SCAT-Final block chain detection .pdf

National Education Society®
Jawaharlal Nehru New College of Engineering
Department of Computer Science and Engineering
ATechnical Seminar Presentation
On
“Smart Contract Automation Trust Through Blockchain”
Presented By
DIVYA S B 4JN21CS048
Visvesvaraya Technological University Belagavi,
Karnataka
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Under the Guidance of :
Mr. Vedananda D E B.E., M.Tech.
Asst. Professor, Dept. of CS&E
JNNCE, Shivamogga
Coordinator :
Dr. Narendra Kumar S B.E., M.Tech., Ph.D
Asst. Professor, Dept. of CS&E
JNNCE, Shivamogga

Smart contract automation revolutionizes how agreements are
executed, leveraging blockchain technology to enhance trust,
transparency, and efficiency across various industries.
Smart Contract
Automation

Introduction to Smart Contracts
Increases trust with secured
and transparent agreements.
Benefits of Automation
Smart contracts are self-executing contracts with the terms of the agreement directly written into
code, enabling automatic enforcement and execution once predefined conditions are met.
Self-executing contracts
written in code.
Importance in Modern
Business
What Are Smart
Contracts?
Reduces reliance on
intermediaries and errors.

Enabling Smart Contracts
Understanding Blockchain
Technology
Immutability and consensus mechanisms.
Decentralized ledger that securely records transactions.
Blockchain provides the foundation for secure, automated, and
self-executing contracts without intermediaries.
Key Features
Definition of Blockchain

Once data is recorded on the
blockchain, it cannot be changed,
ensuring that contract terms remain
intact and verifiable.
Immutability
Decentralization Consensus Mechanisms
Trust Mechanisms in Blockchain
By distributing data across a
network, blockchain prevents
centralized control and reduces the
risk of fraud or manipulation.
Trust Mechanisms in Blockchain
Mechanisms such as Proof of Work
and Proof of Stake validate
transactions, ensuring that all
parties agree to the state of the
blockchain.

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Looking ahead, advancements like AI-driven smart contracts and
improved legislative frameworks will augment their functionality and
acceptance.
Increasing adoption across sectors such as finance, supply chain, and
real estate has made smart contracts a pivotal technology for business
automation.
Future Directions
Evolution of Smart Contracts
The concept of smart contracts was first introduced by Nick Szabo in
1994, but real-world applications emerged with Ethereum's launch in
2015.
Historical Context
Growth Trends

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Blockchain Integration
Digital Code
Records are visible on the blockchain, ensuring
accountability.
Transparency and Security
Contracts execute automatically when conditions are
met.
Key Components of Smart Contracts
Automated Execution
Smart contracts are innovative tools that revolutionize traditional contract practices.
Smart contracts are self-executing programs detailing
the terms.
Stored on the blockchain for security and permanence.

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Automation
Workflow
All outputs and
transactions are
permanently recorded
on the blockchain.
Permanence
Creation
Contracts
automatically execute
actions once
conditions are met.
Smart Contract Automation Process
Predefined conditions
dictate how and when
contracts execute.
Smart contracts are
coded and deployed
onto the blockchain.
Condition Setting

Insurance
Services
Applications of Smart Contracts
Real Estate
Transactions
Supply Chain
Management
Finance
Automates
claims
processing,
validating claims
instantaneously.
Facilitates
automated
lending,
borrowing, and
trading without
intermediaries.
Enhances
transparency and
traceability,
automating
inventory
management and
payments.
Securely
manages medical
records and
patient consent,
automating
processes.
Streamlines
property
transactions,
reducing closing
costs by
eliminating
paperwork.
Healthcare

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Recording
Results
Contracts are
developed and
deployed onto a
blockchain, ready for
for use once
conditions are agreed
agreed upon.
Executions are
automatically
initiated when the
conditions are met,
met, ensuring
seamless operations.
operations.
Automated
mechanisms for
compliance and
tracking ensure
adherence to
regulatory standards.
Workflow of Smart Contract Automation
Deployment Execution Trigger
Trigger
Compliance
Checks
Results from contract
contract execution
are permanently
logged on the
blockchain for future
future reference and
and auditing.
Smart contracts
check inputs against
predefined criteria to
ensure validity before
execution.
Condition
Verification

Exploit contracts via
unauthorized recursive
calls.
Numeric issues leading to
leading to financial
integrity problems.
Reentrancy Attacks Oracle Manipulation
Risks
Front Running
Miners reorder
transactions for profit
based on insight.
Security Challenges in Smart Contracts
Data inaccuracies
threaten contract
outcomes.
Integer Overflows

Regular Auditing
Requiring multiple sign-offs for
contract execution enhances
security.
Implementing reliable data
sources ensures the validity of
external inputs.
Formal Verification
Solutions for Smart Contract
Security
Employing mathematical
techniques to prove the
correctness of contract logic.
Continual code testing and peer
reviews help identify and rectify
vulnerabilities.
Multi-Signature
Protocols
Usage of Secure Oracles

Hyperledger
Fabric
Polkadot
Binance Smart
Chain
Designed for enterprise
solutions, focusing on
permissioned networks.
Leading platform for
developing smart
contracts, customizing
with Solidity.
Provides cross-chain
functionality, enhancing
blockchain scalability.
Smart Contract Execution Platforms
Ethereum
Offers fast transactions
and low fees for
decentralized
applications.

Solidity
A powerful development
framework, offering tools for
contract compilation, deployment,
and testing, facilitating a smooth
development cycle.
A high-level programming
language specifically designed for
writing contracts on the Ethereum
platform.
Truffle Suite
Tools for Smart Contract
Development
A versatile node-based
development and testing
environment that allows
developers to deploy and maintain
contracts efficiently.
Remix IDE
A web-based integrated
development environment that
empowers developers to write,
compile, and deploy smart
contracts easily.
Hardhat

Privacy-Preserving
Technologies
Regulatory Frameworks
As regulations evolve, smart
contracts will require better
integration with legal systems to
be widely accepted.
Greater focus on developing
systems allowing different
blockchain ecosystems to
communicate and utilize smart
contracts seamlessly.
AI-Powered Contracts
Integration of AI will allow
contracts to adapt based on
historical data and perform
predictive analyses for more
intelligent execution.
Interoperability
Future Enhancements
Advances in areas like zero-
knowledge proofs will enhance
user privacy and protect
sensitive information in
transactions.

DeFi Revolution Efficient Markets
Platforms like Aave and
Compound allow users to lend and
borrow assets, with smart contracts
managing all agreements without
needing banks.
Decentralized finance eliminates
traditional intermediaries, using
smart contracts for secure,
automated financial transactions.
Enhanced efficiency and reduced
costs empower users, enabling
more participants to access
financial services without barriers.
Decentralized finance eliminates traditional intermediaries, using smart contracts for secure, automated
financial transactions.
Case Study – Smart Contracts in Finance
Real-World Example

Legal Ambiguity
High transaction fees and slow
processing times hinder
adoption.
Smart contracts depend on
oracles, risking reliability.
Scalability Issues
Security Vulnerabilities
Bugs in code can lead to
significant financial losses.
Reliance on External Data
Lack of clear regulations
complicates legal enforcement.
Limitations & Challenges

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Compliance Challenges
It’s critical to establish frameworks that prevent exploitation or
unethical usage of smart contracts in finance and beyond.
Clear guidelines are needed to protect user data within smart
contracts, ensuring privacy alongside transparency.
Ethical Use Cases
Legal & Ethical considerations are essential for the effective
implementation of smart contracts.
Privacy Concerns
Understanding how existing laws apply to smart contracts is crucial
for their deployment in various sectors.
Legal & Ethical Considerations

Traditional Contracts
Comparison of Smart Contracts vs Traditional Contracts
They provide superior speed, automated enforcement, and integrated
security through blockchain technology, significantly reducing costs and
delays.
Paper-based, requiring manual execution, often involved lengthy
verification and enforcement processes that can be error-prone.
Transformational Potential
By removing intermediaries, smart contracts enhance efficiency and
reliability, reshaping industries while fostering new business models.
Comparison of Smart Contracts
vs Traditional Contracts
Smart Contracts Advantages

Eliminating
intermediaries
directly reduces
transaction costs
and resource
usage.
The inherent
security features of
blockchain
significantly
reduce the
likelihood of
fraud.
Impact of Blockchain
Automation
Speed
Improvements
Cost Efficiency Fraud
Resistance
Automated
contract execution
results in faster
processing times
compared to
traditional
methods.

References
[1]. Mustafa, I., McGibney, A., & Rea, S. (2024). Smart contract life-cycle management: An engineering
framework for the generation of robust and verifiable smart contracts. Frontiers in Blockchain, 6, 1276233.
[2]. Chen, Y., Sun, Z., Gong, Z., & Hao, D. (2024). Improving smart contract security with contrastive learning-
based vulnerability detection. arXiv preprint arXiv:2404.17839.
[3]. Iuliano, G., & Di Nucci, D. (2024). Smart contract vulnerabilities, tools, and benchmarks: An updated
systematic literature review. arXiv preprint arXiv:2412.01719.
[4]. Hossain, T., Bappy, F. H., Zaman, T. S., & Islam, T. (2024). SEAM: A secure automated and maintainable
smart contract upgrade framework. arXiv preprint arXiv:2412.00680.
[5]. Wei, Z., Sun, J., Zhang, Z., Zhang, X., Li, M., & Hou, Z. (2024). LLM-SmartAudit: Advanced smart contract
vulnerability detection. arXiv preprint arXiv:2410.09381.
[6]. Rahman, S. (2024). Smart contracts: The blockchain revolution in contract law. International Journal for
Multidisciplinary Research, 6(3).
[7]. Chen, Y., Sun, Z., Gong, Z., & Hao, D. (2024). Improving smart contract security with contrastive learning-

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