the DeFi, are influenced by public information that reflects market efficiency. For example, on October 10, 2020, the price of Yearn Finance (YFI) increased 36% following the rise in Bitcoin prices, demonstrating the link between information, transaction volume, and fluctuations in the DeFi market value. This research aims to identify the factors that influence the DeFi price changes, focusing on the influence of price liquidity and market efficiency. Using a quantitative approach, 65 DeFi coins were selected through purposive sampling, and analysis was carried out using multiple regression using EViews 13. The research results show that partially, price liquidity and market efficiency do not have a significant effect on the DeFi price changes. However, simultaneously, these two variables have a significant effect, with a contribution to price changes of 54.521%. The insignificance of the influence of market efficiency on the DeFi prices suggests that regulations focused on improving efficiency may not be enough to control price volatility or promote price stability in the DeFi ecosystem.
The rapid growth of cryptocurrencies and digital assets has created significant challenges for governments in regulating economic and business activities. Both Indonesia and India face similar issues concerning legal certainty, investor protection, and financial stability, yet they have adopted different regulatory approaches. This research aims to analyze and compare the regulatory frameworks governing cryptocurrencies and digital assets in Indonesia and India, using a comparative legal method that examines legislation, regulatory guidelines, and policies in both countries, supported by doctrinal interpretation and secondary literature. The findings reveal that Indonesia officially prohibits the use of cryptocurrencies as a means of payment but allows them to be traded as commodities under the supervision of the Commodity Futures Trading Regulatory Agency (Bappebti). In contrast, India has demonstrated a dynamic regulatory stance—initially imposing restrictions on cryptocurrency activities, later introducing a taxation framework, and currently considering the implementation of a central bank digital currency (CBDC). Despite these differences, both jurisdictions share the same fundamental objectives: to safeguard the financial system, prevent money laundering, and protect consumers. Indonesia’s approach emphasizes strict market controls and legal certainty through prohibitions on payment functions, while India’s model reflects regulatory fluidity and growing fiscal integration. This comparative analysis underscores the evolving nature of cryptocurrency governance in developing economies and highlights the need for balanced frameworks that promote innovation while maintaining financial stability and legal coherence.
Cryptocurrency is conceptualized as digital assets designed to function as mediums of exchange in Todays’ world. The objective of the study was to; evaluate the technological infrastructures and perception of Tanzanian consumers, as determinants to the adoption of cryptocurrencies in Tanzania’s commercial banks. The study employed a quantitative research design using surveys administered to 350 selected bank staff from ten commercial banks in Dar es Salaam and Dodoma. Data were collected through structured questionnaires and analyzed using descriptive and inferential statistical techniques. The findings indicate that both consumer perception and technological infrastructure significantly influence cryptocurrency adoption in Tanzania's commercial banks, with consumer perception having a more dominant impact. The study concludes that although banks possess strong infrastructure readiness, increasing public awareness and understanding is crucial to promoting wider adoption of cryptocurrency. Commercial banks are advised to invest in advanced and secure technological infrastructures to support the growing adoption and safe integration of cryptocurrencies. Future studies can adopt a mixed research approach, incorporating qualitative methods to gain deeper insights into the factors determining the adoption of cryptocurrencies in Tanzania's commercial banking sector.
This article proposes a hybrid framework that integrates technological and legal solutions to automate compliance and dispute resolution in international personal data transfers. The approach leverages smart contracts built on blockchain technology, incorporating standardized contractual clauses (SCC/MCC) and non-fungible tokens (NFTs) to trigger complaint procedures. By involving supervisory authorities as escrow agents, the system ensures transparency, efficiency, and regulatory compliance, thereby overcoming the limitations of traditional methods. Through comparative analysis and a case study, the article demonstrates the viability of a scalable and interoperable solution that enhances data subjects’ rights while aligning with the GDPR and other international regulatory frameworks.
M. M. Rakibul Hasan, Mohammod Abul Kashem, Md Mahedi Zaman Zaber, Farjana Akther Hima
Traditional fundraising methods often struggle with issues such as limited transparency, high intermediary costs, and inefficiencies in fund distribution, leading to donor mistrust and reduced participation. This paper introduces a secure, decentralized fundraising framework that leverages Ethereum based smart contracts, Web3 wallet integration, and IPFS for decentralized storage. The proposed system eliminates the need for intermediaries, enabling automated, tamper proof transactions and real time fund tracking. Key features include KYC based fundraiser verification, zero-knowledge proof (ZKP) for privacy, and zk rollup technology for improved scalability. Performance evaluations demonstrate low transaction latency, optimized gas consumption, and successful end to end integration with blockchain APIs. The system offers a practical alternative to conventional platforms by enhancing transparency, reducing operational costs, and ensuring accountable fund distribution. This framework has the potential to transform the future of charitable giving and crowdfunding through blockchain innovation.
The rapid emergence of decentralized finance (DeFi) has challenged traditional regulatory paradigms by eliminating central intermediaries and introducing borderless, autonomous financial transactions. As regulatory bodies struggle to enforce compliance in these fluid environments, current centralized RegTech solutions reveal inherent limitations in scalability, trust, and fault tolerance. This paper proposes a novel, real-time compliance verification framework using a decentralized multiagent system integrated with blockchain infrastructure. The system models regulatory rules using formal logic and distributes them across autonomous agents capable of real-time decisionmaking, trust-weighted consensus, and privacy-preserving validation through cryptographic techniques. Smart contracts ensure immutable auditability, while agent roles—validator, regulatory, and observer—coordinate seamlessly using FIPA-compliant communication protocols. Experimental evaluation demonstrates over 98 % compliance accuracy under normal conditions, sub200 ms verification latency, and resilience to agent dropouts and adversarial attacks. By removing single points of failure and enabling scalable, cross-jurisdictional rule enforcement, this framework offers a robust and transparent compliance solution for the next generation of decentralized financial systems. The approach sets a new benchmark in embedding regulatory intelligence within blockchain-based fintech, aligning technical scalability with legal accountability.
Current blockchain protocols (e.g., Proof-of-Work and Proof-of-Stake) secure the ledger yet cannot measure validator trustworthiness, allowing subtle misconduct that is especially damaging in decentralized-finance (DeFi) settings. We introduce Proof-of-Behavior (PoB), a consensus model that (i) gives each action a layered utility score -- covering motivation and outcome, (ii) adapts validator weights using recent scores, and (iii) applies decentralized verification with proportional slashing. The reward design is incentive-compatible, yielding a Nash equilibrium in which honest behavior maximizes long-run pay-offs. Simulated DeFi experiments (loan-fraud detection, reputation-weighted validation) show that PoB cuts fraud acceptance by more than 90%, demotes malicious validators within two rounds, and improves proposer fairness versus standard PoS, all with no more than a 5% throughput overhead. By linking consensus influence to verifiably trustworthy conduct, PoB offers a scalable, regulation-friendly foundation for secure and fair blockchain governance in financial applications.
The fast spread of Internet of Things (IoT) devices has created major difficulties to uphold data security and maintain its reliability and integrity for interconnected systems. Traditional centralized systems cannot protect electronic evidence sufficiently in zero-trust environments because they lead to evidence that becomes vulnerable to unauthorized tampering. Blockchain technology solves these issues effectively through decentralized data processing and unalterable databases that remain easily viewable to all users. The research investigates blockchain smart contracts as a solution to improve IoT electronic evidence reliability by implementing automated access verification and data integrity assessment and event activation. Automated smart contract technology establishes transparent data security through policy enforcement which happens without third-party organizations. The research demonstrates how blockchain technology and smart contracts assist different industries like healthcare facilities and supply chains and industrial Internet devices and smart cities to operate. This research describes the principal obstacles within the field like scalability problems together with resource constraints and legal complications while offering recommendations about possible future academic investigations. Through blockchain technology alongside smart contracts this research develops a framework which enhances the reliability and security of IoT electronic evidence while benefiting IoT ecosystem reliability and safety.
Cryptocurrency has transitioned from a cryptographic curiosity to a transformative force in the global economy. Rooted in blockchain technology, it has catalysed financial innovation, disrupted traditional monetary systems, and spurred new economic paradigms like decentralized finance (DeFi). This paper explores the fundamentals of crypto currency, critically evaluates its technological underpinnings, and traces its evolution over time. Furthermore, it examines the macroeconomic implications of large-scale adoption, including monetary policy challenges, regulatory dilemmas, and the shifting structure of global finance. Through a multidisciplinary lens combining technology, economics, and policy analysis, this paper contributes to a deeper understanding of crypto currency's complex role in shaping the digital economy.
Yosua Pepris Karbeka, Umbu Lily Pekuwali, Detji K. E. R. Nuban
The Blockchain Ombudsman of the Republic of Indonesia is an independent state institution established by post-reform legislation as a public service supervisor for decentralized systems. It holds immunity rights, shielding it from arrest, detention, interrogation, prosecution, or litigation. In practice, however, the Blockchain Ombudsman faces lawsuits from the public in court. This undermines legal certainty and disrupts the separation of powers in Indonesia’s digital governance. This study employs normative legal research with statutory, historical, and conceptual approaches. Findings reveal that the Blockchain Ombudsman emerged in Indonesia to protect user rights and address the need for power separation in modern blockchain-based governance. Its immunity rights originate from universal Ombudsman practices codified in law but require tailored regulatory frameworks. The execution of the Blockchain Ombudsman’s functions, duties, and authorities is intrinsically linked to functional immunity. Consequently, it cannot be sued or reported to other enforcement entities (e.g., regulatory agencies or decentralized autonomous organizations). Objections to maladministration audit outcomes may be raised internally via complaint mechanisms or externally by contesting the underlying issue in court.
Komang Sutriani, Johannes Ibrahim Kosasih, I Made Aditya Mantara Putra
Rapid advances in information technology have fuelled the emergence of digital currencies such as Bitcoin as an increasingly popular means of transaction in Indonesia. However, behind the convenience and speed offered, the use of Bitcoin also poses a high risk of fraud in online transactions. The main objective of this research is to analyse the nature of legal protection for Bitcoin users in Indonesia. This research applies normative juridical method with statutory approach, conceptual approach, case study analysis, and refers to legal protection theory, online transaction theory, and legal economic theory. One of the case studies studied is the High Court Decision 1240/Pid.Sus/2022/PN Tng which reflects the existence of a vacuum and vagueness of legal norms in the protection of Bitcoin users. The analysis shows that although Bitcoin has been regulated under the legal framework of digital asset trading, there are still inefficiencies in the application of legal protection in a comprehensive and effective manner. This research emphasises the need for more progressive regulatory reforms, as well as strengthening the role of law enforcement agencies and financial technology supervisors to ensure fair, certain and comprehensive protection for Bitcoin users in the territory of Indonesia. It is hoped that the results of this research can strengthen theoretical contributions in enriching the development of digital economy law and become a practical reference for policy makers.
The primary focus of this study is to monitor significant changes compared to the author's previous articles, with the objective of identifying alterations in the legality of cryptocurrency; the extent of its volatility; its profitability; and its use as a medium of exchange. The author asserts that, in 2025, the legality of cryptocurrencies underwent significant changes on a global scale. The regulatory approach to digital assets varies across nations, with some adopting a regulatory framework that encompasses these assets, while others have opted for a prohibitionist stance. The profitability of mining has been observed to decrease in consequence of rising time and energy costs, whilst the volatility index has been noted to decrease due to the entry of institutional investors and the adoption of merchant strategies. In summary, the profitability of crypto asset acquisition has reached a state of maturity. The focus has shifted from the initial hype to the development of effective strategies, the optimal timing of transactions, and the conducting of thorough research.
The integration of blockchain technology introduced smart contracts, which revolutionized the automation and security of executing transactions. This article focuses on using smart contracts to manage information service subscriptions where reliability, transparency, and efficiency are required. Subscription management suffers from payment delays, trust issues, errors, and many other problems. Through automation and smart contracts, the self-executing nature of these agreements helps organizations streamline subscriptions, enforce terms with less risk, and greatly reduce operational blunders. Blunders. In this paper, I thoroughly review smart contracts, explore current gaps within subscription management, and explain how integrating blockchain can fill them. Some successful implementations are presented as case studies. Others discuss technical and organizational hurdles for practical adoption. Future scope widens by providing insight into blockchain-based decentralized solutions' role in contemporary subscription-centered business models. The research ends by recommending information service providers adopt smart contracts for better operational efficiency, reduced costs, and stronger customer relations.
Blockchain and smart contracts are transforming transactions in healthcare by enabling automation, transparency, security, and decentralization. Smart contracts, self-executing agreements encoded with specific terms, are utilized to streamline many processes, including patient data management and complex financial transactions within the healthcare industry. This chapter explores how smart contracts can change healthcare transactions and examines their advantages, such as addressing one of the major concerns with administrative overhead and reducing fraud. This chapter offers a broad overview of healthcare transactions on blockchain, explaining security vulnerabilities including gas transaction fee attacks, transaction replay attacks, front-running attacks, weaknesses in blockchain protocol, and phishing risks. It provides an overview of creating smart contract platforms discussing their roles in providing automation, transparency, and higher security. It also discusses how interoperability between healthcare applications enhances the feature efficiency of healthcare applications. The chapter concludes with potential future directions of smart contracts in the healthcare sector. This chapter ultimately shows that smart contracts are the future of healthcare in terms of improving efficiency, lowering costs, and creating decentralized data management that is secure.
Smart contracts are a crucial component of blockchain systems, enabling high programmability and trusted transactions without the need for third parties. Their extensive implementation has significantly enhanced transparency and transactional efficiency in blockchain ecosystems. However, this advancement has also raised considerable concerns about vulnerabilities in smart contracts, which may lead to the hacking of blockchain applications, resulting in significant financial losses. This study suggests a traditional approach using Python regular expressions alongside the CodeBert deep learning model for smart contract vulnerability detection. Additionally, it compares the results of both approaches based on the number of instances. CodeBert emerges as an efficient deep learning model by detecting around 90.1 % of smart contract vulnerabilities.
Ilham Ardhiyansyah, Ahmad Furqon, Mashilal Mashilal
Zakat is a fundamental component of Islamic social finance, intended to reduce inequality and strengthen community welfare. However, traditional zakat systems face recurring issues, including inefficiency, lack of transparency, and low public trust. This study aims to optimize zakat management using Ethereum blockchain technology, particularly the Layer 2 (Base) network, with a focus on its impact on cost efficiency and system transparency. Using a qualitative-descriptive approach, the research designs and simulates a blockchain-based zakat distribution model that incorporates smart contracts for automated fund allocation to eight categories of ashnaf, along with off-chain verification for Sharia compliance. A simulation of USDC 1,000 zakat fund distribution demonstrates that the blockchain system ensures accurate, traceable, and tamper-proof transactions, while reducing transaction costs by over 98% compared to conventional methods. Smart contracts automate the disbursement process, while all transaction records are stored on a public ledger, which supports real-time auditing and enhances institutional accountability. These results demonstrate that the integration of blockchain technology not only improves operational efficiency and transparency but also supports Islamic legal and ethical governance. In conclusion, this model provides a practical and scalable framework for modernizing zakat management with a strong emphasis on cost efficiency, public trust, and Sharia compliance.
Purpose Cryptocurrency’s novelty and volatility—combined with the absence of standardized reporting prior to 2023—created an opaque information environment. This study explores whether such conditions enabled assertive impression management in corporate reporting. We examine how firms not only varied the volume of cryptocurrency disclosures over time, but also strategically manipulated their readability . Additionally, we use this context to demonstrate the utility of machine learning and natural language processing tools for consistent analysis of complex financial narratives. Study design We analyze full-text annual reports, MD&A sections, and proxy statements from five publicly traded U.S. firms with diverse cryptocurrency involvements. Our methodology includes machine learning-based topic modeling, readability assessment using standardized indices, and visualization tools. Findings (i) Information Demand: Google search trends for target firms are strongly associated with Bitcoin price movements, reflecting external attention cycles. (ii) Impression Management: Firms increase both the frequency and readability of crypto disclosures in favorable markets and reduce or obscure them in downturns, consistent with strategic impression management. (iii) Readability: Crypto-related disclosures are significantly more readable than non-crypto sections from the same reports suggesting deliberate simplification. Contributions This study advances the limited literature on cryptocurrency disclosure by offering a textual and behavioral lens on corporate impression management. A key contribution is the integration of readability metrics, public attention signals, and NLP tools into disclosure analysis. We highlight how firms use both narrative framing and readability engineering as tools to influence perception—especially in periods of regulatory uncertainty. Implications Our findings have direct implications for policy and practice: (i) Policymakers should consider not only disclosure quantity but also its linguistic clarity and comparability, especially for volatile assets. (ii) Investors and analysts can use automated text analysis to detect subtle impression management tactics and to interpret the strategic use of clarity in disclosure narratives.
Jun 25, 2025·2025 IEEE/ACIS 29th International Conference on Software Engineering, Artificial Intelligence, Networking and Parallel/Distributed Computing (SNPD)
Yuma Kawachi, Ion Yamauchi, Yukihiro Shintani, Toru Takagi
In today's rapidly evolving digital business landscape, Decentralized Autonomous Organizations (DAOs), leveraging Web3 technologies such as blockchain, offer innovative governance structures characterized by transparency and fairness. Despite these advantages, DAOs face significant challenges, including low participant engagement and inefficiencies in collective decision-making. To address these issues, this research explores the integration of gamification— an information science-based method—into DAO governance frameworks. Specifically, a quantitative survey was conducted among DAO participants to analyze motivational factors influencing their engagement in decision-making. Based on survey findings, four gamification mechanisms were empirically tested: physical rewards, quest settings, visualization of positive evaluations, and skill-improvement feedback. Results indicated that physical rewards significantly increased voting speed, while visualization of positive evaluations enhanced communication and active collaboration among participants. Conversely, the quest settings and skill-improvement visualization showed limited effectiveness due to operational complexity and misalignment with organizational goals. Overall, the findings offer practical insights into applying survey-based information system analysis to enhance business decision-making in Web3-based decentralized organizations.