Smart Contracts in Financial Services: Risk Assessment and Compliance

Authors

  • Balraj Adhana Independent Researcher, IEEE, ACM Member, NJ, USA. Author

DOI:

https://doi.org/10.63282/3050-922X.AECTIC-103

Keywords:

Smart Contracts, Distributed Ledger Technology (DLT), Compliance Automation, Deterministic Execution, Risk Management, Hyperledger Fabric, Ethereum Layer-1/Layer-2, Corda, Regulatory Technology (RegTech), Throughput and Latency Modeling, Compliance-Verifiable Execution Model (C-VEM), Financial Market Infrastructure (FMI)

Abstract

Smart contracts deployed on distributed ledgers introduce new paradigms of automation, trust, and determinism within financial services. This enhanced paper adds technical depth, charts, algorithms, and formal models, including a Compliance-Verifiable Execution Model (C‑VEM) and proofs for deterministic security behavior.

References

[1] G. Wood, 'Ethereum: A Secure Decentralised Generalised Transaction Ledger,' 2014.

[2] N. Szabo, 'Formalizing and Securing Relationships on Public Networks,' First Monday, 1997.

[3] A. Wright, P. De Filippi, 'Blockchain and the Law,' Harvard University Press, 2018.

[4] ESMA, 'DLT in Financial Markets,' 2023.

[5] Hyperledger Foundation, 'Smart Contract Security Best Practices,' 2023.Applied Studies, 2013.

Downloads

Published

2025-11-28

Issue

Conference/Proceedings - AECTIC’2025

Section

Articles

How to Cite

1.
Adhana B. Smart Contracts in Financial Services: Risk Assessment and Compliance. IJERET [Internet]. 2025 Nov. 28 [cited 2026 Apr. 27];:13-6. Available from: https://ijeret.org/index.php/ijeret/article/view/366