Approaches to Employing Smart Contracts in the Digital Currency Market

Document Type : Original Article

Authors
Fatemeh Kamalinezhad 1
Ali Kalantari 2
Yegane Kharat 1
Mehran Bahram arjavand 2
1 Undergraduate Student of Business Management, Sari Branch, Islamic Azad University, Sari, Iran.
2 Undergraduate Student of Financial Management, Sari Branch, Islamic Azad University, Sari, Iran.
10.22034/jmek.2024.154707
Abstract
With the rapid and continuous development of cryptocurrencies and advanced blockchain technologies, leading platforms such as Ethereum and Hyperledger have provided the necessary and robust infrastructure to support and execute various smart contracts. This technology, as an automated and enforceable agreement, is rapidly expanding and has successfully found diverse real-world applications, including crowdfunding, financial services, prediction markets, and the Internet of Things. Despite this remarkable growth, numerous critical challenges such as security vulnerabilities, privacy issues, and developmental limitations remain fundamental and significant barriers to widespread adoption. The main objective of this research is to provide a comprehensive and systematic review of blockchain-based smart contracts and to clearly clarify their exact core concept. In this regard, while examining the theoretical foundations, operational mechanisms, and various host platforms, we deeply explore applied scenarios and the challenges faced by developers. The findings of this exploratory study indicate that although smart contracts have high potential in eliminating intermediaries, reducing transaction costs, and automating complex financial and social processes, the lack of powerful debugging tools, programming language limitations, and vulnerabilities such as reentrancy and transaction-ordering dependence require special and urgent attention from researchers. Finally, by outlining future trends, this comprehensive article proposes novel and innovative pathways to enhance security, scalability, and privacy preservation within cyber-physical-social systems.
Keywords
Smart Contract
Blockchain
Cryptocurrency
Security Challenges
Internet of Things.
Subjects
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  • Receive Date 18 October 2023
  • Revise Date 02 January 2024
  • Accept Date 10 March 2024