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Smart Contracts in AI-Driven Decentralized Finance: Navigating Emerging Technologies and Market Dynamics

Smart Contracts in AI-Driven Decentralized Finance: Navigating Emerging Technologies and Market Dynamics
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Author(s): C. V. Suresh Babu (Hindustan Institute of Technology and Science, India)and G. Gokul (Vel Tech Rangarajan Dr. Sagunthala R&D Institute of Science and Technology, India)
Copyright: 2026
Pages: 44
Source title: Emerging Trends and Innovations in Financial Services: A Futurology Perspective
Source Author(s)/Editor(s): Muhammad Ali (Taylor's University, Malaysia), Syed Ali Raza (Iqra University, Pakistan)and Chin-Hong Puah (Universiti Malaysia Sarawak, Malaysia)
DOI: 10.4018/979-8-3693-7160-2.ch011

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Abstract

This study aims to explore the integration of smart contracts within decentralized finance (DeFi) platforms, focusing on their security, functionality, and potential applications across various industries. Utilizing a comprehensive survey methodology, the research analyzes existing literature and case studies to identify the advantages and challenges associated with smart contracts. Key findings reveal that while smart contracts enhance efficiency and transparency, they also present significant security vulnerabilities that necessitate advanced mitigation strategies, including the use of artificial intelligence. The study concludes that addressing these challenges is crucial for the broader adoption of smart contracts, emphasizing the need for standardized frameworks and rigorous testing protocols. The implications of this research highlight the transformative potential of smart contracts in reshaping traditional business models and regulatory landscapes.

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