Search Results (45)

Digital payment and settlement markets operate as interconnected financial systems shaped by institutional, technological, and capability-based elements. This study examines how digital transformation and digital financial inclusion interact within this system to influence Sustainable Digital Payment and Settlement Market Performance (SDPSMP), with DeFi adoption capability acting as a structural translation mechanism and AI and big data analytics functioning as adaptive enablers. Integrating the Resource-Based View and Diffusion of Innovation, the study explains why technology diffusion does not consistently produce stable market-level outcomes. Cross-sectional data were collected from 422 professionals in Saudi financial institutions engaged in payment, settlement, and FinTech functions. A dual-stage SEM–ANN approach was employed, using PLS-SEM to test direct, mediating, and moderating effects and Artificial Neural Networks (ANN) to capture nonlinear predictive patterns. Results show that digital transformation and digital financial inclusion enhance DeFi adoption capability and directly improve SDPSMP. DeFi capability partially mediates both relationships. Analytics capability strengthens the effects of inclusion and DeFi capability on system performance but does not moderate the transformation–performance link. ANN findings identify analytics capability and financial inclusion as dominant predictors. The study advances understanding of digital payment markets as complex adaptive systems and provides evidence on how coordinated capability development supports long-term resilience and structural stability. Full article

This article examines blockchain as an enabling technological component for data management tasks that are independent of currency-related functionality, a less-discussed aspect of a technology commonly associated with cryptocurrencies and decentralized finance (DeFi). Drawing on empirical findings from the DIGI4ECO project as a case study, we present a structured literature review and cross-domain analysis of blockchain-based data management systems (BDMSs), examine a representative permissioned BDMS implementation, and synthesize practical design guidelines and implementation insights for BDMS development. This perspective is motivated by core blockchain properties such as immutability and transparency, as well as by the observation that existing resources for BDMS development, including methods, tools, and best practices, remain fragmented and less developed than those available for more mature technologies. Full article

Decentralized finance (DeFi) has been studied mainly as a financial and technological system, while the role of digital entrepreneurial capability in shaping sustainable user traction remains underexplored. This study repositions DeFi as a digitally mediated entrepreneurial ecosystem and examines whether retention-oriented user behavior is associated with three capability dimensions—entrepreneurial visibility, network embeddedness, and organic acquisition efficiency—together with ecosystem-finance conditions such as total value locked and decentralized-exchange activity. Using an exploratory, correlational design with monthly aggregated data from five incumbent DeFi platforms during the post-FTX recovery period (October 2022–September 2023), the analysis combines canonical correlation analysis, partial least squares regression, and ridge regression. Results indicate a significant multivariate association between ecosystem-finance conditions and the entrepreneurial-capability block, and show that returning-visitor behavior is more coherently linked to the predictor set than broad visitor inflow. Entrepreneurial Visibility Capital and Network Embeddedness emerge as the most stable positive correlates of user retention, while Organic Acquisition Efficiency shows a directionally mixed pattern. Because the sample is small, the findings are interpreted as preliminary evidence rather than confirmatory claims. Overall, the study offers an integrative framework that connects DeFi, digital entrepreneurship, and sustainability-oriented business-model research, and identifies the joint configuration of digital capability and financial conditions as a promising direction for future, larger-scale investigation. Full article

The rapid convergence of the Internet of Things (IoT) and decentralized finance (DeFi) is reshaping the digital economy by enabling autonomous, trustless, and value-driven interactions among connected devices. This paper provides a comprehensive survey of the emerging paradigm that combines IoT’s pervasive sensing and communication capabilities with DeFi’s programmable financial infrastructure. We first discuss the motivation behind this convergence and explore key opportunities, including autonomous machine-to-machine (M2M) payments, decentralized data marketplaces, and trustless IoT service provisioning. Despite its potential, IoT–DeFi integration introduces significant security and privacy challenges related to smart contract vulnerabilities, consensus protocol risks, oracle manipulation, and constrained device capabilities. We review existing mitigation approaches such as lightweight cryptography, secure contract design, and decentralized identity management, and critically assess their limitations in heterogeneous, resource-limited environments. Building on this analysis, identify research gaps and propose future directions emphasizing formal verification of IoT-integrated smart contracts, robust oracle design, interoperability frameworks, and privacy-preserving trust models. This survey systematically maps opportunities, threats, and open issues. In doing so, it guides researchers and practitioners toward building secure, scalable, and energy-efficient IoT–DeFi ecosystems for next-generation decentralized applications. Full article

This study investigates the impact of sustainability-related uncertainty (SRU)—captured via the Sustainability-related Uncertainty Index in equal-weighted (ESGUI_EQ) and GDP-weighted (ESGUI_GDP) forms—on the volatility of green financial assets, focusing on decentralized finance (DeFi) protocols and Environmental, Social, and Governance (ESG)-focused Exchange-Traded Funds (ETFs). Employing a fuzzy logic framework, complemented by 3D surface visualization, Rule Viewer analysis, diagnostic validation, and Granger causality tests, the study uncovers non-linear, asymmetric, and time-varying responses of these assets to sustainability ambiguity. Empirical results reveal a structural divergence: DeFi protocols amplify volatility due to fragmented governance, speculative investor behavior, and sensitivity to policy-driven signals, often exhibiting bidirectional predictive feedback with SRU, whereas ESG ETFs maintain stability through diversification, regulatory oversight, and rigorous ESG screening, primarily absorbing sustainability shocks. These findings extend sustainable finance theory by integrating governance, technology, and policy dimensions, and illustrate the value of fuzzy logic combined with Granger causality in modeling complex, ambiguous markets. From a practical standpoint, the study provides actionable guidance for investors, fund managers, and policymakers, emphasizing the importance of technology-informed governance, standardized ESG disclosures, regulatory sandboxes, and continuous monitoring of SRU. Full article

Background: Blockchain technology has emerged as a transformative communication solution for securing distributed systems. However, several vulnerabilities exist during transactions, including latency and network congestion issues during mempool processing, topology weaknesses, cross-chain bridge exploits, and cryptographic weaknesses. These vulnerabilities have led to attacks that have threatened system integrity, including Block Extractable Value (BEV) attacks, Maximal Extractable Value (MEV) attacks, sandwich attacks, liquidation, and Decentralized Finance (DeFi) reordering attacks, among others. Thus, implementing a robust security framework based on the Confidentiality, Integrity, and Availability (CIA) triad remains critical for addressing modern blockchain technology threats. Objective: This paper examines blockchain technology, its various vulnerabilities, and attacks to determine how criminals exploit the system during transactions. Further, it evaluates its impact on users. Then, implement a blockchain attack in a “MasterChain” virtual environment to demonstrate how vulnerable spots can be practically exploited and discuss the application of the CIA security triad through modern cryptographic primitives. Methods: The approach considers Hevner’s design science framework, which emphasizes creating innovative artifacts that address identified problems while contributing to the knowledge base through rigorous evaluation. Furthermore, we developed a MasterChain tool using Python with Flask for distributed node communication, utilizing the Elliptic Curve Digital Signature Algorithm (ECDSA) with the Standards for Efficient Cryptography Prime 256-bit Koblitz curve 1 (secp256k1) for digital signatures and Secure Hash Algorithm 3 (SHA-3) (Keccak-256) hashing for block integrity. Results: show how the CIA has been implemented to provide secure communication through ECDSA-based transactions, SHA-3 chain integrity verification, and a multi-node distributed architecture, respectively. The performance analysis shows that ECDSA provides 256-bit security with 64-byte signatures compared to 2048-bit Rivest–Shamir–Adleman (RSA)’s 256-byte signatures, achieving a 75% reduction in bandwidth overhead. SHA-3 provides immunity to length extension attacks while maintaining equivalent collision resistance to SHA-256. Conclusions: The MasterChain framework provides a practical foundation for implementing blockchain security that addresses both classical and emerging vulnerabilities. The adoption of ECDSA and SHA-3 (Keccak-256) positions the system favourably for modern blockchain applications, while providing insights into the cryptographic trade-offs between performance, security, and compatibility. Full article

(1) Background: The convergence of Big Data and the Internet of Things (IoT) is transforming digital accounting from retrospective documentation into real-time operational intelligence. This systematic review examines how Industry 4.0 technologies—artificial intelligence (AI), blockchain, edge computing, and digital twins—transform accounting practices through intelligent automation, continuous compliance, and predictive decision support. (2) Methods: The study synthesizes 176 peer-reviewed sources (2015–2025) selected using explicit inclusion criteria emphasizing empirical evidence. Thematic analysis across seven domains—conceptual foundations, system evolution, financial reporting, fraud detection, audit transformation, implementation challenges, and emerging technologies—employs systematic bias-reduction mechanisms to develop evidence-based theoretical propositions. (3) Results: Key findings document fraud detection accuracy improvements from 65–75% (rule-based) to 85–92% (machine learning), audit cycle reductions of 40–60% with coverage expansion from 5–10% sampling to 100% population analysis, and reconciliation effort decreases of 70–80% through triple-entry blockchain systems. Edge computing reduces processing latency by 40–75%, enabling compliance response within hours versus 24–72 h. Four propositions are established with empirical support: IoT-enabled reporting superiority (15–25% error reduction), AI-blockchain fraud detection advantage (60–70% loss reduction), edge computing compliance responsiveness (55–75% improvement), and GDPR-blockchain adoption barriers (67% of European institutions affected). Persistent challenges include cybersecurity threats (300% incident increase, $5.9 million average breach cost), workforce deficits (70–80% insufficient training), and implementation costs ($100,000–$1,000,000). (4) Conclusions: The research contributes a four-layer technology architecture and challenge-mitigation framework bridging technical capabilities with regulatory requirements. Future research must address quantum computing applications (5–10 years), decentralized finance accounting standards (2–5 years), digital twins with 30–40% forecast improvement potential (3–7 years), and ESG analytics frameworks (1–3 years). The findings demonstrate accounting’s fundamental transformation from historical record-keeping to predictive decision support. Full article

Decentralized Finance (DeFi) has become a major component of digital asset markets, yet accurately valuing protocol performance remains difficult due to high volatility, nonlinear pricing dynamics, and persistent disclosure gaps that amplify valuation risk. This study develops an Optuna-tuned Super Learner stacked ensemble to improve risk-aware DeFi valuation, combining Extremely Randomized Trees (ETs), Support Vector Regression (SVR), and Categorical Boosting (CAT) as heterogeneous base learners, with a K-Nearest Neighbors (KNNs) meta-learner integrating their forecasts. Using an expanding-window panel time-series cross-validation design, the framework achieves significantly higher predictive accuracy than individual models, benchmark ensembles, and econometric baselines, obtaining RMSE = 0.085, MAE = 0.065, and R² = 0.97—representing a 25–36% reduction in valuation error. Wilcoxon tests confirm that these gains are statistically significant (p < 0.01). SHAP-based interpretability analysis identifies Gross Merchandise Volume (GMV) as the primary valuation determinant, followed by Total Value Locked (TVL) and key protocol design features such as Decentralized Exchange (DEX) classification, while revenue variables and inflation contribute secondary effects. The findings demonstrate how explainable ensemble learning can strengthen valuation accuracy, reduce information-driven uncertainty, and support risk-informed decision-making for investors, analysts, developers, and policymakers operating within rapidly evolving blockchain-based digital asset environments. Full article

The rising usage of IoT devices in everyday life has formed smart cities that require the adoption of decentralized systems for a secure and transparent mechanism to manage asset exchange across automotive supply chains. Several existing Blockchain-based models built on public chains focus on traceability while overlooking scalability limits, transaction fees, conditional payment trust, or real-time delivery validation. We introduce DeFiTrustChain, a DeFi-enabled framework that combines free NFTs, escrow-based automation, and IoT verification within a Hyperledger Fabric network. It represents each vehicle using a unique NFT to capture the details of manufacturing and ownership, along with immutable asset verification. The payment release between stakeholders is governed by a dedicated escrow contract responsible for IoT-based delivery confirmation. The proposed framework ensures authenticated access and prevents identity misuse through integration of the Fabric Certificate Authority. The experimental results demonstrate the coherent and dependable execution of NFT creation, escrow enforcement, and IoT-triggered validation, with low local transaction processing time and consistent behavior across peers. Full article

Blockchain-based financial ecosystems generate unprecedented volumes of multi-temporal data streams requiring sophisticated analytical frameworks that leverage both on-chain transaction patterns and off-chain market microstructure dynamics. This study presents an empirical evaluation of a two-class confidence-threshold framework for cryptocurrency direction prediction, systematically integrating macro momentum indicators with microstructure dynamics through unified feature engineering. Building on established selective classification principles, the framework separates directional prediction from execution decisions through confidence-based thresholds, enabling explicit optimization of precision–recall trade-offs for decentralized financial applications. Unlike traditional three-class approaches that simultaneously learn direction and execution timing, our framework uses post-hoc confidence thresholds to separate these decisions. This enables systematic optimization of the accuracy-coverage trade-off for blockchain-integrated trading systems. We conduct comprehensive experiments across 11 major cryptocurrency pairs representing diverse blockchain protocols, evaluating prediction horizons from 10 to 600 min, deadband thresholds from 2 to 20 basis points, and confidence levels of 0.6 and 0.8. The experimental design employs rigorous temporal validation with symbol-wise splitting to prevent data leakage while maintaining realistic conditions for blockchain-integrated trading systems. High confidence regimes achieve peak profits of 167.64 basis points per trade with directional accuracies of 82–95% on executed trades, suggesting potential applicability for automated decentralized finance (DeFi) protocols and smart contract-based trading strategies on similar liquid cryptocurrency pairs. The systematic parameter optimization reveals fundamental trade-offs between trading frequency and signal quality in blockchain financial ecosystems, with high confidence strategies reducing median coverage while substantially improving per-trade profitability suitable for gas-optimized on-chain execution. Full article

Permissionless blockchains have evolved beyond cryptocurrency into foundations for Web3 applications, decentralized finance (DeFi), and digital asset ownership, yet this rapid expansion has intensified privacy vulnerabilities. This study provides a comprehensive review of recent trends, emerging privacy threats, and mitigation strategies in permissionless blockchain ecosystems. We examine six developments reshaping the landscape: meme coin proliferation on high-throughput networks, real-world asset tokenization linking on-chain activity to regulated identities, perpetual derivatives exposing trading strategies, institutional adoption concentrating holdings under regulatory oversight, prediction markets creating permanent records of beliefs, and blockchain–AI integration enabling both privacy-preserving analytics and advanced deanonymization. Through this work and forensic analysis of documented incidents, we analyze seven critical privacy threats grounded in verifiable 2024–2025 transaction data: dust attacks, private key management failures, transaction linking, remote procedure call exposure, maximal extractable value extraction, signature hijacking, and smart contract vulnerabilities. Blockchain exploits reached $2.36 billion in 2024 and $2.47 billion in the first half of 2025, with over 80% attributed to compromised private keys and signature vulnerabilities. We evaluate privacy-enhancing technologies, including zero-knowledge proofs, ring signatures, and stealth addresses, identifying the gap between academic proposals and production deployment. We further propose a Secure Development Lifecycle framework incorporating measurable security controls validated against incident data. This work bridges the disconnect between privacy research and industrial practice by synthesizing current trends, providing insights, documenting real-world threats with forensic evidence, and providing actionable insights for both researchers advancing privacy-preserving techniques and developers building secure blockchain applications. Full article

The constant evolution of Decentralized Finance (DeFi) calls for the continuous monitoring of its developments and implications through a critical review of the academic literature. While DeFi holds promise for enhancing economic activity by expanding market access for enterprises and promoting financial inclusion, concerns remain that digital assets are primarily used for speculative purposes rather than for financing the real economy. This study employs bibliometric methods to investigate whether and how the current academic literature addresses the potential influence of DeFi on real economic dynamics. Employing bibliometric methods—including co-citation, bibliographic coupling, and keyword co-occurrence analyses—focused on DeFi-related publications in the Economics and Business subject areas within the Scopus database, the study maps the knowledge base, author networks, and thematic trends and their temporal evolution, supporting regulators, researchers, and practitioners. The findings reveal that the integration of DeFi with the real economy has received limited attention in scholarly research. This highlights the need for further investigation into DeFi’s implications for financial stability, productive investment, and long-term economic growth. Full article

Blockchain technologies have profoundly transformed information systems by providing decentralized infrastructures that enhance transparency, security, and traceability. Ethereum, in particular, supports smart contracts and facilitates the development of decentralized finance (DeFi), non-fungible tokens (NFTs), and Web3 applications. However, its openness also enables illicit activities, including fraud and money laundering, through anonymous wallets. Identifying wallets involved in large transfers or abnormal transactional patterns is therefore critical to ecosystem security. This study proposes an AI-based framework employing XGBoost, LightGBM, and CatBoost to detect suspicious Ethereum wallets, achieving test accuracies between 95.83% and 96.46%. The system provides near real-time predictions for individual or recent wallet addresses using a pre-trained XGBoost model. To improve interpretability, SHAP (SHapley Additive exPlanations) visualizations are integrated, highlighting the contribution of each feature. The results demonstrate the effectiveness of AI-driven methods in monitoring and securing Ethereum transactions against fraudulent activities. Full article

Maximal Extractable Value (MEV) presents a significant challenge to the fairness and efficiency of decentralized finance (DeFi). This paper provides a game-theoretic analysis of the strategic interactions within the MEV supply chain, involving searchers, builders, and validators. A three-stage game of incomplete information is developed to model these interactions. The analysis derives the Perfect Bayesian Nash Equilibria for primary MEV attack vectors, such as sandwich attacks, and formally characterizes attacker behavior. The research demonstrates that the competitive dynamics of the current MEV market are best described as Bertrand-style competition, which compels rational actors to engage in aggressive extraction that reduces overall system welfare in a prisoner’s dilemma-like outcome. To address these issues, the paper proposes and evaluates mechanism design solutions, including commit–reveal schemes and threshold encryption. The potential of these solutions to mitigate harmful MEV is quantified. Theoretical models are validated against on-chain data from the Ethereum blockchain, showing a close alignment between theoretical predictions and empirically observed market behavior. Full article

The FTX collapse marked a significant shock to global crypto markets, prompting concerns about systemic contagion. This paper investigates the dynamic connectedness between cryptocurrencies, DeFi tokens, and tech stocks, focusing on the systemic impact of the FTX collapse. We decompose total, internal, and external connectedness across asset groups using a time-varying parameter VAR model. The results show that post-FTX, Bitcoin and Ethereum intensified their roles as core shock transmitters, while Tether consistently acted as a volatility absorber. DeFi tokens exhibited heightened intra-group spillovers and occasional external influence, reflecting structural fragility. Tech stocks remained largely insulated, with reduced cross-market linkages. Network visualizations confirm a post-crisis fragmentation, characterized by denser internal crypto-DeFi ties and weaker inter-group contagion. These findings have important policy implications for regulators, investors, and system designers, indicating the need for targeted risk monitoring and governance within decentralized finance. Full article